Europe jumps more than 5% on US stimulus, coronavirus slowdown in Italy

European stocks stocks advanced more than 5% on Tuesday, resuming gains after pausing yesterday, as market sentiment improved following huge stimulus measures in the US, in addition to a slowdown in the coronavirus spread in Italy.

The Stoxx Europe 600 index rose 5.2% as of 11:35 GMT, after it closed lower by 4.3% yesterday, on the lingering fears over a global economic recession due to the coronavirus spread in Europe.

The index opened today's session higher, to resume its gains after pausing yesterday, with most European exchanges and sectors seeing green today.

The energy sector saw the largest gains in Europe today, as its stocks rose more than 10%, thanks to the 2-day recovery in oil prices.

The global sentiment improved in stock markets after the US Federal Reserve announced yesterday an open quantitative easing program, which is aimed at easing the impact of the coronavirus pandemic.

The Fed stated "the program will provide the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy."

This means entering a new chapter in the Federal Reserve’s money printing, with its pledges to keep expanding its balance sheet instead of a set amount.

Additionally, the centre of the Europ's pandemic, Italy, announced lower daily increase of new cases for the second straight day.

S&P 500 futures rose 4.5%, after the index closed yesterday lower by 2.9% yesterday at Wall Street.

Back to Europe, the Euro Stoxx 50 index rose 5.5%, France's CAC 40 rose 4.9%, the German DAX jumped by 6.5%, and the UK's FTSE 100 climbed by 4.5%.