Europe jumps to 11-week highs after EU announces recovery fund details

European stocks rose on Wednesday, to hit 11-week highs and extend gains for the third straight day, on improving investors sentiment, after the European Commission revealed the economic recovery fund details, which is aimed at supporting the countries most affected by the coronavirus. 

The Stoxx Europe 600 index rose 1.5% as of 10:45 GMT, and hit the highest since March 10 at 351.51 points, after it closed higher by 1.1% yesterday on most countries reopening measures.

The pan European index opened higher today, to head for the third straight daily gain, hitting an 11-week high, with most European markets and sectors seeing green today.

The banking sector saw the largest gains in Europe today, rising by 2.5%, after news about Europe's fiscal stimulus.

The European Commission reveled Wednesday its plans to launch a €750 billion economic recovery fund, to ease the coronavirus crisis, which is the worst economic crisis since the 1930s.

Germany and France proposed in the past week launching a €500 billion economic recovery fund by increasing European mutualisation of debt to support the countries most impacted by the health crisis,.

According to the plans, Italy and Spain, the two countries that were hardest hit by the coronavirus, will receive the biggest share with a total of €750 billion.

Italy's share will be €173 billion, divided as €82 billion in grants and €91 billion in loans, and Spain will receive €140 billion, €77 billion grants and €63 billion loans.

S&P 500 futures rose 1.1%, hitting 3-month high, after the index closed higher by 1.25% yesterday at Wall Street, posting its second straight daily gain on optimism about the development of coronavirus vaccine and hopes for the return of economic activity.

Back to Europe, the Euro Stoxx 50 index added 1.7%, the German DAX rose 1.7%, France's CAC 40 jumped 1.8%, while the UK's FTSE 100 rose 1.5%.