Global stocks bounced back and government debt rallied on Monday after last week’s turbulent trading, triggered by worries over the possibility of a breakneck economic expansion and the possibility of central banks tightening monetary policies.
Wall Street’s blue-chip S&P 500 index rose 2.4 per cent, its biggest one-day gain in almost nine months and enough to erase almost the entirety of last week’s declines. The technology-focused Nasdaq Composite climbed 3 per cent. Small-cap stocks advanced even further, with the Russell 2000 up 3.4 per cent — on track for its best daily performance since early January.
In Europe, the region-wide Stoxx 600 closed up 1.8 per cent, while both London’s FTSE 100 and Frankfurt’s Xetra Dax indices ended the session 1.6 per cent higher.