The Ibex and the rest of Europe rise 1% after the pact on the Recovery Fund
European leaders have finally reached an agreement this morning
The European indexes rise around 1% this Tuesday after the agreement reached this morning by European leaders on the Reconstruction Fund. Finally, it will be a Fund of 750,000 million euros, of which 390,000 million will be direct transfers, 110,000 million less than those included in the first proposal that reached the leaders' table. The rest of the Fund, € 360 billion, will reach Member States in the form of loans that they will have to repay.
IBEX 35
11.656,600
-
0,39%44,90
- Max: 11.674,00
- Min: 11.520,90
- Volume: -
- MM 200 : 11.125,61
This Monday there was already speculation with a pact in this line after the proposal that Charles Michel, President of the European Council, sent to the leaders. The market seems to be satisfied with this agreement. On the other hand, there are analysts who see it with good eyes, while there are others who are not clear about it.
"While the markets are buoyed by what has been agreed, the money in question is only a fraction of what it takes to help Italy, Spain and Greece get out of their current difficulties. This deal is likely to be another patch in a dysfunctional monetary union, as it wobbles from one crisis to another. On a more positive note, what this agreement does is establish the capital of some form of joint debt issuance, and this is what can be interpreted as a small step towards greater fiscal integration ", explains Michel Hewson, director of analysis at CMC Markets in London.
After hearing the news about the European pact, the euro has set a new four-month high at $ 1.1470.
In addition to these developments, the other latest issue is the multiple and hopeful information that is appearing about vaccines to face Covid-19. Pfizer and BioNTech reported positive data on a coronavirus vaccine on Monday and another candidate from the University of Oxford and AstraZeneca also showed a positive immune response in an early trial. The coronavirus has already infected more than 14.6 million people worldwide and has killed more than 608,000.
This Tuesday a series of outstanding results will be published in Europe. UBS has posted an 11% drop in second quarter profit and has warned of continued credit losses.
