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European stocks enjoyed an unusually strong open on Tuesday after a weak Wall Street finish, after a report the European Union will consider jointly issuing bonds to finance energy and defense spending.
The Stoxx Europe 600
SXXP,
gained over 1% in early action, as the French CAC 40
PX1,
gained 2.5%, the German DAX
DAX,
rose 1.8% and the U.K. FTSE 100
UKX,
rose 0.6%.
Bloomberg News reported the EU will unveil a plan this week for the joint spending after leaders hold an emergency summit in Versailles. The report said officials are still working out how much money they intend to raise. The joint fund raising would be the second pan-EU spending plan after the NextGenerationEU package to repair the damage from the COVID-19 pandemic.
The yield on the 10-year German bund
TMBMKDE-10Y,
shot up 9.5 basis points to 0.08%.
U.S. stock futures responded positively to the European open, with futures on the S&P 500
ES00,
rising 0.4% after a 3% nosedive for the index
SPX,
on Monday in the wake of U.S. Secretary of State Anthony Blinken saying allies were considering a ban on Russian oil imports.
