LONDON, July 19 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.