February 26, 2024


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European Shares Extend Gains On EU Summit Deal

(RTTNews) – European stocks rose on Tuesday and the euro hit its strongest level since early March after the European Union (EU) struck a historic deal on a €750 billion ($857 billion) coronavirus recovery fund and the bloc’s long-term budget.

Hopes for a coronavirus vaccine and expectations of more fiscal stimulus in the U.S. also helped underpin investor sentiment.

The pan European Stoxx 600 climbed 1.1 percent to 379.56 after rising 0.8 percent in the previous session. The German DAX jumped 1.8 percent, France’s CAC 40 index rose 1.3 percent and the U.K.’s FTSE 100 was up 0.7 percent.

Logitech International SA, a Swiss manufacturer of computer peripherals and software, rose over 1 percent after raising its outlook for fiscal 2021.

Pharmaceutical company Novartis declined 1.3 percent after cutting its 2020 sales outlook.

UBS AG climbed 3.8 percent after the banking giant said it plans to resume share repurchases in the fourth quarter.

Tech shares surged after Amazon and Microsoft drove the tech-rich Nasdaq Composite index to another record overnight. SAP jumped 2.3 percent, Infineon Technologies gained 2.6 percent and Dialog Semiconductor advanced 1.2 percent.

Bayer AG added nearly 2 percent after a California appeals court greatly reduced the amount of damages in a case claiming its Roundup weed killer caused cancer.

Continental AG rose 3.8 percent after its business situation improved overall in the second quarter.

GVC Holdings slumped 9 percent on news that HMRC had ordered the firm to hand over info relating to its former Turkish facing gambling business.

On the data front, the U.K. budget deficit increased sharply in June, data from the Office for National Statistics showed.

Public sector net borrowing excluding public sector banks increased GBP 28.3 billion to GBP 35.5 billion, which was the third highest deficit in any month on records. Borrowing for May was revised down by GBP 9.8 billion to GBP 45.5 billion.

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