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.