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European stocks extend gains after ECB rate cut
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By Polya Lesova

LONDON (MarketWatch) -- European stock markets extended gains on Thursday after the European Central Bank decided to lower its benchmark interest rate to 1.25% from 1.5%. Most economists had expected the ECB to remain on hold, though some thought the central bank may opt to reduce rates. The Stoxx Europe 600 index XX:SXXP +2.48% rallied 2.3% to 242.8 and Germany's DAX 30 index DX:DAX +3.72% advanced 3.1% to 6,148.

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