European stock markets rally after bumper Fed rate cut

LONDON: Europe’s main stock markets rallied at the start of trading Thursday after the US Federal Reserve’s first interest-rate cut in more than four years.

London’s FTSE 100 index won 0.9 percent to 8,330.62 points, with analysts forecasting that the Bank of England would maintain British borrowing costs at 5.0 percent in a decision due later in the day.

European stock markets steady before Fed rate call

In the eurozone, the Paris CAC 40 index jumped 1.4 percent to 7,551.65 points and Frankfurt’s DAX advanced 0.9 percent to 18,882.53.

The Fed cut its key lending rate by 50 basis points Wednesday with US inflation easing towards the central bank’s long-term two-percent target.