European stocks enjoyed their biggest one-day gain in months on Friday, as investors cheered a plan to stimulate the region's economy and prop up under-capitalized banks.
The Euro Stoxx 50 index of bluechip stocks jumped 4.74 percent to 2259.88, erasing this week's losses. Still, the index is down more than 2 percent year-to-date.
The European leaders meeting in Brussels for a two-day summit agreed to make use of Eurozone's bailout funds to recapitalize the region's banks directly once an effective single supervisory mechanism is established, relieving the governments of the burden of bailing out troubled lenders.
Earlier during the summit, the leaders approved a 120 billion-euro package to promote growth in the debt-stricken Eurozone as well as across the broader 27-nation European Union.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.