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European shares climb to four-month high on EU deal, vaccine optimism

European shares climb to four-month high on EU deal, vaccine optimism

European shares climbed to the highest level in four months on Tuesday as EU leaders finally agreed to a €750 billion Recovery Fund and amid optimism after encouraging results from Oxford’s vaccine candidate.

After five straight days of tough negotiations, EU leaders finally managed to seal a deal for a recovery fund that will include €390 billion in grants and €360 billion in loans to help countries hit hard by the coronavirus pandemic.

“This is a good deal, a strong deal, the right deal for Europeans now. I believe this will be seen as a pivotal moment on Europe’s journey,” said EC president Charles Michel.

On the other hand, optimism about having a vaccine by Christmas rose after both AstraZeneca and Pfizer reported positive results from their early human trials.

Prof Sarah Gilbert, from Oxford’s Jenner Institute, told the Guardian that “they were more than happy with the first results, which showed good immunity after a single dose of vaccine.”

The benchmark Euro STOXX 600 added 0.9 percent to 379.00, which is the highest level since March 5.

German DAX 30 index augmented 1.66 parcen to 13,264.36, while CAC 40 soared 1.10 percent to 5,149.00.

In the U.K., the FTSE 100 index surged 0.35% to 6,283.07.

Asian stocks locked high gains today, trailing overnight advance on Wall Street, led by Australia’s S&P/ASX 200, which finished 2.5 percent up.

The EU deal and vaccine hopes dwarfed the worries stemming from the tensions between the U.K. and China, as well as the rise in Covid-19 cases in California.

Despite being a safe haven asset, gold hit a new peak at $1824.15 an ounce, the highest since September 2011, as the dollar index fell to its lowest level since March 10 at 95.54.

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