European markets soar as Germany lifts ‘debt brake’ to raise defence spending

News Snapshot:

European financial markets have rallied sharply and German borrowing costs have soared after the country’s prospective leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defence. The yield – in effect the interest rate – on 30-year German government bonds rose by 16 basis points, after having earlier jumped by as much as 25 basis points to 3.07% in its biggest increase since October 1998. The Dax 30 index, which tracks the largest German companies, rose by almost 4%, powered by industrial stocks. Share prices also leapt in London, Paris and Milan amid investor...