By Peter Nurse
Investing.com - European stock markets pushed higher Tuesday, boosted by the European Union leaders agreeing on a massive stimulus plan to help rebuild the economies damaged by the coronavirus pandemic.
At 3:35 AM ET (0735 GMT), the DAX in Germany traded 1.6% higher, the CAC 40 in France rose 1.2% and the U.K.'s FTSE index was up 0.6%.
After almost five days of haggling, the leaders agreed on a compromise that cut the share of grants within the 750 billion-euro envelope to 390 billion euros, down from 500 billion euros originally proposed, and the rest in repayable loans.
That comes on top of the seven-year one trillion euro EU budget that had been a source of contention even before the pandemic.
"This is an important signal beyond Europe's borders that the EU, even with all the (EU member states') varying backgrounds, is able to take action," German Chancellor Angela Merkel told reporters during a joint news conference with French President Emmanuel Macron.
In corporate news, UBS (SIX:UBSG) stock rose 3.1% after the Swiss banking giant announced a net profit of $1.23 billion for the second quarter, down 11% from the same period last year, but ahead of analysts’ expectations.
Remy Cointreau (PA:RCOP) climbed 4.8% after the French spirits maker said sales for the first quarter of its fiscal year came in above expectations and raised its half-year guidance.
On the flip side, GVC Holdings (LON:GVC) dropped 7.9% after the news that the British tax authorities had expanded an investigation into the gambling company's former online business in Turkey to include unidentified entities within the London-listed group.
Novartis (SIX:NOVN) fell 0.8% after its net profit and sales declined in the second quarter with medicine stockpiling triggered by the coronavirus pandemic in the previous quarter largely reversing.
Attention will turn later in the session onto the U.S. corporate earnings season, with several big household names due to report Tuesday including Coca-Cola Company (NYSE:KO) and United Airlines Holdings (NASDAQ:UAL).
U.S. policymakers are also set to discuss their next steps in responding to the coronavirus crisis later Tuesday, with investors expecting another economic package in the near future given some earlier measures are set to expire at the end of the July.
Oil prices edged higher Tuesday, with the American Petroleum Institute’s weekly report on U.S. oil stockpiles due later in the session.
At 3:35 AM ET, U.S. crude futures traded 0.6% higher at $41.16 a barrel, while the international benchmark Brent contract rose 0.7% to $43.60.
Elsewhere, gold futures rose 0.4% to $1,823.90/oz, while EUR/USD traded at 1.1446, up 0.1%.