The pan-European Stoxx 600 rose 1.1% in early trading, with banks adding 3.4% to lead gains as all sectors and major exchanges traded in positive territory.
EU heads of state had been in talks since Friday morning to discuss the proposed recovery fund and the upcoming EU budget, but there were deep divisions over the size and composition of the fund. On Tuesday morning, however, the leaders reached a decisive agreement.
European Council President Charles Michel said he believes this agreement will be seen as a “turning point” for Europe. “We made it! Europe is strong. Europe is united,” he said at a press conference Tuesday morning announcing the deal. “These were, of course, difficult negotiations in very difficult times for all Europeans.”
Positive news in the quest for a coronavirus vaccine is also likely to boost market sentiment in Europe again on Tuesday. Asia Pacific markets rose mainly on Tuesday after investor sentiment was supported by positive news series on the coronavirus vaccine front.
Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine on Monday, and another candidate from the University of Oxford and AstraZeneca also showed a positive immune response in an early trial. The coronavirus has now infected more than 14.6 million people worldwide and has killed more than 608,000.
Earnings in focus
Major corporate earnings came thick and fast on Tuesday morning, with UBS announcing a net profit of $ 1.23 billion for the second quarter of 2020, 11% less than in the same period last year ($ 1.4 thousand millions). Analysts surveyed by the Swiss lender expected a net profit of $ 973 million.
Swiss drug maker Novartis lowered its 2020 sales outlook after reporting a drop in second-quarter earnings and sales, with net revenue falling 4% to $ 1.9 billion from $ 2.1 billion over the same period in 2019.
Swedish automaker Volvo suffered an operating loss in the first half, but said it expects companies to recover as countries emerge from the blockade measures, having seen a strong rebound in China since the economy reopened. .
In terms of individual share price action, French telecommunications provider Altice Europe, Dutch recruiter Randstad and Spanish Banco de Sabadell obtained more than 6% in the first operations.
At the end of the European Premier Index, Evolution Gaming fell 7.8% after signing a strategic partnership with Intralot.
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