Mixed market outlook as China steadies

Mixed market outlook as China steadies

Stockmarkets in Asia ended trading higher with China’s Shanghai Composite index posting a reasonable 3.5 per cent gain after recent losses.

This helped boost other markets in the region, with the Hang Seng index in Hong Kong closing 1.13 per cent higher, while the Topix index in Japan gained 0.13 per cent. However, reports in the Financial Times that the China Securities Finance Corp has been lent approximately 1.3trn Renminbi (£133.6bn) to help slow the market falls has raised concerns the equity rebound may not last.

Meanwhile European markets were slightly lower early trading after the European Central Bank appeared to signal its support for a Greece bailout and the Bank of England governor Mark Carney hinted UK interest rates could start to move higher at the turn of the year.

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The French Cac 40 index slipped 0.14 per cent to 5,114.32 while the German Dax index also dropped 0.14 per cent. In the UK the FTSE 100 index fell 0.23 per cent as of 8.49am.