European shares end week higher after BOJ rate move
(Amends headline to reflect close of markets)
* FTSEurofirst notches up second straight week of gains
* Sabadell rises after strong results, Italy banks up
* Basic resources underperform on steel market warning
By Danilo Masoni and Atul Prakash
MILAN/LONDON, Jan 29 (Reuters) - European equities ended the week on a high after the Bank of Japan stunned markets on Friday by voting narrowly to introduce negative interest rates in a bid to revive inflation.
Equities were also underpinned by hopes the U.S. Federal Reserve would go slow on future interest rate hikes following weaker-than-expected GDP data from the world's largest economy.
Japan's central bank said it would charge 0.1 percent for excess reserves parked with it, an aggressive deflation-fighting policy pioneered by the European Central Bank.
"The BOJ decision was a massive surprise; it's further money printing from Japan on a massive scale after having told the markets that they're not doing it. That triggered European investors to push the risk-on button on," Will Hamlyn, investment analyst at Manulife Asset Management said. Continuación...