As investors shrugged off weaknesses in the Chinese Stock and commodity markets, prices of stock have risen thanks to better earning as well as on-going merger activities, Europe has finally come out of the bear grip and has managed to break free of its five day losing streak.
Oil on the other hand, fell to its four month low with China’s benchmark stock index falling for three consecutive days. Markets in the developed economies however have however recovered from their losing streaks.
Early European trading saw the FTSEuroFirst 300 index rise by 0.5% to 1,537 points. The index is made up shares of leading European business houses. Mirroring this rise, France’s CAC 40, Germanys DAX and Britain’s FTSE 100, all rose by, around, 0.5%. S&P, on Wall Street too reported a similar rise.
"The latest count on our earnings monitor shows earnings-per-share beats at 76 percent," said Jim Reid, market strategist at Deutsche Bank.
RSA Insurance Group, were amongst the main movers as it surged ahead by 12.9%, with Zurich Insurance closely following its lead. The forward momentums can be attributed to Zurich Insurance’s bid for the RSA Insurance group, which has a market capitalization of 4.4 billion pounds, which amounts to $6.85 billion.
Although earlier MSCI’s broadest index of Asia-Pacific shares outside of Japan had ended with 0.2% rise, it however has had a correction and fell by 0.1%. Incidentally, the MSCI’s broadest index of Asia-Pacific shares has touched its lowest level since 9th July 2015.
There however seems to be no end to the fall of China’s stock market. Despite its earlier fall by 8.5%, it plunged once again by 1.7%. In what could be seen as a roller coaster ride, the Chinese share market plunged by a third of the value of its index and then rose by a quarter, to again fall, in what can be seen as its biggest one-day plunge, since 2007.
Although Beijing has been monitoring its markets, authorities have announced that they will further step up efforts to shore up the market which will hopefully sooth the nerves of western markets as well.
"The recent debasement seems to have revived hopes of having the central bank putting more money on the table, not only to support the stock prices but to prevent stock price volatility from hitting the real economy," said Ipek Ozkardeskaya
Source(s): Reuters.com
Oil on the other hand, fell to its four month low with China’s benchmark stock index falling for three consecutive days. Markets in the developed economies however have however recovered from their losing streaks.
Early European trading saw the FTSEuroFirst 300 index rise by 0.5% to 1,537 points. The index is made up shares of leading European business houses. Mirroring this rise, France’s CAC 40, Germanys DAX and Britain’s FTSE 100, all rose by, around, 0.5%. S&P, on Wall Street too reported a similar rise.
"The latest count on our earnings monitor shows earnings-per-share beats at 76 percent," said Jim Reid, market strategist at Deutsche Bank.
RSA Insurance Group, were amongst the main movers as it surged ahead by 12.9%, with Zurich Insurance closely following its lead. The forward momentums can be attributed to Zurich Insurance’s bid for the RSA Insurance group, which has a market capitalization of 4.4 billion pounds, which amounts to $6.85 billion.
Although earlier MSCI’s broadest index of Asia-Pacific shares outside of Japan had ended with 0.2% rise, it however has had a correction and fell by 0.1%. Incidentally, the MSCI’s broadest index of Asia-Pacific shares has touched its lowest level since 9th July 2015.
There however seems to be no end to the fall of China’s stock market. Despite its earlier fall by 8.5%, it plunged once again by 1.7%. In what could be seen as a roller coaster ride, the Chinese share market plunged by a third of the value of its index and then rose by a quarter, to again fall, in what can be seen as its biggest one-day plunge, since 2007.
Although Beijing has been monitoring its markets, authorities have announced that they will further step up efforts to shore up the market which will hopefully sooth the nerves of western markets as well.
"The recent debasement seems to have revived hopes of having the central bank putting more money on the table, not only to support the stock prices but to prevent stock price volatility from hitting the real economy," said Ipek Ozkardeskaya
Source(s): Reuters.com