European stock index futures bounce on Fed’s bond buying plan

(Reuters) – European stock index futures joined a global rally on Tuesday, ahead of the U.S. Federal Reserve’s plan to kick off its corporate bond buying programme in an attempt to contain the economic damage from the COVID-19 pandemic.

The Fed is set to start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility (SMCCF), one of several emergency facilities recently launched by the U.S. central bank to shore up liquidity.

Euro Stoxx 50 futures surged 2.5%, recovering from a slump in the past week that was fuelled by concerns of another wave of global coronavirus infections. German DAX futures were up 2.7%, while FTSE 100 futures gained 2.2%.

S&P 500 futures also added 1.1%, looking set to extend gains for the benchmark S&P 500 index <.spx> for a third straight day.

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Anil D’Silva)