On Thursday and Friday, global markets appeared ready to reverse course from a new year slump [Xinhua]
Global markets appear to be ending the week with the first signs of recovery after a three-week period that can only be described as having taken investors on a roller-coaster ride.
On Friday, London’s FTSE opened up 2.12 per cent to 5,896. In Paris, the CAC 40 opened 3.13 per cent higher to 4,336.
Frankfurt’s DAX opened up 2.3 per cent 9,795.
The resurgence of positive sentiment and calmer nerves came as the word stimulus appeared in major headlines around the world.
China already announced it would lean toward stimulus policies to revitalize its economic engine, but it was the European Central Bank chief Mario Draghi’s statement late Thursday that he would expand quantitative easing in the Eurozone that helped trigger a rally.
In Japan, meanwhile, the Central Bank’s statement that it would increase stimulus pulled the Nikkei from a 13-year low this week to surge nearly 6 per cent to 16,598.53, fuelling an Asian rally.
At press time, China’s benchmark Shanghai Composite Index continued its three-day upward swing with 1.25 per cent gains.
Hong Kong’s Hang Seng Index is up 2.90 per cent – an indication that Chinese markets are confident in Beijing’s interventions to buoy the economy.
China’s growth figures came in at 6.9 per cent for 2015, beating gloomier forecasts that it was actually much lower.
South Korea’s Kospi was up 2.11 per cent, and Australia’s ASX continued a two-day rally to close ip 1.28 per cent.
On Thursday, US stocks pushed upward overcoming investor fears – or as one anslyst described it, market paralysis – ending mostly in gains territory as oil prices appeared to rally.
US benchmark West Texas Intermediate crude rallief from just above $26 a barrel on Tuesday to close above $29 on Thursday at the New York Stock Exchange.
In after hours, it was up 3.79 per cent to $30.79.
Similarily, international benchmark Brent crude was up 4.68 per cent at $30.49 ahead of Friday’s opening trade in London.
Investors are now speculating whether prices bottomed out at $26 and if the worst is over for the energy sector.
Although there is a ways to go before global stocks recover losses since the beginning of the year, the Nasdaq closed up 0.1 per cent Thursday.
The BRICS Post
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