LONDON: Stock markets around the world rallied on Thursday, shaking off a slump related to China growth fears, as strong US economic data boosted investor sentiment and crude oil rebounded sharply.
All three major US indices closed up more than 2 per cent, putting them higher for the week, following share rebounds in China and Europe.
The Dow Jones industrial average rose 369.26 points, or 2.27 per cent, to 16,654.77, the S&P 500 gained 47.15 points, or 2.43 per cent, to 1,987.66 and the Nasdaq Composite added 115.17 points, or 2.45 per cent, to 4,812.71.
Dovish words from a Fed official and improving economic data bolstered sentiment that had turned bearish after a global rout triggered by China’s currency devaluation hit American shores.
“We got our pullback, and now we’re going to focus on US things like GDP and the Fed,” said John Canally, chief economic strategist at LPL Financial in Boston. “When you’re in a correction, it’s not fun, but when you’re out, you can refocus on what matters.”
Strong US growth figures were a boost for the markets as GDP growth was revised to 3.7 per cent from the 2.3 per cent rate reported last month and last week’s jobless claims fell more than expected.
