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European shares continue recovery on US $2tn stimulus

European shares continue recovery on US $2tn stimulus

European shares rose during Wednesday's trading, continuing to recover from full-week losses that pushed markets to a seven-year low, as investors' appetite for risk increased in the hope of a return to stability due to recent U.S. $2 trillion stimulus.

As of 08:05 GMT, the Euro STOXX 600 surged 3.36 percent to 331.26, while recorded its strongest session since late 2008 during yesterday's trading after earning more than 8 percent.

France CAC 40 was 2.29 percent up at 4,324.01, and Germany’s DAX ascended 2.62 percent to 9,930. In Britain, FTSE 100 increased by 2.65 percent to 5,460.50.

The positive performance of European markets coincided with reports that Democrats and Republicans were close to completing a $2 trillion stimulus package to reduce the economic damage caused by the Coronavirus pandemic.

The legislation, which is expected to be enacted within days, is the biggest economic stimulus package in modern American history.

In addition, the Fed's decision on the unlimited asset purchase program, as well as other measures to support the economy and credit markets managed to boost risk sentiment.

Trump wants U.S. “opened up” by Easter, as New Yorkers are urged to self-quarantine.

The World Health Organization (WHO) warned yesterday that corona is increasing in frequency, with more than 390,000 cases globally increasing and more than 17,000 deaths, according to data from Johns Hopkins University.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, slumped by 0.72 at 101.50.

As for economic data revealed a slowdown in UK today, consumer prices retreated from a six-month high recorded in January on cheaper petrol prices.

The consumer price inflation index slowed to 1.7 percent in the year ended in February, in line with expectations, down from a previous 1.8 percent, according to data from the National Bureau of Statistics.

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