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European stocks recover ahead of Wall Street open

 A woman walks in front of the electronic stock board of a securities firm in Tokyo, Japan, Tuesday, Aug. 25, 2009. The benchmark Nikkei 225 stock ave...
 A man walks in front of the electronic stock board of a securities firm in Tokyo, Japan, Tuesday, Aug. 25, 2009. The benchmark Nikkei 225 stock avera...

Japan Markets

A woman walks in front of the electronic stock board of a securities firm in Tokyo, Japan, Tuesday, Aug. 25, 2009. The benchmark Nikkei 225 stock ave...

Japan Markets

A man walks in front of the electronic stock board of a securities firm in Tokyo, Japan, Tuesday, Aug. 25, 2009. The benchmark Nikkei 225 stock avera...

European stock markets bounced back from earlier losses, when investors were spooked by a sharp drop in China, as an expected stronger open on Wall Street bolstered confidence.
Germany's DAX was up 8.25 points, or 0.2 percent, at 5,528.00 while Britain's FTSE-100 rose 6.94 points, or 0.1 percent, to 4,903.17. France's CAC-40 rose 4.82 points, or 0.1 percent, to 3,656.99.
In the morning, all the European indexes had been lower. They were helped around midday by a rise in futures for the Dow industrial average _ up 58 points to 9,551.00 _ and the Standard & Poor's 500 _ up 4.90 points to 1,029.40.
Europe took its cue on the open from Asia, where Shanghai's index dropped 2.6 percent after Chinese Premier Wen Jiabao said his country's economic recovery lacked a solid foundation.
But hopes that a key U.S. consumer confidence indicator will show a rise in household optimism boosted markets ahead of Wall Street's open.
Economists polled by Thomson Reuters expect the Conference Board's Consumer Confidence index to rise to 47.5 in August from 46.6 in July.
Stocks were battered earlier this month after a previous survey suggested U.S. households' spending _ which accounts for a massive 70 percent of the U.S. economy and 20 percent of the global economy _ will not recover as quickly as expected.
"This (survey) surprised on the downside last month and the consensus is consequently looking for it to rebound a little this time around," said Daragh Maher, analyst at Calyon.
Statistics due Tuesday also include a few measures of U.S. house prices, including the Case Shiller index.
Another point of support for U.S. markets has been the expectation that President Barack Obama is expected to announce the reappointment of Ben Bernanke to a second four-year term as Federal Reserve chairman.
Still, Maher noted that movements in stock markets during the thin and volatile summer trading could be short-lived.
"The bigger picture remains one of a gradual improvement in the global economy," with investors cautious about assuming a more rapid recovery, he said.
"A changeable market mood looks set to continue well past the summer doldrums."
Earlier in Asia, the Shanghai Composite Index slid as much as 5 percent at one point before paring losses. It closed down 77.63, or 2.6 percent, at 2,915.80, while Hong Kong's Hang Seng was off 0.5 percent at 20,435.24.
Japan's Nikkei 225 stock average lost 83.69 points, or 0.8 percent, to 10,497.36. South Korea's Kospi lost 0.7 percent, Taiwan's market edged down 0.4 percent and India's Sensex was up 0.3 percent.
Crude oil prices recovered in European afternoon trade along with stock markets, with the benchmark crude for October delivery up 7 cents at $74.44. The contract gained 48 cents overnight.
The dollar weakened to 94.32 yen from 94.48 yen. The euro rose to $1.4344 from $1.4297.
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Associated Press Writer Jeremiah Marquez in Hong Kong contributed to this report.


Updated : 2020-12-02 16:14 GMT+08:00