Markets & Investing
European Stocks Snap 3-Day Losing Streak
16 Oct 2015
European stocks rebounded sharply on Thursday, snapping a three-day losing streak amid signs that a slowing global economy would persuade the US Federal Reserve to delay raising interest rates until next year.
Stocks were up throughout Europe, with all of the major indices reporting gains. London’s FTSE 100 rose 1.1%. The German DAX added 1.6%. The major averages in Paris and Madrid rose 1.3% and 0.6%, respectively.
The pan-European STOXX 600 Index advanced 1.2%.
Asian stocks also rallied on Thursday, with China’s Shanghai Composite Index gaining 2.3%. The benchmark gauge has advanced in three of the past four sessions since mainland markets reopened after the weeklong National Day holiday.
The CSI 300, which tracks stocks in Shanghai and Shenzhen, rose 2.4%.
In Japan, the Nikkei 225 rebounded more than 200 points or 1.2%.
A batch of disappointing global data this week likely means the US Federal Reserve will delay hiking rates at this month’s policy meeting in Washington. On Wednesday government data showed a decline in core retail sales in September, putting the US economy on pace to grow less than 2% annually in the third quarter.
On Thursday the Labor Department said consumer inflation was flat in September compared with a year ago. So-called core consumer prices advanced 1.9% annually.
Plunging consumer inflation is mostly an extension of persistently weak energy prices. On Wednesday the Labor Department reported a 1.1% annual decline in producer prices in September, once again stemming from the oil price collapse.
The West Texas Intermediate (WTI) benchmark for US crude fell 46 cents or 1% to $46.18 on the New York Mercantile Exchange. With Thursday’s drop, the WTI contract is down around $3.50 from last week’s high.
Brent crude, the international benchmark, fell 24 cents or 0.5% to $48.91 a barrel on ICE Futures Europe.
Elsewhere around the globe, Japanese industrial production fell again in August. Industrial output was down 1.2% after falling 0.5% in July, the Japanese Ministry of Economy, Trade and Industry said.
In currencies, the US dollar rebounded on Thursday after plunging to a seven-week low the previous day. The dollar index, a weighted average of the greenback against six global peers, advanced 0.2% to 94.10.
The dollar rebounded sharply against the euro, which tumbled 0.7% to 1.1391 US.
