European shares extend gains, Germany outperforms

(Reuters) – European shares extended gains on Tuesday as fresh stimulus plans for the European Union added to hopes of a faster economic recovery from a coronavirus-fuelled downturn.

The pan-European STOXX 600 <.stoxx> rose 0.16% by 0716 GMT, with German stocks <.gdaxi> leading regional gains with a 0.9% rise.

Euro zone stocks <.stoxxe> gained 0.4% after France and Germany proposed a 500 billion euros recovery fund on Monday that would offer grants to European Union regions and sectors hit hardest by the pandemic.

That supported sentiment after the STOXX 600 saw its best performance since March 24 in the previous session after an encouraging report on a potential COVID-19 vaccine and on easing of lockdowns across several countries.

Struggling German industrial company Thyssenkrupp AG jumped 6.2% said it was looking for partners for its steel and warship divisions.

French spirits company Remy Cointreau SA dropped 6% after Goldman Sachs downgraded its shares to “neutral” from “buy”.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)