European Markets Close Higher After Bank of England Holds Rates, Fed Cuts
European markets closed higher Thursday as investors digested the Bank of England's decision to hold interest rates steady, along with the U.S. Federal Reserve's 50 basis point rate cut.
The pan-European Stoxx 600 index provisionally ended the session 1.36% higher. All major bourses and most sectors traded in the green, with mining stocks adding 3.16%. Utilities were a rare outlier, down 1.76%.
Bank of England policy makers voted to hold its key rate steady at 5% in a widely anticipated move. The U.K. central bank said a "gradual approach" to monetary easing remained appropriate, with services inflation remaining "elevated."
The decision came a day after the Fed announced a jumbo 50 basis point cut to interest rates, bringing its target range to 4.75% to 5.00%.
Back in Europe, retail stocks climbed 1.9%. British retailer Next jumped as much as 5.8% during morning trade before pulling back to just above the flatline. The company said it was on track to make almost £1 billion ($1.32 billion) in annual profits following an uptick in first-half sales.
Source : CNBC
