Written by 1:52 pm EU Investment

European markets higher after UK fiscal U-turns; EU energy announcement

The U.K.’s new Finance Minister Jeremy Hunt made big fiscal announcements Monday.

House of Commons – PA Images / Contributor / Getty Images

LONDON — European markets are higher as the region feels the impact of the U.K.’s fiscal U-turns on Monday and anticipates new EU measures to tackle energy prices. The Stoxx 600 index is up 1.15%.

All sectors barring oil and gas made gains by 2:50 p.m. London time, with autos leading increases up 2.7%, followed by technology at 2.6%. Germany’s DAX rose 2%, France’s CAC 40 rose 1.5% and the U.K.’s FTSE 100 rose 1%.

The British pound rose and bond yields fell after new Finance Minister Jeremy Hunt scrapped most of Prime Minister Liz Truss’ fiscal policies in an announcement Monday. Sterling was down 0.3% to $1.1353 by 2:50 p.m. in London.

Truss apologized for the “mistakes” she made in her first six weeks in the position.

Stock futures rose Tuesday morning after the Nasdaq Composite posted its best daily performance since July. Nasdaq 100 futures climbed 2.13%. Futures tied to the Dow Jones Industrial Average gained 506 points or 1.67% and S&P 500 futures jumped 1.88%.

In Australia, the S&P/ASX 200 gained 1.72% to 6,779.20, leading gains in the wider region. The Nikkei 225 was 1.42% up at 27,156.14, while the Topix added 1.16% to 1,901.44.

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