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Europe: Stocks rise on BoE boost, ahead of US data
[LONDON] Europe's stock markets advanced Friday, one day after the Bank of England announced a post-Brexit interest rate cut and surprise stimulus, while investors awaited key US non-farm payrolls data.
In initial trade, London's FTSE 100 index rose 0.4 per cent to 6,764.35 points, after the BoE halved rates on Thursday to a record-low 0.25 per cent.
The British central bank also expects to trim rates again later this year to just above zero, it signalled in a statement after its monetary policy meeting.
In the eurozone on Friday, Frankfurt's DAX 30 added 0.2 per cent to 10,242.88 points and the Paris CAC 40 won 0.4 per cent to 4,362.94.
"European equity markets opened higher on Friday, as investors continue to digest yesterday's Bank of England decision and look ahead to today's US jobs report," said analyst Craig Erlam at trading firm Oanda.
He added that BoE governor Mark Carney "gave investors a lot to think about yesterday".
"Not only did he announce a stimulus package that exceeded market expectations, he also left the door wide open to further stimulus this year, and that's if the economy performs in line with the their expectations.
"Moreover, the projections for growth, inflation and unemployment clearly indicate that the central bank is very worried about the economic outlook for the UK."
While the rate cut had been widely tipped, BoE policymakers also unveiled an emergency package worth up to £170 billion (S$303.9 billion), including £60 billion for more in bond-buying, or quantitative easing (QE).