FX.co ★ European Stocks Rise to 2-Month Highs

European stocks experienced a strong close on Tuesday, climbing back from minor losses seen the day before to reach their highest levels in two months. This rise is bolstered by the positive forecast of increased government spending across Europe. The Eurozone’s STOXX 50 advanced by 0.4%, closing at 5,450, while the STOXX 600 saw a more pronounced gain of 0.7%, closing at 554. This robust performance was driven, in part, by significant gains in major pharmaceutical companies. The consumer discretionary sector managed to recover some of its previous sharp losses, with LVMH, BMW, and Kering all posting increases ranging from 1.5% to 4%. The banking sector also demonstrated overall positive movement, highlighted by BBVA, UniCredit, and Intesa Sanpaolo each rising more than 1%. Additionally, outside the eurozone, Novo Nordisk shares soared by 4% following the announcement of its CEO's resignation. Meanwhile, Vodafone's shares jumped 5.7% after unveiling a €2 billion share buyback initiative. Conversely, Swiss Life slipped by 0.4%, despite reporting higher fee income and increased premiums for the first quarter.