Chinese rally lifts shares across the globe
Published 10/07/2015 | 02:30
Global markets staged a relief rally as Chinese shares surged in their biggest rebound since 2009.
The move, prompted by massive state intervention, eased at least for the moment concern that the world's second-largest economy is headed for a slump that not even policy makers can prevent.
In the US The Standard & Poor's 500 Index jumped 0.7pc at 12:29 pm in New York, paring an earlier advance of 1.4pc. The Stoxx Europe 600 Index rose 2.2pc as the Shanghai Composite Index rallied 5.8pc.
In Ireland the ISEQ index closed up almost 2pc at 6,166.27, enough to mean names across a broad swath of the Irish market in sectors from banks to food and aviation were stronger on the day.
Demand for safe haven assets ebbed, with the yen dropping from its strongest level against the dollar in seven weeks. Treasuries fell for the first time in five days, reversing yesterday's gain. Commodities rebounded as oil climbed.
"I think investors are realizing that things aren't all that bad here," said Tom Wirth, senior investment officer for Chemung Canal Trust in Elmira, New York. "We're starting to trace out a bottom here and I expect that for the next six months the market will turn higher."
China's selloff halted after regulators late Wednesday banned major stockholders from selling stakes, with more than half the country's listed companies suspended from trading.
While investors weighed the rebound in China, attention in Europe remained focused on Greece with Prime Minister Alexis Tsipras facing a midnight deadline to present a plan that includes spending cuts to secure a bailout.