Wall Street breaks six-day losing streak, Chinese stocks down again
US stocks rally with 619-point rise in the Dow. Asia rises, Europe fall.
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Stocks on Wall Street rallied strongly for their first gain in six sessions as world markets continued to seesaw after a further fall in China.
On Tuesday, the Dow Jones Industrial Average spent most of the day sharply higher before tumbling 1.3% in the final minutes of trading.
At the close on Wednesday, the Dow was up 619.07 points, or 3.9% higher, at 16,285.51, the biggest jump since November 2011.
The S&P 500 rose 72.90 points, or 3.9%, to 1940.51 while the Nasdaq Composite Index was up 191.05, or 4.2%, to 4697.54.
Concerns about economic growth in China have overshadowed the US market and has not gone unnoticed by the Federal Reserve.
New York Fed President William Dudley said the case for a rate hike in September is “less compelling” given recent international developments and volatility in financial markets.
Earlier, European and Asian markets produced mixed results.
Chinese markets had another volatile session as fresh measures to ease monetary policy late on Tuesday failed to settle investors’ nerves.
China’s central bank cut interest rates and flooded its banking system with liquidity via a cut to banks’ reserve ratio requirements.
The Shanghai Composite Index swung between gains and losses before closing 1.3% lower.
Elsewhere in Asia, most markets rose despite the losses in China. Tokyo shares posted their biggest percentage point gain since last October, with the Nikkei Stock Average finishing up 3.2%.
The pan-European Stoxx Europe 600 index ended down 1.8%. It gained 4.2% on Tuesday and has fallen more than 8% over the past week.
Meanwhile, new data show the US economic recovery remains intact.
Orders for durable goods rose 2% in July from a month earlier, while consumer confidence and new home sales also improved.
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Nevil Gibson
Thu, 27 Aug 2015
Thu, 27 Aug 2015
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Wall Street breaks six-day losing streak, Chinese stocks down again
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