European stocks extend gains from Monday's rally as airlines rally

European stocks extended gains on Tuesday, after the sensational rally the previous session on news of a Franco-German proposal for a 500 billion euro recovery fund as well as a promising trial of a COVID-19 vaccine. Up 4.1% on Monday, the Stoxx Europe 600 SXXP, -0.61% rose 0.4%.

The rally in airlines continued with gains for International Consolidated Airlines Group IAG, +7.25% and, ahead of Friday's contentious shareholder meeting, easyJet EZJ, +3.22%. Imperial Brands IMB, -6.89% declined after cutting its dividend by a third. Futures on the Dow Jones Industrial Average YM00, -0.06% rose 177 points.

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