Global stock markets on Thursday, December 7, made a rebound amid a broader recovery in global risk sentiment.
The MSCI World Index, which tracks shares in 47 countries, was up 0.1 percent. Futures markets indicated a positive open for Wall Street. ESc1
European stock markets appeared to take their cues from a general recovery in tech stocks overnight in Asia and Wall Street, but they had turned negative by midday in London as the healthcare sector weighed.
The pan-European STOXX 600 was last down 0.1 percent.
Sylvain Goyon, an equity strategist at France’s Natixis, said the recent sell-off in tech shares was not driven by a change in the fundamentals and probably wouldn’t last long.
“The key drivers of the industry are still there”, he said, arguing that a number of investors had just decided, as year-end neared, to cash in some profits from tech stocks, which have outperformed the market, and reinvest in cheaper financial shares, which are set to benefit from the U.S. tax cuts plan.
Oil rose in a sign that investors are wary of pushing the market lower after an unexpectedly large rise in U.S. stocks of refined products that has increased concern about the demand outlook. [O/R]
U.S. West Texas Intermediate crude futures CLc1 traded at $56.15 per barrel in European trade, up 0.4 percent on the day.
Brent futures LCOc1 gained nearly 0.7 percent to $61.62 per barrel.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.2 percent as some technology bellwethers rebounded, with Tencent (0700.HK) rising over 3 percent and Alibaba (BABA.K) more than 2 percent.
In Japan, the Nikkei .N225 jumped 1.5 percent, recouping much of its 2.0 percent loss the previous day, which was its biggest fall since late March.
Copper rose as bargain hunters took advantage of recent losses, but analysts expect further downward pressure due to weaker demand from China.
Copper CMCU3 traded at $6,572 a tonne, up 0.2 percent on the day and above a two-month low of $6,507.5 touched on Tuesday.