Markets opened on a more positive note today following the dramatic drops of world indices yesterday, amid a fallout from the plummeting China economy.
The FTSE 100 opened at 5,994 points, up 1.6 per cent on the close yesterday. However, it has further to go to recover the £74bn wiped off the market on Monday.
Other European markets also recovered, with the German Xetra Dax rising 1.8 per cent, the FTSE Eurofirst 300 up 1.8 per cent, the Euro Stoxx 50 index rose 1.9 per cent and the French CAC 40 rising 1.9 per cent.
However, Chinese markets continued their downward trajectory, with the Shanghai Composite opening around 7 per cent down on yesterday’s close. Since its peak in June, the Shanghai market has lost nearly 40 per cent in value. Despite the falls, over the past 12 months the Shanghai Composite is still up 35 per cent.
Elsewhere in the world markets also started to recover. The Australian ASX 200 is up 2.7 per cent, while the Hong Kong Han Seng is up 1.5 per cent.
Japan saw a slight rebound of 0.8 per cent in the Topix, after opening 4.7 per cent down in early trading. It was a similar story in Korea, where the Kospi opened on a 1.3 per cent loss and then bounced back by 0.7 per cent.