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China market slump: Central bank cuts interest rates

The People’s Bank of China cut its main interest rate by 0.25 percentage points to 4.6% in an effort to calm stock markets after two days of turmoil.

It is the fifth interest rate cut since November and will take effect on Wednesday.

The move has boosted global share prices further, with Wall Street’s Dow Jones index opening more than 1.7% higher after the move.

In mid-afternoon European trading, London’s FTSE 100 was up almost 3%, while Germany’s Dax and the Paris Cac were ahead nearly 5%.

Other European markets, including Lisbon, Madrid, Moscow and Milan, were all sharply higher.

Full article can be found here.

Source: bbc.com

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