Stock indices traded lower as concerns over a slowdown in the Chinese economy turned in focus again. The People's Bank of China (PBoC) announced on Tuesday that it lowered the one-year benchmark bank lending rate by 25 basis points to 4.6%. The central bank hopes with this decision to support the country's economy and to calm down the markets. The interest rate cut would be effective from Wednesday.
One-year benchmark deposit rates were cut by 25 basis point, reserve requirements (RRR) were lowered by 50 basis points to 18% for most big banks.
New reserve requirements would be effective on September 6.
The British Bankers' Association (BBA) released the number of mortgage approvals in the U.K. on Wednesday. The number of mortgage approvals increased to 46,033 in July from 44,802 in June. It was the highest reading since February 2014.
"Savvy homeowners are snapping up competitive deals before an expected increase in interest rates," the chief economist at the BBA, Richard Woolhouse, said.
Name Price Change Change %
FTSE 100 6,005.38 -75.96 -1.25 %
DAX 10,014.42 -113.70 -1.12 %
CAC 40 4,506.4 -58.46 -1.28 %