World shares set for worst week since Feb

Global shares were having their best day in nearly a month on Friday as European and Asian markets recovered from a brutal selloff that still left them set for their worst week since February.

After a partial recovery in Asian shares overnight, European stocks opened higher, with the pan-European STOXX 600 up 0.9 per cent on the day.

Germany’s DAX up 1.1 per cent while Britain’s FTSE 100 gained 0.4 per cent.

S&P stock futures pointed to a rebound in U.S. stocks later in the day, while the VIX volatility index climbed down from an eight-month high.

The MSCI All-Country World index, which tracks shares in 47 countries, was up half a per cent on the day.

“Some traders are cautiously buying back into the market today, but the underlying issues which brought about the sell-off are still relevant,” said David Madden, markets analyst at CMC Markets in London.

The biggest market shakeout since February has been blamed on a series of factors, including worries about the impact of a Sino-U.S. trade war, a spike in US bond yields this week and caution ahead of earnings season.

Shanghai shares bounced 0.8 per cent, recouping earlier losses of 1.8 per cent as cheap valuations drew bargain hunters.

Japan’s Nikkei average rose 0.5 per cent.

“We’re still left with the sense that there has been a significant shift that markets now have to take stock of,” said Chris Scicluna, head of economic research at Daiwa Capital Markets in London.

© RAW 2018

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