Investing.com - European stocks opened sharply higher, tracking their Asian counterparts as stability returned to global markets after China cut interest rates on Tuesday.
During European morning trade, the EURO STOXX 50 rallied 2.44%, France’s CAC 40 advanced 2.25%, while Germany’s DAX 30 surged 2.69%.
The People’s Bank of China cut interest rates by 25 basis points to 4.6% on Tuesday, in a bid to bolster economic growth after a plunge in the country’s stock market.
While the move initially boosted equity markets around the world, the impact didn't last long as investors quickly resumed their focus on the deteriorating outlook for China and its impact on the global economy.
Shares in Shanghai opened higher on Thursday, after ending the previous session 1.27% lower.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) surged 2.34% and 2.63%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) rallied 1.63% and 1.86%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) jumped 1.81% and 2.11% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) soared 2.36% and 2.66%.
Elsewhere, French telecom group Bouygues (PARIS:BOUY) jumped 6.80% after reporting a 51% climb in first-half operating profit.
On the downside, French spirits maker Pernod Ricard (PARIS:PERP) lost 2.05% after saying that full-year profit increased by 2%.
In London, FTSE 100 rallied 1.67%, as U.K. lenders tracked their European counterparts higher.
Shares in the Royal Bank of Scotland (LONDON:RBS) and Lloyds Banking (LONDON:LLOY) jumped 1.73% and 1.81% respectively, while HSBC Holdings (LONDON:HSBA) climbed 2.51% and Barclays (LONDON:BARC) surged 2.87%.
Mining stocks added to gains on the commodity-heavy index. Fresnillo (LONDON:FRES) advanced 1.60% and Glencore (LONDON:GLEN) saw shares rally 1.71%, while rivals Rio Tinto (LONDON:RIO) and Bhp Billiton (LONDON:BLT) soared 1.93% and 3.40% respectively.
CRH (LONDON:CRH) led gains on the index, with shares up 5.28% after the Irish construction group said its revenues grew 13% in the first six months of the financial year.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.81% increase, S&P 500 futures signaled a 0.82% rally, while the Nasdaq 100 futures indicated a 0.90% climb.