European stocks rise after shock Bank of England rate cut

European stocks rise after shock Bank of England rate cut

European stocks rose Wednesday after the Bank of England made its first emergency rate move since 2008.

Julian Satterthwaite reports.

European stocks rose early Wednesday (March 11), with the Bank of England likely to take the credit.

It cut rates by half a percentage point early in the morning, in a bid to soften the economic impact of the coronavirus outbreak.

It's the first time the central bank has made an emergency policy change since the global financial crisis in 2008.

And it's fueled bets that the European Central Bank will cut rates too, when it holds a policy meeting Thursday (March 12).

European indexes all rose as a result.

The regional Stoxx 600 was up close to 2% in the first hour of trade, before easing back.

Bank stocks were among the big gainers, with Lloyds up over 3% and France's Societe Generale up over 5%.

Though coronavirus concerns weren't hard to find.

Shares in Adidas fell 4% after it warned that first quarter sales in China could drop by over $1 billion.

Pessimism too in Asia.

Stocks there initially rallied, on hopes of U.S. stimulus measures.

But then fell back as Washington failed to announce any concrete steps.

Benchmark indexes in Japan and South Korea were worst hit, both closing down by over 2%.

Oil too was on the defensive.

That after Saudi Arabia said Wednesday it would raise production capacity for the first time in a decade.

After a falling out with Russia, it's begun a battle for market share that has hammered prices.

Brent crude was down over 2% in early European trade.