Developed market equity indices have made further gains after better than expected second quarter US GDP growth figures.
The US Commerce Department’s second estimate of Q2 growth showed the US grew at an annualised rate of 3.7 per cent in the three months to June 30, up from an initial estimate of 2.3 per cent.
The figure, driven by improvements in business spending, is well above the 3.2 per cent forecast by economists.
UK and European indices extended gains as a result, with the FTSE 100 rising 3 per cent to 6,153. In the US, the S&P 500 then opened 1.3 per cent higher at 1,965.
Earlier today (August 27), the Shanghai Composite index rallied to close up 5.4 per cent, or 158.13 points, at 3,085.42 following a week of losses.
The Shenzhen Composite, a tech-heavy index, also made gains as trading closed, climbing 3.3 per cent to 1,752.21.
These moves, combined with strong gains for US indices yesterday, helped European stocks jump higher in early trading.
The FTSE 100 index opened up 2.24 per cent to 6,113.15, with Germany’s Dax up 2.89 percent and France’s CAC 40 up 2.35 per cent.
