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European stocks advanced on Tuesday after European Union leaders reached a deal on a 750 billion euro ($862 billion) recovery fund to help the region recover from the coronavirus crisis.
The pan-European Stoxx six hundred temporarily closed 0.3%, cutting profits from the start of the session. Most primary sectors and exchanges were in positive territory at market closes.
EU heads of state had been caught up in talks since Friday morning to discuss the proposed stimulus fund and the next EU budget, however, there were deep divisions over the duration and composition of the fund. On Tuesday morning, however, the leaders reached a decisive agreement.
European Council President Charles Michel said he believed the agreement would be marked as a “decisive moment” for Europe. “We did it! Europe is strong. Europe is united,” he said at a press convention delivering the deal on Tuesday. “These were, of course, difficult negotiations in very difficult times for all Europeans.”
On Wall Street, stocks were higher thanks to strong profits. Traders also sought more clues about fiscal stimulus. House minority leader Kevin McCarthy told CNBC on Tuesday that he did not expect a coronavirus relief bill to be passed before the end of the month.
Positive news in the quest for a coronavirus vaccine also increased market sentiment on Tuesday. Pfizer and BioNTech reported early positive knowledge of a non-unusual coronavirus vaccine on Monday and Oxford University candidate and AstraZeneca also showed a positive immune reaction in a first trial. Covid-19 has now inflamed more than 14.6 million other international people and killed more than 608,000.
The main corporate profits were intense and rapid Tuesday morning, with UBS reporting a net revenue source of $1.23 billion for the 2020 quarter, 11% less than it was last year ($1.4 billion). Analysts surveyed through the Swiss lender expected a net profit of $973 million.
Swiss pharmaceutical manufacturer Novartis cut its sales outlook for 2020 after reporting a fall in second quarter profits and sales, with a profit of 4% to $1.9 billion of $2.1 billion in it in 2019.
Swedish automaker Volvo moved to an operational loss in the first part of the year, but said it expects corporations to do so as countries emerge from blocking measures, after a sharp uptick in China since the economy reopened.
In terms of individual percentage prices, the Norwegian online market Adevinta rose 26% after declaring the acquisition of eBay’s classifieds unit for $9.2 billion.
At the back of the European Blue Chips Index, the actions of the GVC sports organisation plummeted by only 12% after the UK tax government announced an investigation into the company’s former Turkish gaming unit.
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