LONDON — Europe’s markets all finished the day with significant gains Tuesday, beginning to make back the ground they lost after a week of falls, when Europe’s indices dipped in tandem with Asia’s plummeting markets.
While Europe’s indices had all got off to a positive start Tuesday – even as Asia’s indices continued to drop – they rose further after the People’s Bank of China cut its benchmark lending rate by 0.25 percent to 4.6 percent Tuesday, in a bid to boost its economy.
The FTSE MIB in Milan closed up 5.9 percent to 21,649.69, while the DAX in Frankfurt finished up 5 percent to 10,128.12. The CAC 40 in Paris had gained 4.1 percent to 4,564.86, and the FTSE 100 in London rose 3.1 percent to 6,081.34.
China’s Shanghai Stock Exchange Composite Index closed down 7.6 percent to 2,964.97, while the Nikkei 225 in Tokyo lost 4 percent to 17,806.70. Hong Kong’s Hang Seng Index had edged up 0.7 percent to 21,404.96.
Fashion, luxury and retail stocks saw gains across the board.
Those that rose the most numbered Carrefour, 6 percent to 28.61 euros; LVMH Moët Hennessy Louis Vuitton, 5.9 percent to 147.55 euros; Yoox Group, 5.4 percent to 26.92 euros and Inditex, 5.2 percent to 29.25 euros. British retailer French Connection saw the biggest surge, rising 17 percent to 0.32 pounds.
The few fallers included Koovs, 2.8 percent to 0.71 pounds and Italia Independent, 1.4 percent to 28.10 euros. Stocks listed in Asia also fell, with Prada down 1.2 percent to 32.40 Hong Kong dollars and Esprit losing 3 percent to 6.06 Hong Kong dollars.
At 6.43 p.m. CET, the pound traded for $1.57, while the euro went for $1.15 against the dollar and the Hong Kong dollar for $0.13.