Global Stocks Are Making A Comeback While Wall Street Is Still Reeling

Global stocks are trying to climb over the Wednesday rout, with improving futures in Europe and modest gains in Asia. Traders still remain wary due to high volatility and rising bond yields that render the markets unpredictable.

Wall Street opened with low futures, with contracts associated with the Dow Joens Industrial Average shedding 266 points. Investors estimate this number to increase over the course of the pre-market session.

The European Stoxx 600 benchmark climbed 0.65 percent at the start of trading, however, the leaderboard contained some of the region’s smaller companies, a sign that investors are still reeling from the global market rout.

Germany’s DAX index added 67 points (0.52 percent) in the first half hour of trading while Britain’s FTSE 100 fell 0.4 percent from the 2 percent it lost on Tuesday, considered to be the biggest single-day decline since Brexit.

The CAC 40 index in France increased by 0.5 percent to 5,187.38 in early trading.

Japan’s Nikkei 225 index started climbing as soon as trading began, however, it lost its initial gains as the yen surpassed the dollar. Tuesday trading closed at 0.2 percent at 21,645.37. The index shed as much as 7.1 percent on Tuesday before rebounding to close 4.7 lower.

South Korea’s Kospi reported modest losses on Tuesday, as it closed 2.3 lower at 2,396.53. Many investors remain cautious over whether the US Federal Reserve will tighten monetary policy.

“It means that there are investors with a negative view on the market in the long term,” said Oh Hyun-seok, a market analyst at Samsung Securities.

On Wednesday, Australia’s S&P/ ASX 200 surged 0.8 percent to 5,876.80. Over in Hong Kong, the Hang Seng index fell 0.9 percent to 30,323.20. Shanghai’s Composite index shed 1.8 percent to 3,309.26.

Jingyi Pan, a market strategist at IG in Singapore, acknowledged the recent volatility of the global stocks, claiming that the market had been anticipating the setback at the start of the year.

Image Source: Pixabay

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