Global stock markets breathed a sigh of relief yesterday as markets recovered billions of dollars after China’s ‘Black Monday’.
European equities saw strong European investment, with indications that many losses were being recovered after losses incurred on what may describe as the worst day of trading for years.
After gaining 183 points, the FTSE ended the day 3.1% higher, it’s best performance since 2011. This reversed a 10 day run of losses, with much of the 280 point wipe out recovered.
It seems investors were tempted back into the markets after US and Chinese central banks reassured investors about the state of their respective economies.
In a much anticipated move to prevent further damage and stimulate their economy, the People’s Bank of China simultaneously cut interest rates and eased lending rules for banks.
In Shanghai the composite closed under the 3,000 mark for the first time since late 2014, shedding 42pc of its value since its May peak.
The index was the biggest faller in Asia. Japan’s Nikkei plunged another 4pc, while Hong Kong’s Hang Seng recovered from its steepest decline in over 30 years on Monday, to close up 0.75pc.