European stocks surged on Friday after the People's Bank of China cut interest rates for the sixth time since November.
The STOXX Europe 600 bounced up 2.2% looking at its highest close since Oct. 19 after opening the session in positive territory. Sentiment had been buoyed after the European Central Bank (ECB) signaled on Thursday its willingness to extend its bond-buying program.
In Germany, DAX was last up 2.95%, London's FTSE climbed 1.47%, France's CAC was last up 2.61%.
Precious metals traded higher with Comex gold for December delivery climbing 1.01% to $1.177.90 an ounce and December Comex silver up 1.31% to $16.045 an ounce.
December Comex copper added 0.69% to $2.400 a pound.
The People’s Bank of China on Friday dropped its benchmark interest rates,
saying the cuts are effective as of Saturday.
The Chinese central bank cut its one-year deposit rate by 25 basis points to 1.5%. The PBOC lowered its one-year lending rate by 25 basis points to 4.35%.
“The People’s Bank has delivered another jolt of stimulus,” said Mark Williams, chief Asia economist at Capital Economics, in a note.
“The key point is that we shouldn’t take today’s announcement as evidence that policy makers have grown more concerned about the economy. Instead, this is a controlled easing cycle that underlines how China’s policy makers, unlike many of their peers elsewhere, still have room for policy maneuver.”
