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European shares rise near record high after China measures

European shares rise near record high after China measures

European shares rose during Monday's trading to be close to record levels as the measures announced by China to limit the economic impact of the coronavirus managed to calm markets.

As of 08:53 GMT, the Euro STOXX 600 surged 0.21 percent to 431.62, it remained just below a record high of 432.26.

France CAC 40 was 0.29 percent up at 6,074.01, and Germany’s DAX ascended 0.16 percent to 13,763.12. In Britain, FTSE 100 increased by 0.34 percent to 7,434.21.

The rise in European shares was the result of efforts by China to fight the corona virus by cutting the lending rate to support the Chinese economy.

The People's Bank of China announced today that it will provide medium-term financing of 200 billion Yuan ($29 billion) to commercial lenders and cut the key interest rate by 10 basis points to 3.15 percent.

China’s finance minister also mentioned that the country is targeting new tax cuts to stimulate the world’s second-biggest economy.

Regarding Coronavirus, a recent survey released by China's National Health Commission on Monday revealed that an additional 105 people had died and 2,048 new people had been confirmed to have been infected by the end of February 16.

This means that the total number of victims in China has reached 1,770 dead and 70,548,000 cases of deadly virus infection.

Last week, China made adjustments in the way cases were calculated to worsen the number of infected people, and announced the elimination of 108 double-count deaths.

Later in the day, movements could be weak on the back of the closure of U.S. financial markets due to the Presidents' Day.

Eyes will focus this week on PMI data from major economies, which may give clues about the impact of the coronavirus on economic activities in February.

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