Europe stocks rally af­ter gains else­where

The China Post - - BUSINESS INDEX & -

Europe’s main stock mar­kets ral­lied Thurs­day on eas­ing main­land China wor­ries, inspired by bumper gains overnight on Wall Street and ear­lier in Asia.

Global eq­ui­ties were also boosted af­ter one of the most se­nior Fed­eral Re­serve of­fi­cials de­clared Wed­nes­day that re­cent China tur­moil had weak­ened the case for a U.S. in­ter­est rate rise in Septem­ber.

In Thurs­day morn­ing deals, Lon­don’s bench­mark FTSE 100 in­dex won 2.12 per­cent to 6,106.70 points, Frank­furt’s DAX 30 jumped 2.75 per­cent to 10,272 and the CAC-40 in Paris won 2.45 per­cent to 4,611.10 points.

Trad­ing Higher This Morn­ing

“Euro­pean eq­ui­ties are trad­ing higher this morn­ing, re­ceiv­ing a boost from firmer mar­kets overnight in the U.S. and Asia,” said an­a­lyst Markus Hu­ber at Lon­don­based bro­ker­age Pere­grine & Black.

“For now there is quite a bit of re­lief that stocks in China are fi­nally stag­ing a mod­er­ate and long awaited bounce back.”

Asian eq­ui­ties took their cue from Wall Street on Thurs­day, ral­ly­ing af­ter days of wild swings, but deal­ers cau­tioned that the specter of the slow­ing Chi­nese econ­omy meant more tur­bu­lence lay ahead.

Hong Kong shares hur­tled 3.60 per­cent higher, Tokyo gained 1.08 per­cent, Syd­ney added 1.17 per­cent and Seoul rose 0.73 per- cent.

New York snapped a six-day los­ing streak Wed­nes­day af­ter Wil­liam Dud­ley, the head of the New York branch of the Fed, said China tur­moil had weak­ened the ar­gu­ment for a Septem­ber rate rise.

“The slow­down in China could lead ... to a slower global growth rate and less de­mand for the U.S. econ­omy,” he said.

“We’re con­cerned about the out­look, how is the econ­omy go­ing to per­form in the fu­ture.”

The S&P 500 surged 3.90 per­cent, the Dow Jones In­dus­trial Av­er­age added 3.95 per­cent, and the Nas­daq Com­pos­ite was up a heady 4.24 per­cent, with sen­ti­ment bol­stered by up­beat U.S. durable goods or­ders.

Con­cerns the U.S. could raise rates as early as next month have been heap­ing pres­sure on world mar­kets al­ready ner­vous about signs that China’s econ­omy — which ac­counts for some 13 per­cent of global out­put — is slow­ing more than thought.

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