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European markets stabilise after falls | European markets stabilise after falls |
(about 2 hours later) | |
European markets have opened slightly higher, a day after global turmoil saw billions wiped off the value of shares. | European markets have opened slightly higher, a day after global turmoil saw billions wiped off the value of shares. |
London's benchmark FTSE 100 share index, which measures the share prices of the 100 most valuable companies traded on the London stock exchange, was up 0.5% in the opening minutes. | |
Earlier, Japan's main share index closed down by more than 2%. | |
Investors remain worried over the continuing slide in oil prices and slowing growth in China. | Investors remain worried over the continuing slide in oil prices and slowing growth in China. |
On Wednesday, global stock markets suffered hefty losses and London's FTSE 100 lost 3.5%. | |
It has now entered a "bear market", having fallen 20% from its record high in April last year. | |
But in the first few minutes of trade on Thursday, the FTSE 100 was up 31.78 points at 5,705.36. | But in the first few minutes of trade on Thursday, the FTSE 100 was up 31.78 points at 5,705.36. |
Oil market | Oil market |
Oil prices remained weak on Thursday, having hit their lowest levels since 2003 in the previous session. | Oil prices remained weak on Thursday, having hit their lowest levels since 2003 in the previous session. |
A brief rally in crude prices quickly ran out of steam, and after climbing back above the $28-a-barrel mark, Brent crude fell back to $27.79. | A brief rally in crude prices quickly ran out of steam, and after climbing back above the $28-a-barrel mark, Brent crude fell back to $27.79. |
US crude was trading at $28.23 a barrel, having fallen below $27 on Wednesday. | US crude was trading at $28.23 a barrel, having fallen below $27 on Wednesday. |
Crude oil prices have been falling since mid 2014, but oil-producing countries have maintained output despite the decline, contributing to the excess supplies on the market. | Crude oil prices have been falling since mid 2014, but oil-producing countries have maintained output despite the decline, contributing to the excess supplies on the market. |
Earlier in the week, the International Energy Agency warned that oil markets could "drown in oversupply" in 2016. | Earlier in the week, the International Energy Agency warned that oil markets could "drown in oversupply" in 2016. |
'Good shape' | 'Good shape' |
In Asia, Japan's Nikkei 225 share index closed down 2.4%, while China's Shanghai Composite ended the day down 3.2%. | In Asia, Japan's Nikkei 225 share index closed down 2.4%, while China's Shanghai Composite ended the day down 3.2%. |
On Wednesday, US shares had also been hit, with the Dow Jones closing 1.6% lower after a volatile trading day. | On Wednesday, US shares had also been hit, with the Dow Jones closing 1.6% lower after a volatile trading day. |
However, Patrick Thomson from JP Morgan Asset Management told the BBC that investors should not panic. | However, Patrick Thomson from JP Morgan Asset Management told the BBC that investors should not panic. |
"If you look at the US economy particularly, that is actually in pretty good shape," he said. | "If you look at the US economy particularly, that is actually in pretty good shape," he said. |
"You look at all of the data coming out recently, clearly growth is a little muted and corporate earnings are somewhat lower than expected due to energy prices and the strong dollar, but underlying fundamentals, particularly the US consumer, is in very good shape." | "You look at all of the data coming out recently, clearly growth is a little muted and corporate earnings are somewhat lower than expected due to energy prices and the strong dollar, but underlying fundamentals, particularly the US consumer, is in very good shape." |
That message was echoed by analysts Capital Economics, which said: "Despite the prevailing gloom about the world economy, we think global growth will pick up from around 2.5% last year to 3% in both 2016 and 2017, using our own estimates for China." |