Markets rally on Fed rate cut

Wall Street opened sharply higher and European stocks jumped on Friday afternoon following the surprise decision by the US Federal Reserve to cut the discount rate by 50 basis points to 5.75%.

After a volatile morning, European markets received a lunchtime boost from the surprise decision by the US Federal Reserve to cut the discount rate by 50 basis points to 5.75%.

In London, the FTSE 100 rebounded over 3% following the announcement and was 205 points higher at 6,064 by Friday's close. Elsewhere in Europe, the Frankfurt DAX-30 climbed 108 points to end the day at 7,378 and the Paris CAC-40 closed 98 points higher at 5,363.

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