A lot can change in a week on the markets. Having seen some very bad days for equities in recent sessions, Europe and parts of Asia were more upbeat on Wednesday.
The FTSE 100 was up 0.9% to 7,042 and China’s SSE index jumped back to life after markets were closed for a few days’ holiday. The SSE advanced 0.4%. Pre-market indicative prices also suggest a decent day for US stocks.
Russ Mould, investment director at AJ Bell: “So, what’s changed to make investors more confident? One key event is China’s troubled property developer Evergrande striking a deal over a bond repayment, thereby bringing a sense of relief to markets we might not see the business collapse – something that could cause ripples in multiple markets. Evergrande still has plenty of problems to fix including more bond payments later this week, but today’s deal would suggest catastrophe is not immediately around the corner.
“We also have the Federal Reserve issuing a policy statement later today and speculation is growing that we won’t get the dreaded tapering announcement at this event. That would be a massive relief to investors and could give further support to markets.”