Top job-loss at ASOS as market rebound quickly fades
01:00, 02 September 2015
· By Giorgio Benetti
Suspected state-supported buying that gave Chinese markets a late lift has done little to support European shares which opened higher but slid back mid-morning
• European stocks rebound didn’t last long
• Oil plunge weighs on FTSE
• Higher open in the US only scratches the surface
European stocks rebound didn’t last long
At the moment there’s a vicious circle of volatility; the wild price swings have put investors on edge, causing them to act more rashly which leads to more violent prices moves.
The German DAX and French CAC swung from early gains to losses after apparent state-supported buying from brokers failed to help the Chinese benchmark Shanghai Composite close higher. It’s another sign of fading confidence in the ability of Chinese authorities to contain the rout.
Oil plunge weighs on FTSE
The 8% plunge in oil prices yesterday is weighing on the FTSE 100 with heavily weighted BP, Shell and BG Group all seeing losses. Ashtead Group is top riser on the benchmark index after strong results while the announced departure of ASOS founder and CEO Nick Robertson sent shares sharply lower.
Higher open in the US only scratches the surface
US stocks look set for a higher open on Wednesday ahead of the release of unemployment and Fed survey data. The expected 100 point rise in the Dow Jones only scratches at the surface of the 469 point drop yesterday and is a sign of uncertainty and fear rather than confidence in higher prices.
Costco and Delta Airlines report earnings on Wednesday
S&P 500: 11 points higher at 1,924
Dow Jones: 100 points higher at 16,158
Nasdaq 100: 32 points higher at 4,174
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