The FTSE 100 bounced back from 10 days of continued losses yesterday, overcoming fears of a Chinese-led global slowdown that had caused it to fall 4.67% on Monday.
By Yesterday’s close, the FTSE index was up 182 points or 3% to 6,081. The rise was boosted by news that China had cut its main interest rate by 0.25 basis points to 4.6%.
Surprisingly the top gainers of the day was dominated by mining stocks which have been hit badly over the past few months with the steady decline of commodity prices.
On the currency markets, the pound was down 0.47% against USD to $1.570 and ended €1.376 against the Euro.
Elsewhere in South Africa a dismal 2nd quarter GDP figure released at -1.3% does not paint a pretty picture of their economy. The growth or lack thereof, suggests the SARB will be in no rush to hike interest rates. On the flip side the Rand was boosted by a rate cut from China as it brought relief to global markets, but the local unit is still not out of danger just yet.