FTSE 100, Dax and Cac rise as hangover sets in after China stock market crash
After making its worst losses since 2003 yesterday, the FTSE rose almost three per cent per cent in mid-morning trading, nudging back above 6,000.
Meanwhile, the Dax rose 3.2 per cent and the Cac rose 3.1 per cent, suggesting that while European markets were nursing a hangover, the worst may be over.
The rebound followed further falls in Chinese markets, with the Shanghai Composite dropping 7.8 per cent and the Shenzhen Composite closing 7.3 per cent down.
Read more: Shanghai shockwave wipes $1.6 trillion from blue-chips
Having initially fought off falls, the Nikkei ended its session just under four per cent down, while Hong Kong's Hang Seng fell a more modest 0.8 per cent down.
The FTSE was buoyed by RSA, whose share price jumped 5.5 per cent to 522p after Zurich tabled a new £5.6bn offer for the insurer, and Poundland, whose shares rose 5.6 per cent after it was given approval to buy 99p Stores (not for 99p).
Even miners rallied, with Antofagasta rising 2.3 per cent to 545p, Rio Tinto rising two per cent to 2,198p and Glencore jumping 1.2 per cent to 139.5p. BHP Billiton, which posted an 86 per cent fall in profits, led the FTSE, with a 5.3 per cent jump in shares.
But there were still concerns about the impact of uncertainty in the Far East.
"China and commodities are still dominating proceedings, with oil and mining companies once again bearing the brunt of poor sentiment, though the banks aren’t far behind," said Laith Khalaf, a senior analyst at Hargreaves Lansdown.
"It was just five months ago investors cheered as the FTSE broke through the 7,000 mark for the first time; it now looks like a very long climb back."