European markets bounce back after China rout - business live

Discussion in 'Market News' started by Lily, Jan 5, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Rolling coverage of the world’s financial markets, including weak results from Next and the latest eurozone inflation (at 10am GMT)

    8.43am GMT

    Mining stocks are leading this morning’s rally in London.

    Commodity giant Glencore is up over 4%, as fears over China ease a little (for the moment....)

    London’s FTSE-100 has recovered some of yesterday’s losses at the open, thanks in no small part to the fact that Asian equity markets appear to have stabilised overnight – at least for now.

    The vast majority of blue chips are trading in positive territory although the handful of losing stocks are being dominated by clothing retailers with that trading update from Next this morning providing little reason to get excited about the sector.

    8.19am GMT

    High street chain Debenhams’ shares have fallen by 2% in early trading.

    That reflects concerns that Next’s weak sales over Christmas could be mirrored across the sector. Marks & Spencer are down 0.5%.

    Seeing calls for Next shares to fall 4-5% on open as sales disappoint, M&S & Debenhams also likely to fall as paints dismal picture #retail

    8.14am GMT

    Shares in Next are out of fashion this morning.

    They’re down by 3% at the start of trading, leading the FTSE fallers, as the City digests this morning’s disappointing Christmas trading.

    Next 0.5% fall in retail store sales for the two months to Dec 24. Warning full-year profits set to come in at bottom end of City forecasts.

    Interesting Next not just blaming the weather but also their own stock problems and rivals' catching up with their online capabilities

    #Next kicks off UK retail Xmas reporting season. And it doesn't bode well for what's to come

    8.07am GMT

    Shares are rallying across Europe at the start of trading, as investors recover their nerve after Monday’s heavy selloff.

    In London, the FTSE 100 has jumped by 72 points, or 1.2%, to 6165 points. That claws back almost half of yesterday’s rout, when the blue-chip index shed 148 points.

    In the aftermath of a global sell-off over China growth fears, UK and European stock index futures are taking their cues from the Chinese stock market on Tuesday.

    After an initial wobble, shares in Shanghai and Shenzhen turned positive on Tuesday thanks to an injection of liquidity from the People’s Bank of China.

    7.56am GMT

    High street retailer Next has sent a shiver through the sector this morning, after posting weaker than expected results for the crucial Christmas period.

    Related: Next reports disappointing Christmas after mild autumn

    7.45am GMT

    Spread-betting firm IG is predicting that European markets will bounce back when trading begins in a few minutes, clawing back some of Monday’s losses.

    IG is calling the main markets up around 1%:

    Our European opening calls: $FTSE 6146 up 52 $DAX 10377 up 93 $CAC 4572 up 50 $IBEX 9412 up 99 $MIB 20939 up 205

    7.43am GMT

    It’s been a wild day in China, as Beijing tries to prevent a repeat of Monday’s rout.

    Related: China bolsters markets with $20bn injection and hints at curbs on share sales

    7.25am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    It’s day two of the trading year, and investors around the globe will be hoping for a better performance than on day one.

    Watching a raccoon accidentally dissolve his candyfloss in a puddle has really put my troubles in perspective.

    Related: Jitters over China manufacturing slowdown wipe £38bn off FTSE 100

    Continue reading...

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