Dec 20 Reuters European stock index futures fell on Tuesday after Bank of Japan rattled markets with a surprise policy shift that would allow longterm interest rates to rise more.

Futures on the EURO STOXX 50 index and Germany39;s DAX briefly fell more than 1 each, before steadying at 0.9 declines by 0710 GMT.

The BOJ decided to allow the 10year bond yield to move 50 basis points either side of its 0 target, wider than the previous 25 basis point band, in a move aimed at easing some of the costs of prolonged monetary stimulus.

The policy tweak was widely seen as the beginning of a potential end to Japan39;s ultraloose monetary policy and comes just as hawkish messages from other major central banks last week doused hopes of an end to monetary policy tightening any time soon.

London39;s FTSE 100 index futures dipped 0.5.

Reporting by Amruta Khandekar; Editing by Saumyadeb Chakrabarty

Source Reuters