European stocks rose on Wednesday, looking through declines in Asia and heavy losses on Wall Street, assisted by a rise in the price of oil and positive economic data from China.
There’s not much to get excited about in today’s gains. There’s a general sense that, even if central banks try to do more, they are pushing on a string in efforts to support global growth. The wobble in the bond market is unlikely to be the end of a 30-year bull market, but is giving investors pause for thought on when the bubble will burst.
The FTSE 100 was up by around half-a-percent by mid-morning amid positive economic data and a rise in insurance and mining company shares. Glencore (LON:GLEN) led a rise in the basic resource sector after data showed money supply and bank loan growth in China.
The British pound rose in a warm reaction to UK labour market data. There was a slight rise in benefit claims, but the steady unemployment rate and earnings growth is a far cry from any kind of huge Brexit-induced fallout.
US stocks look set to open on a firmer footing on Wednesday following yesterday’s rout.
Shares of Herbalife (NYSE:HLF) could be set for a higher open following Carl Icahn’s suggestion that the company accused of being a pyramid scheme by Bill Ackman would be “better off private.”
USA pre-opening levels
S&P 500: 4 points higher at 2,131
Dow Jones: 31 points higher at 18,097
Nasdaq 100: 13 points higher at 4,735
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