China cuts key interest rate to 4.35%

China has cut its one-year benchmark interest rate by 0.25 percentage points to 4.35%.

European shares gained ground following the choice, particularly in the taking out sector, and merchandise rose.

The Chinese central bank also cut the ratio of Chinese currency that it expects its banks to hold.

China hopes that looser financial policy, in the shape of cheaper money, will help it hit its growth target of 7% for 2015.

The changes will come into effect on Saturday.