China has reduced its main interest rate to boost growth in its economy. People's Bank of China cut its key lending rate by 0.25 percentage points to 4.6 per cent in an effort to calm stock markets after two days of turmoil. It is the fifth interest rate cut since November. The move has boosted global share prices further, with London's FTSE 100 jumping 3 per cent, while Germany's Dax gained 5 per cent and the Paris Cac rose by 4.1 per cent. Other European markets, including Lisbon, Madrid, Moscow and Milan, all closed sharply higher.