LONDON ( The Deal) -- European markets rose Friday after European Central Bank President Mario Draghi said the bank would "do what we must to raise inflation and inflation expectations as fast as possible."
Although these were considered to be personal remarks rather than firm policy, and there are still real concerns about the right assets for the bank to buy, Draghi said buying government debt would likely lift prices for riskier assets.
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The market also responded positively to news that the People's Bank of China, the nation's central bank, cut interest rates for the first time in two years, reflecting worries over slowing growth in the world's no. 2 economy.
The FTSE 100 was up 0.86% at 6,736.54, while in Paris, the CAC40 was up 1.61% at 4,302.37. In Germany, Frankfurt's DAX index was up 1.89% at 9,662.99.
Britain's Rolls-Royce Holdings (RYCEY) said it won a $5 billion contract to supply Trent XWB and Trent 7000 aero engines to power 50 new Airbus (EADSY) planes ordered by Delta Air Lines (DAL) . The news follows Thursday's announcement that the engine maker has been selected by the French air force to provide its Trent 700 engines to power its Airbus multi-role fuel tanker aircraft. The deals come after a difficult period for the company which has issued a series of profit warnings and been forced to cut staff numbers and even fire engineers.