European stocks hit their highest levels since early March on Tuesday, with German stocks outperforming as carmakers rallied on hopes of stimulus and Lufthansa gained after its board approved a state bailout.
) gained between 5.9% and 9% on a Reuters report on Sunday that the country’s Ministry of Economics had proposed a 5 billion euro buyer bonus scheme to boost car sales.
Lufthansa surged 6.3% as its supervisory board approved a 9 billion euro government bailout even as it forced the German airline to give some of its prized landing slots to rivals. “Broadly firmer stock markets continue to keep market sentiment risk-on,” UniCredit analysts wrote in a morning note. With restrictions easing across the globe, data on Tuesday suggested the worst may be over for European manufacturers. All eyes are on the European Central Bank meeting later this week, where policymakers are expected to ramp up bond purchases.
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