World stock prices on Tuesday mostly rose and the value of the euro also rose after European Union (EU) agreement between Heads of State and Government on the creation of a € 750 billion EU Economic Recovery Fund.
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Agreement on the establishment of such a fundto finance the EU’s exit from the deep economic downturn caused by the Covid-19 pandemic. was reached at the EU summit in Brussels after intense negotiations lasting more than 90 hours.
The compromise reached calls for € 750 billion to be invested in the Economic Recovery Fund and more than € 1.074 trillion for the next EU long-term budget.
As a result of the agreement, the Member States hardest hit by the coronavirus pandemic will be able to receive billions of euros for the recovery of their economies, which has been particularly active in Spain and Italy, which are already heavily indebted.
The agreement reached a rise in stock prices on European stock exchanges, including Paris and Frankfurt, as well as the appreciation of the euro against the US dollar to its highest level since the beginning of 2019.
Katie Liena, an analyst at BK Asset Management, said that Europe was more successful than the United States in reopening its economy without causing a sharp rise in Covid-19 cases, and that the agreement reached would boost the EU’s economic momentum.
“As the outlook for the US economy becomes more uncertain, these steps to ensure a stronger recovery have raised and will continue to raise the value of the euro,” Liena said.
Share prices of oil companies Exxon Mobil and Chevron rose 7.2% and 5.1%, respectively, while oil prices reached a four-month high.
The share price of the US aviation company Boeing increased by 2.4%.
The Dow Jones Industrial Average rose 0.6% to 26,840.40 points on Tuesday, the Standard & Poor’s 500 rose 0.2% to 3,257.30 points, and the Nasdaq Composite fell 0.8% to 10,680.36 points.
The London Stock Exchange index FTSE 100 rose 0.1% to 6269.73 points on Tuesday, the Frankfurt stock exchange index DAX 30 rose 1.0% to 13,171.83 points, and the Paris stock exchange index CAC 40 rose 0.2% to 5104 points. , 28 points.
In the e-commerce of the New York Stock Exchange, the price of WTI crude oil rose by 2.8% on Tuesday to USD 41.96 per barrel. The price of Brent crude rose 2.4% to $ 44.32 a barrel on the London Stock Exchange.
The euro appreciated against the US dollar from 1.1448 to 1.1522 dollars per euro on Tuesday, the British pound against the US dollar rose from 1.2661 to 1.2733 dollars per pound, while the US dollar depreciated against the Japanese yen from 107.27 to 106.77 yen per dollar. The value of the euro against the British pound rose from 90.41 to 90.49 pence per euro.
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