European stocks pared gains but closed higher overall Thursday due to growing hopes that falling interest rates could help the global economic outlook and in turn the performance of major indexes.

The IMF will offer as much as $100 billion in a new kind of loan to countries battered by the financial crisis but not on the brink of disaster.

Risk appetite continued to recover in Europe, pushing the dollar and the yen lower and helping the euro to rise.

China cut rates for the third time in six weeks, intensifying efforts to shore up confidence as the global slowdown takes an increasing toll on its companies.

European stocks rose in early trading amid signs central banks around the globe will act further to prop up market confidence and lower borrowing costs. London advanced 0.45%, while Frankfurt gained 1.8%.

The U.K. financial-sector bailout plan, used as a model around the world, is looking increasingly expensive for the government that launched it.

Asian markets were rising despite a tepid close on Wall Street, with some cheer at moves by global central banks to shore up markets and bolster the economy.

Bank of China offered new signs of a weakening domestic economy and deteriorating investment climate as its earnings growth continued to slow in the third quarter.

Sumitomo Mitsui cut its profit forecast as loan losses increased, in a sign that conditions are getting worse for Japanese lenders.

Porsche has moved closer to securing control of Volkswagen through a stealth strategy relying on sophisticated derivative instruments.

MF Global said CEO Kevin Davis has resigned from his post and the board after 17 years with the company. President and COO Bernard Dan will succeed him.

Hypo Real Estate said it has applied for a guarantee by the German government's rescue fund to back up short-term liquidity needs.