European markets higher after UK fiscal turnaround; EU energy announcement

New British Chancellor of the Exchequer Jeremy Hunt made major fiscal announcements on Monday.

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LONDON — European markets are higher as the region feels the impact of the UK’s fiscal turnaround on Monday and anticipates new EU measures to tackle energy prices. The Stoxx 600 index is up 0.4%.

Most sectors and major exchanges posted gains at 11 a.m. London time, with cars up 2.2%, followed by technology and financial services, both up 1.4%.

Basic resources, health care and oil and gas have plunged into the red, with losses of less than 1%.

The British pound rose and bond yields fell after new Chancellor of the Exchequer Jeremy Hunt scrapped most of Prime Minister Liz Truss’s fiscal policy on Monday. Sterling is down 0.7% at 11 a.m. to $1.1353

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

US stock futures rose Tuesday morning after the Nasdaq Composite posted its best daily performance since July. Futures linked to the Dow Jones Industrial Average rose 373 points, or 1.23%. S&P 500 futures rose 1.46% and Nasdaq 100 futures climbed 1.7%.

Shares in Asia-Pacific traded higher on Tuesday after Wall Street’s overnight rally. The Australian S&P/ASX 200 gained 1.68% to lead the region, the Nikkei 225 rose 1.38%, while the Topix added 1.11%.

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