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.
by RTT Staff Writer
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