July 19, 2013 / 11:27 AM / 4 years ago

European shares pare losses after China rate reform

1 Min Read

LONDON, July 19 (Reuters) - European shares pared their losses on Friday, with traders attributing the move higher to a decision by China to set up interest rate reforms which would help the Chinese economy.

The pan-European FTSEurofirst 300 index turned flat before slightly falling back to trade down 0.1 percent at 1,207.79 points by 1125 GMT, while the Euro STOXX 50 index fell 0.2 percent, although both indexes were off their session lows.

China's central bank announced long-awaited interest rate reforms on Friday, scrapping the previous floor on the rates that banks charge clients for loans.

"It's another method of easing and a form of looser monetary policy," said a London-based equity trader.

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