LONDON, Oct 31 (AFP): European stocks rallied Friday, as investors welcomed the Bank of Japan's stimulus boost and upbeat earnings, but gold hit a four-year low on strength of the dollar and improving risk sentiment.
Nearing midday, London's FTSE 100 index jumped 1.12 per cent to 6,535.55 points, while Frankfurt's DAX 30 gained 1.73 per cent to 9,272.31 points and the Paris CAC 40 advanced 1.86 per cent to 4,218.37 compared with Thursday's close.
The BoJ ramped up its vast monetary easing programme on Friday, in a shock move aimed at reviving growth just as the Federal Reserve winds down its own stimulus spree.
The BoJ said on Friday it would add up to 20 trillion yen ($182 billion) to its current asset-buying scheme, bringing it to 80 trillion yen annually.
"Just as the Fed takes away the punch bowl, the BoJ has turned up with a crate of sake," said Capital Spreads dealer Jonathan Sudaria, pointing to diverging trends in monetary policies.
Some economists hold that the European Central Bank may have to ease eurozone monetary conditions even further to ward off risks of deflation. However, the Bank of England is edging towards tighter monetary conditions at some stage.
European stocks rally on surprise BoJ stimulus
FE Team | Published: November 01, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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