Stock markets bounce on China rate cut | Business

London’s leading stock market index bounced this morning as it managed to claw back pretty much all of yesterday’s losses.

The export-heavy FTSE 100 rebounded 132.50 points, or 1.8 per cent, to 7,435.05 after China cut a key borrowing rate for mortgages in a move that boosted sentiment at the end of a tough week for markets.

Asian and European markets rose on the higher-than-expected rate cut and spreadbetters are predicting that Wall Street will open higher. Despite the end-of-the-week rally the leading UK index is still on track to lose about 1.5 per cent over the week.

The FTSE 250, which has not been immune from the recent selling pressure, improved 344.88 points, or 1.8 per cent, to 20,033.34.

Bargain Hunters swooped on