Shares on Wall Street rose and many Asian and European markets staged a recovery after this week’s global stock market rout, but analysts warned: “We might not be out of the woods.”
The FTSE 100 index in London rose 18 points, or 0.2%, on Tuesday to close at 8,026.69, after losing 166 points, or 2%, on Monday, its biggest one-day points drop in more than a year.
Germany’s Dax edged up by 0.1%, although France’s Cac slipped by 0.3% after earlier rising, and the Italian bourse slid by 0.6%.
On Wall Street, the Dow Jones closed up by 0.8%, while the broader S&P 500 rose by 1.5%. The Nasdaq climbed 1%, after Wall Street’s worst day in almost two years on Monday.
The Nikkei 225 index in Tokyo closed 10.2% higher – up 3,217 to 34,675, a record daily points rise – as investors bought into bargains after the 12.4% rout the previous day that triggered a fall in European and US markets. The Nikkei experienced its biggest drop in 37 years on Monday.
Other markets in Asia also recovered after the rollercoaster ride at the start of the week. South Korea’s Kospi index gained about 3%, while Australia’s ASX200 added 0.4% and the Shanghai and Shenzhen markets in China rose by 0.2% and 0.8% respectively.
Hong Kong’s Hang Seng was among a small number of markets that recorded further modest losses, slipping by 0.3%.
“We might not be out of the woods yet,” said Fawad Razaqzada, a market analyst at City Index, “though conditions could stabilise as the week progresses….
