European stocks show resilience to China market fall

European markets went up today, showing resilience to yet another decline on China's key index.

 

The FTSE 100 closed 0.5 per cent higher at £60.75, while the Germany's Dax and France's Cac 40 rose 0.7 per cent and 0.6 per cent, respectively. 

 

 

This was despite a 2.5 per cent fall on the Shanghai Composite, which sent Asian markets tumbling. It was the first day of trading in China since Wednesday, after markets closed on Thursday and Friday as part of a holiday commemorating Japan's defeat in World War II. 

 

It marks a continued downward trend on the Shanghai Composite, which has lost around 40 per cent of its value since mid-June.

 

 

In the UK, The FTSE 100's gains were across all sectors, although two companies stood out as leaders. Copper mining firm Antofagasta was the biggest riser, with shares up 7.53 per cent in value at close. 

 

Glencore also performed very well after it promised to cut debt by a third and issue up to £1.6bn in stock. At close, shares were up 7.02 per cent at £1.31. 

 

The gains made today were a turnaround from Friday, when steep losses of close to three per cent were suffered by European markets. The fall was on the back of increased odds that the US central bank would raise interest rates later in September.