DAX Rallies On EU Deal Boost
(RTTNews) - German stocks rallied on Tuesday after EU leaders agreed on a EUR 1.8 trillion package of measures to tackle the exceptional nature of the economic and social situation posed by the coronavirus pandemic.
After four days of marathon talks in Brussels, EU leaders conceded the package worth EUR 750 billion. Accordingly, the bloc will issue debt jointly which would be provided to member nations hit hardest by the Covid-19.
Out of the EUR 750 billion recovery plan, EUR 390 billion will be in the form of grants and EUR 360 billion of low interest rate loans. Now the deal needs to be approved by the parliament of 27 member states.
The benchmark DAX jumped 237 points, or 1.82 percent, to 13,285 after rallying 1 percent the previous day.
Tech shares surged after Amazon and Microsoft drove the tech-rich Nasdaq Composite index to another record overnight. SAP jumped 2.3 percent, Infineon Technologies gained 2.6 percent and Dialog Semiconductor advanced 1.5 percent.
Bayer AG added 1.6 percent after a California appeals court greatly reduced the amount of damages in a case claiming its Roundup weed killer caused cancer.
Continental AG rose 3.6 percent after its business situation improved overall in the second quarter.
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