Fu­tures up sharply a day af­ter global rout

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

US stock in­dex fu­tures rose sharply on Tues­day in an­tic­i­pa­tion of bar­gain hunt­ing a day af­ter Wall Street turned in its worst per­for­mance in four years and as China cut in­ter­est rates for the sec­ond time in two months.

All three ma­jor Wall Street in­dexes fell into cor­rec­tion mode over the past two trad­ing days. An in­dex is said to be in cor­rec­tion when it closes 10 per­cent or more be­low its 52-week high. "I think it's too early to de­clare the worst is over," said Piotr Matys, an emerg­ing mar­kets ex­pert at Rabobank in Lon­don. "The way I see it is that this is a bit of a tech­ni­cal cor­rec­tion af­ter things got a bit over­sold. The move by China's cen­tral bank, which also re­laxed re­serve re­quire­ments for the sec­ond time in two months, came af­ter Chi­nese stocks slumped 8 per­cent on Tues­day. On Mon­day, the Dow Jones in­dus­trial av­er­age .DJI briefly slumped more than 1,000 points - its steep­est in­tra­day fall ever - and the S&P 500 recorded its worst day since 2011. Ap­ple's (AAPL.O) shares were up 6 per­cent at $109.38 in pre­mar­ket trad­ing.

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