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Europe: Stocks rally on stimulus hope, China rate cut

[LONDON] European stock markets rallied Friday on expectations of further economic stimulus for the eurozone and China's decision to slash interest rates to counter the slowdown in the world's second-biggest economy.

The eurozone's main stock markets in Frankfurt and Paris rose briefly by as much as three percent following hints of new economic stimulus from the European Central Bank.

The DAX 30 index soared 2.88 percent to close at 10,794.54 points while the CAC 40 rose 2.53 percent to 4,923.64 points, also buoyed by a key business survey showing eurozone economic activity accelerated in October, in one of the best performances in four years.

London's benchmark FTSE 100 index meanwhile won 1.06 percent to end the day at 6,444.08 points.

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Market sentiment was also boosted by news mid-afternoon that the People's Bank of China was trimming interest rates by 0.25 percentage points and its reserve requirement ratio by 0.50 percentage points.

The PBoC also abolished its official cap on interest rates for savers as Beijing seeks to address slowing growth.