European Shares Rally As China Cuts Reserve Requirements For Banks

(RTTNews) - European stocks advanced on Wednesday after China's central bank announced that it would cut the amount of cash that banks must hold as reserves by 50 basis points from February 5 for the first time this year to help the economy.

Also, media reports suggest that authorities are considering a package of measures to stabilize China's slumping stock market.

Investors also digested the latest business activity readings from the region and waited for cues from the upcoming ECB meeting.

The pan European STOXX 600 limbed 0.8 percent to 475.06 after declining 0.3 percent on Tuesday.

The German DAX rallied 0.9 percent, France's CAC 40 rose half a percent and the U.K.'s FTSE 100 was up 0.3 percent.

Ericsson tumbled 3.6 percent after the telecoms equipment supplier said it expects further decline in 5G gear demand from mobile operators this year.

Chipmaking equipment maker ASML Holding soared 6.2 percent after fourth-quarter earnings beat expectations.

Barry Callebaut, the world's biggest chocolate maker, added 1.6 percent after sales volumes rose slightly in the three months to the end of November.

EasyJet jumped nearly 5 percent after the low-cost carrier said it expected winter losses to narrow this year.

Pub group J D Wetherspoon fell about 1 percent despite reporting higher sales in the last 25 weeks.

Tullow Oil climbed 1.1 percent after an announcement that it expects 2023 production to top previous guidance.

Fresnillo jumped 5.2 percent after it reported higher silver production for 2023. French rolling stock maker Alstom slumped 5.1 percent after Q3 sales missed estimates.

German equipment manufacturer Siemens Energy jumped more than 8 percent after posting forecast-beating Q1 results.

Software company SAP soared 6.3 percent after it announced plans to restructure 8,000 jobs in a push toward artificial intelligence growth.