Global stock markets on Tuesday clawed back losses from the heaviest sell-off in months as investors bet that policymakers would step in to prevent a calamitous fallout if the Chinese property developer Evergrande defaulted.
In the US, the technology-heavy Nasdaq Composite added 0.2 per cent for the day, having dropped 2.2 per cent a day earlier. It followed Europe’s Stoxx 600 benchmark, which closed up 1 per cent following the continent-wide benchmark’s steepest dive in nine weeks. Frankfurt’s Xetra Dax jumped 1.4 per cent while London’s FTSE 100 ended the session 1.1 per cent higher.
However, late selling pressure erased bigger gains on the Nasdaq and pushed the benchmark S&P 500 share index 0.1 per cent lower at the close, having gained as much as 0.8 per cent in morning trading in New York. The index had spent most of the day in positive territory, in line with global bourses, after tumbling 1.7 per cent on Monday in its sharpest fall since May.