European stocks climb as coronavirus remains in focus

London stocks and across Europe jumped on Wednesday after the Bank of England joined other major central banks in cutting interest rates to offset economic damage caused by the coronavirus outbreak.

FTSE futures were up 0.75 per cent. Euro Stoxx 50 futures were up 1.1 per cent at 2,946, German DAX futures rose 0.73 per cent, and France’s CAC 40 futures were up 1.46 per cent.

In contrast, Asian shares and US stock futures both fell as growing scepticism about Washington’s stimulus efforts to fight the coronavirus outbreak knocked the steam out of an earlier rally. US stock futures were down 2.39 per cent and MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.15 per cent.

The BoE unexpectedly cut interest rates by half a percentage point to 0.25 per cent to bolster Britain’s economy against disruption caused by the coronavirus. The BoE did not announce any new quantitative easing bond purchases, but it did launch a new scheme to support lending to small businesses.