A powerful rebound for Chinese stocks offered an encouraging backdrop for global equity markets yesterday, although the broader risk environment was more mixed.
The Shanghai Composite index leapt 4.5 per cent – its biggest one-day rise since March – amid hopes of government action to support the market following its slide since the start of the month.
“China is currently being watched as a bellwether with concerns that the recent collapse in Chinese equities may act as a leading indicator for global equities,” said Sreekala Kochugovindan, asset allocation strategist at Barclays Capital.
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