European markets are absolutely jumping at the open

After a rough start to the week, stocks are finally looking solid.

The S&P 500 had its biggest rally since 2011 overnight and the Shanghai Composite, whose collapse on Monday started the rout of the last couple of days, is up over 5%.

As a result, European markets have opened higher this morning — and strongly too:

  • The FTSE 100 is up 1.8%;
  • Germany’s DAX is 2.3% higher;
  • France’s CAC 40 is 2% higher;
  • Spain’s IBEX is up 2%.

Here’s the Euro STOXX 50, which is up 2.3%. It represents the 50 biggest sector leaders in Europe and gives a general feel for markets on the continent right now:

Connor Campbell, financial analyst at SpreadEx, says:

Of course, there is a long way to go until the end of the day (and the week, given the muted Wednesday trading that followed ‘Turnaround Tuesday’) and there could still be a lot more volatility left. However, Tuesday’s gains came despite the continued freefall of the Chinese markets; today’s are following a second positive session for the Shanghai Composite and a sustained surge by the US markets, suggesting there might be a bit more weight behind the sea of green currently lighting up the European trading floors.

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