BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - German stocks were sharply higher on Wednesday as positive service sector data from China offset concerns about rising Sino-U.S. tensions and widespread civil unrest in the United States over the death of a black man in police custody.
A Bloomberg report suggests that Germany could launch a fresh package of stimulus of as much as 100 billion euros ($112 billion) to defend against the coronavirus.
The European Central Bank is expected to expand the capabilities of its €750 billion Pandemic Emergency Purchase Program when it meets on Thursday.
The benchmark DAX jumped 227 points, or 1.88 percent, to 12,247 after climbing as much as 3.8 percent in the previous session.
Automakers BMW, Daimler and Volkswagen were up 3-4 percent.
Lender Commerzbank jumped 4 percent and Deutsche Bank advanced 2.7 percent.
Airline Deutsche Lufthansa surged nearly 4 percent on restructuring news.
Tour operator TUI AG jumped 5.7 percent after it agreed a compensation package and a new delivery deal with Boeing for its 737 MAX aircraft.
In economic releases, German unemployment increased more than expected in May amid coronavirus pandemic, data from the Federal Labor Agency showed.
The number of people out of work increased by 238,000 from the previous month to 2.875 million in May, while the jobless rate rose to 6.3 percent in May from 5.8 percent a month ago.
The euro zone services purchasing managers index rose to 30.5 in May from 12 in April, above the flash reading of 28.7 and a three-month high.
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