(Bloomberg) -- European stocks ended a volatile session with their biggest gain since October, boosted by promises of stimulus measures in the U.S. and Spain to fight the economic impact of the coronavirus.
The Stoxx 600 Europe 600 Index added 2.2% at the close, with Spain's IBEX 35 Index jumping after the country said it would allocate as much as 200 billion euros ($219 billion) and guarantee utilities and telecom services. The two sectors led gains in Europe.
European equity investors also got a boost in sentiment after the U.S. administration said it wants to send checks to Americans as early as in two weeks to stave off the financial effects of virus-spurred restrictions. The Stoxx 600 swung between gains of 3.7% and losses of 3.3% before moving decisively higher.
“We now see the bigger European countries deliver on stimulus hopes, and that is taking the pressure and panic off the market,” said Tarek Saffaf, portfolio manager, Greiff Asset Management. “We still need to wait if this short-term sentiment improvement can be followed up by positive news form the coronavirus infections as this is really needed for a turnaround.”
The U.K.'s domestically-focused midcap gauge, the FTSE 250 Index, tumbled 3% to its lowest close since June 2013 after Prime Minister Boris Johnson urged the public to avoid all “non-essential” contact with other people. Cineworld Plc shares plunged 43% as Britain's largest cinema chains moved to close their movie theaters. Betting-shop operators William Hill Plc and GVC Holdings Plc also plunged after U.K. horse racing was suspended.
Among notable movers, Compass Group dropped after warning that the impact of the virus will weigh heavily on earnings in the first half of the year. That worsened a slump for travel and leisure shares, taking their slump in the past month to more than 50%.
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