European exchanges higher after European Central Bank's 1st rate cut in 5 years

By Ovunc Kutlu

ISTANBUL (AA) - European stock exchanges closed Thursday with gains after the European Central Bank (ECB) cut interest rates for the first time in five years, lowering its three key benchmarks by 25 basis points each.

The STOXX Europe 600, which includes around 90% of the market capitalization of European markets in 17 countries, was up 3.45 points, or 0.66%, to close at 524.68.

The UK's FTSE 100 rose 38 points, or 0.47%, to finish the session at 8,285, while Spain's IBEX 35 gained 90 points, or 0.8%, to end the day at 11,444.

Germany’s DAX added 76 points, or 0.41%, to close at almost 18,652 and France's CAC 40 gained 33 points, or 0.42%, to end the session at 8,040.

Italy's FTSE MIB was the best performer of the day, soaring 326 points, or 0.95%, to hit 34,834 by the closing bell.

The ECB announced earlier the interest rate on the main refinancing operations, the marginal lending facility, and the deposit facility will be cut to 4.25%, 4.50% and 3.75%, respectively, starting on June 12.