World Stocks Recover, London up 2.52%

Wednesday, April 1, 2009 at 3:24 pm

World Stocks Recover, London up 2.52% LONDON: Global stock markets recovered Tuesday as investors hunted for bargains a day after sharp losses caused by heightened concerns for the US economy and in particular its ailing auto sector.

“US markets are set to follow Asia and Europe to the upside as bargain hunters come in after yesterday’s heavy losses,” said CMC Markets dealer Ian Griffiths.

In late morning European trade, London rallied 2.52 percent while Paris won back 1.43 percent and Frankfurt climbed 1.04 percent nearing the half-way mark.

However there was still a long way to go before they recouped all their losses seen Monday, when Frankfurt had ended more than five percent lower.

“Today’s session is about short-term bargain hunting on the back of stronger than expected company earnings,” City Index market strategist Joshua Raymond said regarding the situation in London.

“The market remains incredibly sensitive to economic data and company results, and consequently these violent swings are likely to remain for some time.”

In London, the share price of Marks and Spencer shot up 11 percent as the British clothing-to-food retailer reported better than expected sales data.

Barclays bank jumped four percent after announcing late Monday that it would not take part in a government insurance scheme for risky assets that could have led to the lender’s partial nationalisation.

The group added in a bullish statement that it has enjoyed a “strong” trading performance so far this year despite the ongoing credit crunch and a deep recession in Britain.

In Asia, Hong Kong share prices closed up 0.89 percent on Tuesday as investors looked for bargains following a steep decline the previous session, dealers said. Seoul won 0.74 percent, Shanghai gained 0.64 percent and Singapore jumped 1.60 percent.

Tokyo closed down 1.54 percent but losses were far less severe compared to Monday when the Japanese market had plunged 4.53 percent.