LONDON (AFP) 

Europe's main stock markets rallied at the start of trading Thursday after the US Federal Reserve's first interest-rate cut in more than four years.

London's FTSE 100 index won 0.9 per cent to 8,330.62 points, with analysts forecasting that the Bank of England would maintain British borrowing costs at 5.0 per cent in a decision due later in the day.

In the eurozone, the Paris CAC 40 index jumped 1.4 per cent to 7,551.65 points and Frankfurt's DAX advanced 0.9 per cent to 18,882.53.

The Fed cut its key lending rate by 50 basis points Wednesday with US inflation easing towards the central bank's long-term two-percent target.