Global Stocks

European stocks booked a solid gain Thursday as the Bank of England embarked on an aggressive stimulus plan that includes its first rate cut in seven years and a revival of a bond-buying program.

The Stoxx Europe 600 SXXP, +0.67% rose 0.7% to close at 337.84 as all sectors rose, led by the financial SXFR, +0.63% and oil and gas SXER, +1.52% groups.

The pan-European index extended its reach after the Bank of England, spurred by Gov. Mark Carney, cut the benchmark rate by 25 basis points to a record low 0.25% and expanded its quantitative-easing program to £435 billion ($579 billion) from £375 billion. It also plans to start buying £10 billion in corporate bonds and make billions of pounds available in ultracheap loans to banks through its new Term Funding Scheme.

U.S. stocks relinquished modest gains to end mostly flat Thursday as investors awaited the closely watched jobs report due Friday. An earlier bounce for equities, following the Bank of England's decision to cut its key interest rate for the first time in seven years faded as Wall Street wrestled with mixed economic reports.

The S&P 500 index SPX, +0.02% closed virtually flat at 2,164.25, with the tech and materials the only two sectors finishing in positive territory.

The Dow Jones Industrial Average DJIA, -0.02% ended near break-even at 18,352.05, with the blue-chip benchmark limited by a 1% fall in shares of Walt Disney Co. DIS, -0.97% offsetting a 1% gain in Visa Inc. V, +0.98%

The Nasdaq Composite Index COMP, +0.13% closed up 6.51 points, or 0.1%, at 5,166.25.

Asian shares followed global stock markets higher on Friday after the Bank of England launched a larger-than-expected post-Brexit stimulus package that sent the British pound tumbling.

An overnight rally in crude oil prices also sharpened risk appetites, but some caution before the July U.S. non-farm payrolls report later on Friday limited gains.

Japan's Nikkei .N225 advanced 0.3 percent, on track for a loss of 1.6 percent for the week.

China's CSI 300 index .CSI300 climbed 0.1 percent, set to end the week flat. The Shanghai Composite .SSEC was little changed, poised for a 0.1 percent weekly gain.