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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.