European shares inch higher as Chinese stocks rebound
Published 08/01/2016 | 10:20
European shares inched higher on Friday, signalling a possible stabilisation from this week's earlier sell-off as Chinese stocks rose after the country's circuit breaker mechanism was axed to calm investor sentiment.
Just after 8am, the pan-European FTSEurofirst 300 index was up 0.2 percent but was still on track for its steepest weekly drop since late August. The euro zone's blue-chip Euro STOXX 50 index also advanced by 0.1 percent.
China's major stock indexes rose sharply on Friday after Beijing ditched a circuit breaker mechanism that had halted trading twice this week, and had been blamed for exacerbating the market sell-offs it was designed to limit.
Mining stocks were the main beneficiaries of the rebound after steep losses in the previous session. Mining stocks are particularly sensitive to the state of the Chinese economy, as China is the top global consumer of metals.