European stocks opened higher Tuesday as the UK’s fiscal U-turns had a positive impact on the global markets.
The British pound went up and bond yields diminished as newly appointed Finance Minister Jeremy Hunt scrapped most of Prime Minister Liz Truss’ fiscal policies on Monday.
The Bank of England (BoE) also announced that daily bond purchases provided a significant increase in the resilience of the sector, and the temporarily introduced Collateral Repo Facility application will continue until Nov. 10.
After the announcements, the UK’s 10-year bond yield fell from 4.33% to 3.97%, while the sterling/dollar parity was stabilized above 1.13 with a gain of more than 1.5%.
The STOXX Europe 600 index increased by 0.58% to 400.8 points, and Germany’s DAX 40 index gained 0.96% to 12,770 points.
The UK’s FTSE 100 index rose 0.76% to 6,973 points, France’s CAC 40 index went up by 0.83% to 6,091 points.
Spain’s IBEX 35 index increased by 0.95% to 7,629 points, while Italy’s MIB 30 index rose 1.07% to 21.547.
The euro/dollar parity is currently trading at 0.9750, up 0.1%.
Source: Anadolu Agency