European stocks rise, focusing on EU recovery plan
European stocks rose in value on Wednesday as investors focused on a new stimulus plan for the European Union, and renewed tensions between the US and China over Hong Kong tempered optimism about a recovery in the global economy.
The pan-European STOXX 600 index gained 0.4% in early deals, led by .SX7P banks, .SXTP travel and leisure stocks, and .SXAP car manufacturers.
The eurozone stock index .STOXXE also added 0.4%. The European Commission will unveil a plan to help the EU economy recover from the recession of the coronavirus through grants, loans, and guarantees in excess of 1 trillion euros.
However, Asian markets fought after new protests in Hong Kong over Beijing’s new national security laws, while US President Donald Trump warned of a decisive response to China’s actions by the end of this week.
Finnish tire maker Nokian Tires Plc (TIRES.HE) climbed 17% to the top of the STOXX 600 after it named the new CEO.
Chip maker Infineon Technologies AG (IFXGn.DE) fell 2% after collecting around 1.06 billion euros ($ 1.16 billion) by issuing new shares to partially fund its acquisition of Cypress Semiconductor for $ 10 billion.