LONDON — Attempts by Chinese officials to reassure investors have helped European markets post some modest gains Monday, on a day when trading activity is diminished by a U.S. holiday.
KEEPING SCORE: In Europe, France’s CAC-40 climbed 0.5 percent to 4,545 while Germany’s DAX rose 0.6 percent to 10,102. The FTSE 100 index of leading British shares was 0.5 percent higher at 6,073. Wall Street is closed Monday for the Labor Day holiday.
CHINA RHETORIC: China’s central bank governor, finance minister and securities agency all tried to reassure investors over the weekend that market turmoil was ending. At a meeting of the Group of 20 major economies. People’s Bank of China Gov. Zhou Xiaochuan said Beijing’s intervention averted a bigger crisis, according to a central bank statement.
ANALYST TAKE: “Whether or not we have realistically seen the lows in the various Chinese markets is yet to be seen, but the belief and assurance provided by the Chinese authorities over the weekend suggests we may see better days ahead,” said Chris Weston, chief market strategist at IG.
ASIA’S DAY: Despite those attempts to reassure, the Shanghai Composite Index ended 2.5 percent lower to 3,080.42 after fluctuating between gains and losses. Hong Kong’s Hang Seng lost 1.2 percent to 20,583.52. Tokyo’s Nikkei 225 rose 0.4 percent to 17,860.47 while India’s Sensex declined 0.3 percent to 23,135.45. Sydney’s S&P/ASX 200 shed 0.2 percent to 5,030.40 and Seoul’s Kospi was off 0.2 percent at 1,883.22. Taiwan, Singapore and Jakarta also declined.
US JITTERS: The U.S. is also in focus in the run-up to next week’s policy meeting of the Federal Reserve. A mixed August jobs report has left investors wondering what the Fed will do. Friday’s figures showed the U.S. unemployment rate fell to a seven-year low but employers adding fewer jobs than forecast. The Fed has kept its benchmark interest rate close to zero since late 2008, which has pushed up stock prices.
ENERGY: Benchmark U.S. crude fell 58 cents to $45.47 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, lost 64 cents to $48.97 in London.
CURRENCIES: Trading in currency markets was similarly subdued with the euro flat at $1.1150 and the dollar up 0.3 percent at 119.43 yen.
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