FTSE jumps after China's surprise rate cut

Global equity indices surged higher after China cut interest rates for the first time in four years in a bid to support growth and combat economic slowdown.

China's central bank announced 0.25 percentage point cuts to its lending and deposit rates this afternoon, the first such moves since September 2008. The one-year deposit rate will drop to 3.25% from 3.5% as of tomorrow tomorrow, the People's Bank of China said, while the one-year lending rate will fall to 6.31% from 6.56%. Chinese banks can also offer a 20% discount to the benchmark lending rate, widening from a previous 10%. The FTSE extended gains this afternoon following the news, standing 107 points or 2% higher at 5,491, following on from yesterday's 2.4% rise. European st...