FXStreet (Mumbai) – European equities advanced after the Bank of Japan (BOJ) surprised markets by moving rates into the negative territory for the first time ever.
At the time of writing, the pan-European Euro Stoxx 50 index was up 1.4%. Germany’s DAX was up 1.15% and France’s CAC was up 1.2%. The mining-heavy London’s FTSE was up 1%.
The stock markets cheered Bank of Japan’s decision to extend its monetary stimulus program by introducing a negative interest rate policy. The BOJ said it will apply a rate of negative 0.1 % to excess reserves that financial institutional place at the bank, effective February 16.
The risk-on sentiment also got a boost from the US stocks, which closed higher on Thursday.
(Market News Provided by FXstreet)