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Thursday, December 2, 2021

European stocks rally at open

European stocks rally at openLONDON: European stock markets rallied at the start of trading on Thursday, rebounding slightly from heavy recent losses linked to China’s weakening of its currency.

London’s benchmark FTSE 100 index climbed 0.82 percent to 6,624.86 points compared with Wednesday’s close.

Frankfurt’s DAX 30 jumped 1.59 percent to 11,098.17 points and the CAC 40 in Paris advanced 1.64 percent to open at 5,006.01.

Europe’s main indices had slumped over the past two days, with Frankfurt and Paris both shedding more than three percent on Wednesday.

China weakened its currency for the third consecutive day Thursday, but financial markets that had been shaken by the surprise devaluation took heart as authorities pledged not to let the yuan plummet.

The central bank trimmed the reference rate for the yuan — also known as the renminbi (RMB) — by 1.11 percent to 6.4010 yuan against the dollar, the China Foreign Exchange Trade System said, from the previous day’s 6.3306.

Analysts have viewed the action as a way for China to both boost exports by making its goods cheaper abroad and push economic reforms.

It comes after recent economic data out of China has reinforced concerns that growth is slowing in the world’s second largest economy.

Copyright AFP (Agence France-Presse), 2015

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