European stocks hit 11-week high on huge stimulus package

European stocks rose on Thursday, to hit an 11-week highs and extend gains for the fourth straight day, on strong investors sentiment, after the European Commission launched the economic stimulus fund that is aimed at supporting the countries most affected by the coronavirus in the Eurozone, which overshadowed the escalating tensions between the US and China over Hong Kong. 

The Stoxx Europe 600 index rose 0.7% as of 11:05 GMT, and hit the highest since March 9 at 353.75 points, after it closed higher by 0.2% yesterday after the European Commission revealed the economic recovery fund details.

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

The travel and leisure sector saw the largest gains in Europe today, rising by 2.5%, following many countries measures to relax the coronavirus-lockdown.

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

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.

Geopolitical tensions between the US and China over Hong Kong continued to escalate, especially after the Chinese parliament passed the new Hong Kong's national security legislation on Thursday, which raised speculation for US sanctions against Chinese officials today or on Friday.

S&P 500 futures rose 0.3%, hitting nearly a 3-month high, after the index closed higher by 1.5% yesterday at Wall Street, posting its third straight daily gain.

Back to Europe, the Euro Stoxx 50 index added 0.8%, the German DAX rose 0.5%, France's CAC 40 jumped 1.1%, while the UK's FTSE 100 rose 0.9%.