(Wall Street Journal) – A recovery in global markets gained steam Thursday after concerns about slowing growth in China triggered a rout earlier this week.
U.S. stock futures and shares in Europe and Asia rose sharply, building on a rebound that began Wednesday after reassuring comments from central bankers and positive U.S. economic data.
Futures indicated an opening gain of 1.1% for the S&P 500 after U.S. stocks snapped a six-day losing streak Wednesday. Changes in futures, however, don’t necessarily accurately reflect moves after the opening bell.
The Stoxx Europe 600 was 2.8% higher by late morning and Germany’s DAX advanced 3.0%. The Shanghai Composite Index led Asian markets higher, closing up 5.3% after five consecutive days of losses.
“It certainly looks calmer but it’s hard to know how sustainable these moves are,” said Patrik Schöwitz, a global multiasset strategist at J.P. Morgan Asset Management, which has around $1.8 trillion under management globally.
“It’s definitely too early to say that the latest bout of volatility is over,” he said.
On Wednesday, Federal Reserve Bank of New York President William Dudleysaid the case for a September rate increasehas grown “less compelling” given the turmoil in markets around the world, reassuring investors who may have been concerned that higher rates would put additional strain on markets at a volatile time.
