European shares surge for 2nd session on stimulus bump

European shares Jumped on Wednesday following a strong rally in the previous session, as investors bet on unprecedented stimulus measures to ease the economic pain on businesses and households from the coronavirus pandemic

The pan-European STOXX 600 index was up 4.2%, with energy .SXEP, autos .SXAP, insurers .SXIP and financials .SXFP jumping between 5.4% and 6.7%.

With an 8% surge on Tuesday, swings last seen at the height of the 2008 financial crisis, the benchmark index has recovered its losses from mid March, but remains more than 25% below its record high last month.

Air France-KLM (AIRF.PA), British Airways-owner IAG (ICAG.L), Ryanair (RYA.I) and EasyJet (EZJ.L) gained between 7.2% and 13.2% amid the broader rebound.

German shares .GDAXI jumped 3.7% after posting their best day since 2008 on Tuesday, while Europe’s fear gauge .V2TX fell for the fifth day in a row as a modicum of calm returned to financial markets.