Chinese Stock Rebound Continues, European Shares Under Pressure
Chinese stocks continued to rebound Wednesday after volatile trading earlier in the week.
The CSI 300 index rose 1%, while the small cap CSI 1000 index jumped 4.5%–a second consecutive day of gains after it sank 6% Monday. However, Hong Kong’s Hang Seng index fell 0.3%.
President Xi Jinping met with regulators to discuss the recent slide in the stock market, according to multiple reports.
China removed the head of its securities regulator, according to a report by state media Xinhua News Agency Wednesday. The move might suggest more stimulus ahead for the stock market.
European stocks were under pressure Wednesday as a lack of catalysts left investors pondering the outlook for interest-rate cuts.
The pan-European Stoxx 600 index fell 0.2%, Germany’s DAX was down 0.3%, and the U.K.’s FTSE 100 declined 0.4%. The British pound rose against the dollar for a second day. The FTSE 100 tends to move inversely to the pound as many of the index’s constituents generate the majority of revenue overseas.
“There was a dearth of economic events or data releases to provide direction. Instead, it feels as if investors will once again take their lead from U.S. stock indices,” Trade Nation analyst David Morrison said.