June 16, 2020 / 7:31 AM / a month ago

European shares bounce on Fed's stimulus plan

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June 16 (Reuters) - European shares jumped on Tuesday as sentiment was lifted by the launch of the U.S. Federal Reserve’s corporate bond buying programme and concerns about a second wave of global coronavirus infections eased.

The Fed is set to start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility (SMCCF), one of several emergency facilities recently launched by the U.S. central bank to shore up liquidity.

The pan-European STOXX 600 index rose 2%, recovering from a slump in the past few sessions that was fuelled by grim forecasts of an economic rebound due to the COVID-19 pandemic and a resurgence in infections in the United States and Beijing.

But soothing some fears, health officials said there were 27 new coronavirus cases in Beijing, down from 36 new cases the previous day.

Battered travel and leisure stocks surged 3.9%, led by a 6.6% jump in Cineworld after the British cinema operator said it expected all of its theatres to reopen by July.

The German DAX index added 2.4%, while Italian and British bourses rose 2% and 2.5%, respectively.

Germany’s Zalando fell 5.1% following a stake sale by Swedish investment firm Kinnevik AB in the online fashion retailer. (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Amy Caren Daniel)

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