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European Markets Close Higher On Optimism About Economic Recovery

European markets ended on a firm note on Tuesday, riding on reports about a potential coronavirus vaccine, and on optimism about economic recovery following several countries across the globe relaxing lockdown restrictions and reopening more businesses.

Hopes of more stimulus to support the Eurozone economy also contributed to the surge in stock prices. Markets also reacted to news that Berlin has agreed to a 9 billion Euro bailout for Lufthansa. Plans to lift a travel warning for scores of European countries from around mid-June contributed as well to the buoyant mood in European markets.

Automobile stocks rallied ater French President Emmanuel Macron said that support for the French car sector will be "massively amplified".

The pan European Stoxx 600 ended up 1.08%. The U.K.'s FTSE 100 gained 1.24%, Germany's DAX advanced 1% and France's CAC 40 surged up 1.46%, while Switzerland's SMI edged up marginally.

Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Norway, Poland and Spain ended sharply higher.

Portugal, Sweden and Turkey posted moderate gains, while Denmark, Netherlands and Russia ended flat.

In France, Unibail Rodamco and Accor both ended stronger by over 11%. Valeo gained 10.3%, while Credit Agricole, Safran, BNP Paribas, Airbus, Societe Generale, Sodex, ArcelorMittal, Renault and Peugeot gained 5 to 8%.

In the German market, Deutsche Bank surged up 8.75%. Thyssenkrupp gained nearly 7.5% and Lufthansa climbed up 6.55%.

Continental, Munich RE, Covestro and Infineon Technologies gained 4.5 to 6%, while Adidas, BMW, HeidelbergCement, Siemens and Allianz moved up 2.5 to 3.6%.

In the U.K. market, TUI soared 54%, IAG zoomed nearly 23% and EasyJet climbed up nearly 20%, buoyed by reports about easing of travel bans across the world.

Carnival, Rolls-Royce Holdings, Whitbread, Intercontinental, Melrose, Associated British Foods, British Land Company, Kingfisher, Royal Bank and JD Sports Fashion gained 8 to 13.2%. Lloyds Bank, Barclays, Centrica, Barratt Developments and Persimmon also rose sharply.

U.S. biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine and that it expects initial results on safety and immune responses in July.

On the data front, survey results from market research group GfK showed that German consumer confidence is set to recover marginally in June.

The forward-looking consumer sentiment index rose to -18.9 in June from -23.1 in May. The score was expected to improve to -18.3.

Switzerland's exports declined for the third straight month and at a faster pace in April, data from the Federal Customs Administration showed.

Exports decreased by a real 10% month-on-month in April, following a 3.1% fall in March, while imports declined 17.8% monthly in April, following a 6% fall in the previous month.

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