28th July 2015
European stocks rose on Tuesday (July 28th), shrugging off concerns after another tumultuous ride for Chinese equities.
The Shanghai Composite Index fell 1.7 per cent, extending losses after it fell by more than eight per cent in the previous session.
It was not quite the rout some had feared and a more optimistic mood fed into European trading. The FTSEuroFirst 300 index of leading shares rose more than one per cent, while the DAX was up 1.5 per cent.
In London, the FTSE 100 was trading up one per cent, as BP shares rose by more than two per cent despite a deep reduction in profits because of low oil prices.
Brent crude dropped to a six-month low on ongoing concerns about a supply glut, while US light crude fell below $47 a barrel.
Meanwhile, sterling was up against the dollar as official data showed the UK economy grew by 0.7 per cent in the second quarter, fuelling speculation the Bank of England will move to hike rates sooner this year.
Graham Spooner, investment research analyst at The Share Centre, notes that at long last, economic output per person has reached the level achieved before the financial crisis.
He adds: “The UK economy has now grown for ten straight quarters, and bounced back from its weakness at the start of the year: This continued growth trend may start to focus investors’ attention towards the possibility of a rise in interest rates and it should also help to underpin the recent strength of sterling.”
Looking ahead to the open on Wall Street, investors will have their eyes on the latest tech stock earnings report as Twitter updates the market on its second quarter performance. Facebook follows suit on Wednesday as we enter peak earnings season.
US stocks fell on Monday after China’s equity rout. The Dow closed near a six-month low, while the S&P 500 fell below its 200-day moving average of 2,064.14 before closing slightly above it. The Nasdaq shed one per cent.
Investors are also looking towards the start of the Federal Reserve’s two-day policy meeting on Tuesday.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.