European rally on Fed rate cut

September 19, 2007

European markets rallied after the U.S. Federal Reserve cut its key interest rate by more than expected. The 0.5 percentage point cut boosted confidence in troubled financial markets, with stocks in London, Paris and Frankfurt all up around two percent.But some analysts urged caution, saying the rate cut wouldn't bring an end to the credit crisis triggered by problems in the US sub-prime mortgage market. Joanna Partridge reports for Reuters