European shares rally after surprise BoJ easing

PARIS Fri Oct 31, 2014 4:08am EDT

PARIS Oct 31 (Reuters) - European shares surged in early trade on Friday, tracking sharp gains in Tokyo after the Bank of Japan stunned global financial markets by easing policy further.

At 0803 GMT, the FTSEurofirst 300 index of top European shares was up 1.3 percent at 1,344.18 points, extending its sharp two-week rally.

The Bank of Japan will increase the pace at which it expands base money to about 80 trillion yen per year, up from a previous target of 60-70 trillion yen. It also decided to increase its purchases of government debt by about 30 trillion yen and extend the average duration of JGB holdings to around 10 years, and decided to triple its purchases of exchange-traded funds and Japan real estate investment trusts.

The surprise announcement sent Tokyo's Nikkei index surging 4.8 percent.

(Reporting by Blaise Robinson; Editing by Alistair Smout)

 
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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