Market commentary: International markets remain volatile

European stocks rebounded on Tuesday as investors swooped in to catch some good deals after equity markets suffered their worst selloff in nearly seven years. The rebound even pushed Germany’s benchmark index into positive territory for the week.

Other indices also enjoyed a jump with the Stoxx Europe 600 gaining 4.2% on the back of the announcement by China’s central bank, saying it would cut its benchmark-interest rates, and that the reserve requirement ratio for banks is being lowered by 0.5 percentage points. The moves will go into effect Wednesday and were sparked by worries that China’s economy is slowing down more than anticipated.

Among Tuesday’s big advancers in the Stoxx Europe 600 was Antofagasta PLC, with the copper producer up 8.7% after posting a rise in first-half net profit to of $706 million

Germany’s DAX jumped 5% matching losses made during ‘Black Monday’. The index is now up fractionally so far this week.  France’s CAC 40 also recovered 4.1% to end at erasing most of Monday’s 5.4% slide.

In London the U.K.’s FTSE 100 rose 3.1%  after the British benchmark on Monday fell 4.7%. The close higher by the FTSE 100 was the index’s first in 11 sessions. The 10-session losing streak notched Monday was the longest since 2003.

Gains for Antofagasta PLC and RSA Insurance Group PLC helped the British blue-chip benchmark to recover most of the steep declines suffered during Monday’s selloff that erased £86 billion in market value.

Randgold Resources Ltd. was among a handful of FTSE 100 members whose shares lost ground Tuesday, down by 3.5% as prices for gold dipped. Similarly BHP Billiton shares closed lower 1.4%

RSA Insurance shares were also up 3.9% after the insurer said it has received a revised buyout offer from Zurich Insurance Group AG valuing the company at around £5.63 billion.

In the U.S, stocks closed lower yesterday with the S&P 500 recovering falling just under 1.5 percent adding to losses from the global rout that sent the benchmark into a correction after the steepest two-day drop since the 2007/2008 financial crisis.

Technology shares were the main gainers; Apple Inc. jumped the most since January and shares of Best Buy Co. spiked more than 15 percent after the electronics retailer reported fiscal second-quarter profit and sales that rose well above expectations.

Netflix Inc. added 5 percent to reverse Monday’s decline and Facebook Inc. surged 5.8 percent, the most in a year, after sliding 14 percent in the prior three sessions.

In the banking sector JPMorgan Chase & Co. and Bank of America Corp. advanced at least 3.8 percent to lead banks back from their worst two-day slide in four years.

Markets opened weaker this morning; Euro Stoxx, CAC 40 and DAX are all down more than 1 percent.

This article was issued by Andrew Cassar Torreggiani, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt .The information, views and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.