European shares rise as Coronavirus cases start slowing down

The coronavirus outbreak has created a major stir around the world claiming the lives of over 70,000 people globally

The European shares rallied for the second straight day on Tuesday, as investors focused on the early signs that the coronavirus or COVID-19 outbreak might be easing, even though the major companies are still taking measures to shore up cash after the lockdowns crushed the demand worldwide.

The pan-European STOXX 600 index got up by 2.7 percent at 0716 GMT, the highest in nearly a month as the governors of several hard-hit US states pointing to tentative signs the outbreak might be starting to flatten.

European shares gaining

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Spanish IBEX stocks jumped 2.2 percent as coronavirus deaths slowed for a fourth day on Monday, prompting the government to contemplate a gradual easing of a nationwide lockdown.

The benchmark STOXX 600 index has now gained more than 22 since hitting an eight-year low in March, but remains more than 24 percent below its February record high when the worldwide spread of the novel coronavirus sparked a virtual halt in business activity. France's Thales on Tuesday became the latest major company to slash its dividend and suspend profit forecasts, but its shares rose 1.8 percent after it said it had signed a new two billion euro ($2.17 billion) credit facility to shore up liquidity.

(With agency inputs)

Related topics : Coronavirus