China’s stock market helped led the recovery in Asia today, with South Korea and Hong Kong close behind.
The benchmark Chinese index, the CSI 300, has gained almost 1.2% in late trading.
South Korea’s Kospi 200 is up 0.9%, the Hong Kong Hang Seng has gained 1.3%. while Australia is up a more modest 0.6%.
But this doesn’t mean the recent phase of volatility is over, as Konstantinos Anthis of ADS Securities explains:
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
After last week’s turmoil, a degree of calm has returned to the financial world.
Most Asian stock markets are rallying today, after a strong performance on Wall Street last night which saw the Dow jumping 410 points.
With fears of a crash fading, investors can indulge in one of their favourite pastimes – trying to bag a bargain.
Asia’s stocks are generally higher, with signs that markets are becoming more stable https://t.co/PcCK453kP3 pic.twitter.com/TJwC6ALRaZ
February 13, 2018
European markets are expected to open calmly; a change for traders who have watched the major indices swing violently in recent days.
Jasper Lawler of London Capital Group explains:
Overnight the Dow had its best session in two years jumping over 400 points. It’s fair to say that whilst volatility has eased up from the 1000 plus swings last week, these are still much more volatile sessions than what we are used to.
The impressive rally on Wall Street spilled across into Asian markets, which posted healthy gains across the session. Unsurprisingly European bourses look set to follow suit and push on higher at the open.
The Dow made 11 all-time closing highs during the first 18 days of the year, and investors responded by pouring a record $58 billion into stocks. The V-top caught investors off guard and sent them diving for the exits https://t.co/CUxtVPcPAc pic.twitter.com/fuXDECI6Zq
Here’s the opening calls for Europe’s major stock markets:
UK FTSE to open 7 points higher at 7184
German DAX to open 26 points higher at 12,308
French CAC to open 12 points higher at 5152
But the mood in the City could change when the latest UK inflation figures are released this morning.
The Consumer Prices Index is expected to fall to 2.9% in January, down from December’s 3%. But, given the strength of the oil price, some City economists doubt whether inflation has started falling yet.
Royal Bank of Canada say:
A high inflation reading puts more pressure on the Bank of England to raise interest rates soon – as it threatened last week.
Here’s the agenda
9.30am GMT: UK Consumer Price Index figures for January
9.30am GMT: UK house price data for December