The pan-European STOXX 600 index rose 0.8 percent to 511.98 points, its highest level in a week, and all regional bourses also ended the session higher.
And reduce European Central Bank The deposit rate was cut by 25 basis points to 3.5 percent in a widely expected move that followed a similar cut in June, sending all European sectors higher except utilities, which fell 0.1 percent.
Investors’ focus now turns to what comes next and how the expected start of the Federal Reserve’s interest rate cutting cycle next week will impact the ECB’s decisions.
Financial markets currently see a 54 percent chance that the European Central Bank will cut interest rates by 25 basis points in December.
The mining sector led the gains, rising 2.4 percent after base metals prices rose on hopes of a U.S. interest rate cut next week.
The technology sector jumped 2 percent, in line with a series of gains by technology sectors in Asia, providing the biggest boost to the European index.
Spain’s consumer price index data showed that EU-compliant 12-month inflation fell to 2.4 percent in August, helping lift Spain’s blue-chip IBEX 35 index by more than 1 percent.
Inflation in Sweden fell 0.5 percent in August, slightly below expectations.
