European stocks closed higher Monday after China’s central bank cut interest rates in a bid to aid its economy amid the coronavirus outbreak.
The Stoxx 600 closed provisionally up more than 0.3%, with the pan-European benchmark hitting a fresh record high. Autos climbed 1.2% to lead gains while tech stocks bucked the risk-on trend to fall 0.3%.
The People’s Bank of China, or PBOC, announced on Monday that it would provide medium-term funding of 200 billion yuan ($29 billion) to commercial lenders and cut its main interest rate by 10 basis points to 3.15%.
The move is intended to shield the economy from the fallout of the coronavirus, which has now infected over 70,000 people and killed 1,770, according to China’s National Health Commission.