The FTSE 100 rebounded 1.1% in early trading this morning, following its worst New Year opening in 16 years, as Chinese indices managed to stem falling share prices seen on Monday. The UK’s blue-chip index was up to around 6,160 points by 8.30am this morning, led by supermarket giant Tesco, which was up 4.6% to 148.8p, but the index fell back slightly to 6,138 points minutes later.
FTSE 100 stocks climbed following Chinese indices reporting smaller falls overnight after up to 7% losses on Monday.
The Shanghai Composite index fell just 0.3% to 3,287 points upon closing and the Shenzhen Composite closed down 1.9% at 2,079 points.
On Monday, China suspended of trading of shares on the Shanghai Composite index after it declined by more than 5% to ultimately close at a loss of 7%.
This led the FTSE 100 to tumble 2.4% in its New Year session, its worst New Year opening since 2000.
Other European indices also began to claw back ground, with Germany’s DAX up 0.8% to around 10,362 points after suffering its biggest drop since Black Monday yesterday, and France’s CAC 40 up 1% to 4,568 points after losing 2.47% in the year-opening session.
[Source: Investment Week - Daniel Flynn - January 5, 2016]
