RELIEF FOR EQUITY INVESTORS

ROBUST corporate results helped world stock markets surge yesterday, bringing some relief to jittery investors after a shocking October that saw equities suffer one of their worst drops since the financial crisis 10 years ago. Strong earnings reports in the US and Europe spurred a broad rally, despite data showing that China’s factory growth slowed to its lowest in two years. Investors rushed into the dollar, sending it to a 16-month high while the offshore Chinese yuan languished at a 22-month low. The MSCI world equity index, which tracks shares in 47 countries, rose 0.6 percent, but remains 8.2 percent down for October, its worst month since 2012. The index has dropped 13 percent from highs in January. Despite the broad rally, investors remained cautious. “I’m still of the belief that we are in for more downside and rallies are for selling,” said Neil Campling, co-head of the global thematic group at Mirabaud Securities. | Reuters