Global stocks, euro rally on EU's massive recovery fund | Malay Mail

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NEW YORK, July 22 ― World shares rallied to their highest since February and the euro hit its strongest in 18 months yesterday after European Union leaders agreed on a landmark stimulus package to revive regional economies ravaged by the coronavirus. The agreement after five days of haggling...

The German share price index DAX graph is pictured at the stock exchange in Frankfurt. ― Reuters pic

EU summit Chairman Charles Michel presented the final plan as a “pivotal” moment to dispel doubts about the bloc's future. “It's a significant step towards a more integrated and united Europe, which should boost the region's appeal to global investors and facilitate its re-rating,” said Barclays' head of European equity strategy Emmanuel Cau.

With the EU recovery plan sealed, investors will now focus on further US stimulus after US$3 trillion was injected earlier this year. They are ignoring stretched valuations or buying 10-year debt instruments with negative yields, he said.

 

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