Loading ...LONDON (Reuters) – World shares surged on Friday as China surprised markets with its first interest rate cut in more than two years and the European Central Bank’s Mario Draghi threw the door wide open to full scale money printing.
European shares (.FTEU3), oil (LCOc1) and other growth sensitive commodities all leapt as China’s move to cut rates to 5.6 percent gave markets a welcome lift after a week where data has shown its giant economy heading for its worst year in almost quarter of a century.
It came as ECB head Draghi spoke in Frankfurt of his determination to use more aggressive measures such as large scale asset purchases -longhand for money printing- to ensure the euro zone did not slump into a new crisis.
“We will continue to meet our responsibility – we will do what we must to raise inflation and inflation expectations as fast as possible,” Draghi said in a heavyweight speech.
“If on its current trajectory our policy is not effective enough to achieve this … we would step up the pressure and broaden even more the channels through which we intervene.”
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