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London - A surprise rate cut by the European Central Bank sent euro zone shares to a five-year high on Thursday as traders bet a weaker euro and easier lending conditions would help revive the region's economy and boost demand for stocks.
The Euro STOXX 50 index of eurozone blue chips rose 1.3% to 3 095.51 points after the ECB decision, hitting a level not seen since September 2008.
The ECB was expected to leave interest rates unchanged and investors will now listen for any hint at a press conference starting at 15:30 that the bank may offer more cheap loans to banks next year to head off a rise in interbank lending rates.
"This will give European exporters much-needed breathing space, with the euro currency finally falling back," David Thebault, head of quantitative sales trading, at Global Equities, in Paris.
Among exporters, tyre-maker Continental rose 5.6% and personal goods manufacturer Adidas rose 3.9%, extending gains after releasing results.
Eurozone banks, which are heavily dependent on the health of the region's economy and conditions in the funding market, rose 3.4%.
They were led by Commerzbank, up 12% after it reported an unexpected jump in third quarter profits.
It was the top riser on the pan-European FTSEurofirst 300 , which also hit a fresh five-year high and was up 1.3% at 1 313.59 points.
