BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - German stocks rallied on Tuesday as a brutal sell-off in Chinese equities halted amid expectations that China would roll out more stimulus measures to provide liquidity to markets and boost consumption amid the deadly coronavirus outbreak.
The optimism emerged after China's central bank unexpectedly lowered the interest rates on reverse repurchase agreements by 10 basis points on Monday as part of efforts to relieve pressure on the economy from a rapidly spreading coronavirus outbreak.
China's Shanghai Composite index rose 1.3 percent today after falling as much as 7.7 percent on Monday as traders returned to their desks following the week-long Chinese New Year vacation.
Closer home, the benchmark DAX was up 130 points, or 1 percent, at 13,175 after rising half a percent in the previous session.
Lender Commerzbank jumped 2.6 percent and Deutsche Bank added 1 percent.
Trade-sensitive automakers BMW, Daimler and Volkswagen were up between half a percent and 1.4 percent.
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