European stocks closed higher Wednesday, following the unveiling of a huge coronavirus recovery package from the EU.

The pan-European Stoxx 600 index finished 0.2% higher with strong gains for the major bourses in Germany, France and the U.K. Bank stocks rising almost 4% to lead gains while health shares declined 2.5% to lead the losses.

Investors digested the European Commission’s plan for a 750 billion euro ($826.5 billion) recovery fund, as the region faces its worst economic crisis since the 1930s.

It came after Germany and France proposed last week to raise common European debt in an effort to support the region’s economic recovery from the coronavirus crisis.

In corporate news, Renault and Nissan on Wednesday announced plans to revamp their fragile alliance in order to slash costs and survive. The announcement drove Renault shares over 17% higher.

Source: CNBC