Europe stocks rally after gains elsewhere
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.