European stocks closed higher Tuesday after the People’s Bank of China (the central bank) unveiled wide-ranging stimulus measures to help the Chinese economy out of its slump.
The European Stoxx 600 index closed up 0.7 percent, while the French index rose by about 1.3 percent, supported by the rise in luxury goods stocks.
The luxury goods sub-index, which relies heavily on Chinese consumer spending, was among the most supportive of the European index after rising 2.5 percent.
In turn, LVMH shares rose 3.2 percent and Richemont, owner of Cartier, rose 4.1 percent.
The commodity sub-index was the biggest gainer among the main sectors on the European Stoxx 600 index, up 4.4 percent, the biggest one-day gain in more than 22 months, after primary metals prices rose as demand prospects in China improved.
Other China-sensitive sectors, such as autos, rose 1.1 percent and industrials 0.6 percent. Most European stock markets ended higher, although the FTSE 250 index of mid-cap companies in Britain fell 0.4 percent.
Source: Qatar News Agency