- Reuters / Lucas Jackson
- Global markets look to bounce back as European indexes gain ground, and US futures point to a positive open.
- Dow Jones and S&P 500 futures are suggesting a 0.7% gain for both respective indexes, while the Nasdaq is set to bounce more than 1.2%.
- Italy’s FTSE MIB leads the way in Europe, higher by more than 1%.
- The rebound comes after a Wall Street bloodbath on Wednesday, which saw the Nasdaq lose more than 4%, and the Dow Jones drop more than 600 points
- Asia could not escape influence from Wednesday, however, with Japan’s benchmark Nikkei dropping almost 4% during Thursday’s session.
Global stock markets appear to be bouncing back on Thursday with European indexes in the green during mid-morning trading, and US futures pointing to a positive open following Wednesday’s Wall Street bloodbath.
Wednesday saw the Nasdaq lose more than 4%, and the Dow Jones drop more than 600 points, or 2.4%. The Nasdaq’s fall on the day pushed the index into correction territory.
Thursday, however, seems to be shaping up to be a better day for US equities, with futures markets pointing to a strong bounce in all three major indexes. Dow and S&P 500 futures are suggesting a 0.7% gain for both respective indexes, while the Nasdaq is set to bounce more than 1.2%.
By just after 10.00 a.m. BST (5.00 a.m. GMT), the majority of European indexes are also higher, with only the UK’s FTSE 100 lower, and even then by just 0.3%. Italy’s FTSE MIB leads the gains, higher by more than 1%, while France’s CAC 40 is 0.8% higher, and Germany’s DAX – which started the day almost 1% down – is up by 0.2%.
The rebound in Europe and North America comes after a tough session in Asia which saw Japan’s benchmark Nikkei share index lose almost 4% of its value, and amid an October in which stock markets have suffered from a cocktail of fears.
A combination of worries have weighed on global markets in the past few weeks, with some anxious the Federal Reserve’s plans for raising interest rates further are set to restrict growth.
Adding to concerns, China reported last week that economic growth fell to the lowest level in a decade in the third quarter, exacerbating concerns about the country’s economic slowdown.
“What makes the latest volatility more troubling is that it’s been difficult to identify one specific cause,” Kerry Craig, a global market strategist at JPMorgan Asset Management said on Thursday morning.
“There are many symptoms but no one can diagnose the illness,” he said. “Geopolitics, rising bond US bond yields, a more hawkish looking US Federal Reserve, slowing Chinese growth, a strong US dollar and the already well known problems in some emerging economies have all contributed to the market unease.”
European stocks could see further price movements later in day as they must contend with the European Central Bank’s upcoming October meeting this afternoon. The meeting is not expected to contain any great surprises, with policy and guidance likely to be unchanged from the central bank’s last meeting in September.