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Stock markets bounce after sell-off | |
(about 4 hours later) | |
Stock markets have risen, a day after billions were wiped off the value of shares amid global market turmoil. | |
London's FTSE 100 index, which measures the share prices of the 100 most valuable companies traded on the London Stock Exchange, was up nearly 1.5%. | |
Other European markets were also higher, and shares in the US were up shortly after trading began. | |
However, investors remain worried over the continuing slide in oil prices and slowing growth in China. | |
In the US, the Dow Jones was up 123.96 points, or 0.8%, at 15,7890.70 in early trade. | |
In the UK, the FTSE 100 rose 83.10 points to 5,756.68, and the share indexes in France and Germany were both up by more than 1.5%. | |
Much earlier, Japan's main share index closed down by more than 2%. | |
On Wednesday, global stock markets suffered hefty losses and London's FTSE 100 ended the day down 3.5%. | On Wednesday, global stock markets suffered hefty losses and London's FTSE 100 ended the day down 3.5%. |
By doing so it entered a "bear market", having fallen 20% from its record high in April last year. | By doing so it entered a "bear market", having fallen 20% from its record high in April last year. |
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 $27.75. | |
US crude was 1% lower on the day, trading at $28.09 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' |
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." | 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." |