European stocks jump, Stoxx 600 up 5%

European markets rebounded Tuesday after the U.S. Federal Reserve’s announced open-ended asset purchase program on Monday and the number of new coronavirus cases in Italy slowed for a second day.

The pan-European Stoxx 600 jumped 5% by mid-morning, with oil and gas stocks surging 10.2% to lead gains as all sectors and major bourses entered positive territory.

Global stock markets are being boosted by the Fed’s pledge Monday that it will run an open-ended asset purchase program amid the global coronavirus outbreak.

The central bank said the program will run in the “amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

The pledge is a new chapter in the Fed’s “money printing” as it commits to keep expanding its balance