European stocks surge as EU leaders agree on a 'shiny' $860 billion coronavirus recovery pact

• Global stocks rose on Tuesday as European Union leaders reached a breakthrough agreement on a "shiny" $860 billion recovery fund.
• Major continental European indexes surged, with the pan-European Stoxx 50 up 1.5%.
• Futures tied to the S&P 500 rose 0.7% following tech stocks leading the market higher on Monday.
• Bank of America analysts said the EU fund does not "move the needle enough for the macro given the size of the shock."
• Visit Business Insider's homepage for more stories.

Global stocks surged on Tuesday as investors were relieved by the European Union's sanction of a 750 billion euro ($860 billion) recovery fund.

Germany's DAX index led markets by rising 1.7%, while the pan-continental Euro Stoxx 50 gained 1.5%.

Futures tied to the S&P 500 rose 0.7% after US tech stocks led the market higher on Monday.

The EU member states came out the other side of a four-day Brussels summit holding aloft a "shiny" COVID-19 rescue package, said Connor Campbell, a financial analyst at SpreadEx.

The recovery deal did not come without compromises as EU leaders modified the original structure by agreeing on a distribution of 390 billion euros ($446 billion) in grants and 360 billion ($641 billion) in loans.

Its original composition, which was disputed by the so-called "Frugal Four" nations, was set at 500 billion euros in grants and 250 billion in loans.

Read More: BANK OF AMERICA: Buy these 9 stocks poised to crush the market in any market environment as they spend heavily on innovation

While different to the original proposed fund, the package is a welcome relief after days of squabbling between EU leaders, SpreadEx analyst Connor Campbell said in an email.

"The European indices weren't ready to look a gift horse in the mouth," he remarked.

However, analysts at Bank of America said the fresh stimulus does not "move the needle enough for the macro given the size of the shock." That is partially down to the fact that the fund is spread over several years with the most money set to be spent in 2024.

"The recovery fund is a recovery tool — we still lack a proper cyclical/stabilisation tool and national governments are left to deal with that on their own," the analysts wrote in a note.

The UK's FTSE 100 rose only 0.5% after falling the previous day despite positive results from AstraZeneca and Oxford University's COVID-19 vaccine trial data.

Read More: Leka Devatha quit a cushy corporate career to start flipping houses. She breaks down how she made $1 million on a single deal by supercharging a simple strategy.

Here's the market roundup as of 12.20 p.m. in London (7.20 a.m. ET):

• Asian indexes were up with China's Shanghai Composite up 0.2%, Hong Kong's Hang Seng up 2.3%, and Japan's Nikkei up 0.7%.
• European equities were up, with Germany's DAX up 1.7%, Britain's FTSE 100 up 0.5%, and the Euro Stoxx 50 up 1.5%.
• US stocks are set to open higher. Futures underlying the Dow Jones Industrial Average, the S&P 500, and the Nasdaq rose between 0.6% and 0.8%.
• Oil prices rose, with West Texas Intermediate up 3.35% to $42.25, and Brent crude up 3.3% at $44.70.
• The benchmark 10-year Treasury yield fell to 0.61%.
• Gold rose 0.6% to $1,828 per ounce.
• Silver hit a nearly 4-year high by rising 3.6% to $20.92 per ounce.