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Friday, January 8, 2016

European Markets higher after Chinese Shares Rise

It was a week in which trading in China's markets was twice halted by a circuit breaker, before the authorities decided to suspend the measure.
The Shanghai Composite closed 2% higher on Friday, but still ended the week down by about 10%.

 Investors look at computer screens showing stock information at a brokerage house in Shanghai, China,
In London, the FTSE 100 was up 55.4 points, or 0.93%, at 6,009.4.
In Frankfurt, the Dax was up 1.0%, while the Cac 40 in Paris was up 0.7%.
On Thursday, markets in Europe and the US recorded steep losses after trading in China's stock markets closed within the first 30 minutes.

 Trade in China was volatile again on Friday, the first day since the suspension of the circuit breaker.
The Chinese central bank also took steps to strengthen the yuan after the currency's weakness was taken as a sign of problems for the economy.
Connor Campbell, an analyst at Spreadex, said the FTSE's rise on Friday was "nothing to write home about, especially in the context of the near 6% plunge the UK index has witnessed since Monday".
However, he added, it did mark an important moment of calm that has been largely absent since 2016 got underway, something that could help matters heading into next week.

Market attention now turns to the US unemployment figures, which are due out later on Friday.
"It takes quite something to relegate the US employment report to a footnote in this week's trading activity, but the China induced volatility seen over the past few days appears to have done the trick," said Michael Hewson from CMC Markets
.
"As we come to the end of the week European equity markets look on course to post some of the worst weekly losses since the previous China induced volatility, seen last August."

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