Investing.com – European stocks extended sharp gains on Monday after European Union finance ministers agreed to provide a massive loan package to prevent Greece's debt crisis from spreading across the euro zone.
During European midday trade, Germany's DAX was up 4.54%; the EURO STOXX 50 jumped 9.0%; France’s CAC 40 surged 8.45%; and Britain's FTSE 100 was up 4.95%.
Spain's IBEX 35 soared a huge 11.53% on relief that the emergency fund seemed likely to prevent the cash-strapped country from suffering Greece's fate.
Financial stocks were among the top performers, with BNP Paribas shooting up 17.73% and HSBC jumping 7.59%.
Earlier Monday, EU finance ministers agreed on the deal, which would give EUR 435 billion in new loans and EUR 59 billion under an existing lending program. The Spanish finance minister, Elena Salgado, who unveiled the package, added that the International Monetary Fund was ready to provide EUR 250 billion separately.
The outlook for U.S. equity markets was rosy: Dow Jones Industrial Average futures indicated a rise of 3.62%, S&P 500 futures pointed to an increase of 4.26% and Nasdaq 100 futures indicated a rise of 4.39%.
Later in the day, the Bank of England was set to announce a decision regarding its benchmark interest rate, which it has recently kept at a historic low to foster the country's fragile recession. The BoE was also due to announce a decision on its quantitative easing program, whereby the central bank creates money by purchasing bonds from commercial institutions.
During European midday trade, Germany's DAX was up 4.54%; the EURO STOXX 50 jumped 9.0%; France’s CAC 40 surged 8.45%; and Britain's FTSE 100 was up 4.95%.
Spain's IBEX 35 soared a huge 11.53% on relief that the emergency fund seemed likely to prevent the cash-strapped country from suffering Greece's fate.
Financial stocks were among the top performers, with BNP Paribas shooting up 17.73% and HSBC jumping 7.59%.
Earlier Monday, EU finance ministers agreed on the deal, which would give EUR 435 billion in new loans and EUR 59 billion under an existing lending program. The Spanish finance minister, Elena Salgado, who unveiled the package, added that the International Monetary Fund was ready to provide EUR 250 billion separately.
The outlook for U.S. equity markets was rosy: Dow Jones Industrial Average futures indicated a rise of 3.62%, S&P 500 futures pointed to an increase of 4.26% and Nasdaq 100 futures indicated a rise of 4.39%.
Later in the day, the Bank of England was set to announce a decision regarding its benchmark interest rate, which it has recently kept at a historic low to foster the country's fragile recession. The BoE was also due to announce a decision on its quantitative easing program, whereby the central bank creates money by purchasing bonds from commercial institutions.