ByBridgeNews European equities were boosted this morning after the U.S. Federal Reserve's unexpected decision to cut interest rates produced strong rallies on Wall Street. The FTSE-100 benchmark index was up 2.44% at 6,187.30 towards midday in London, off an early high of 6195.30. In Paris the CAC-40 Index was up 2.40% at 5,820.70. Germany's Dax index, which was still trading when the rate cut was announced and made strong gains on the news, was down 0.10% at 6,428.60. The European gains were led by technology and telecoms stocks, as they recouped some of the losses of recent weeks. LM Ericsson AB was up more than 14%, Colt Telecom Group 17% and ARM Holdings 18%. The Federal Reserve cut its key Fed funds interest rate by 50 basis points to 6% Wednesday amid growing concern that U.S. economic growth is slowing. This is the first time the central bank has cut interest rates outside a regular scheduled meeting since the Asian financial crisis in 1998. The Nasdaq Composite index surged 14.2% as a result, its largest-ever percentage gain, and the Dow Jones Industrial Average jumped 2.8%. "It's very good news in the immediate term as it shows (U.S. Federal Reserve Chairman Alan) Greenspan is willing to react to the needs of the market; he's in tune with the needs of the market," one London-based dealer said