2:05 PM New York City, New York – Market averages in the United States rebounded after a 3-day sell-off that saw the S&P 500 index correct more than 10%. The sentiment was bolstered after positive data on the housing market and China moved to lower rates and loosen bank reserves. European markets jumped more than 3%.
Stocks roared back in New York after China moved to lower rates and loosen reserve requirements for banks. European markets also erased sharp losses of Monday.
Stocks in New York rebounded after a 3-day rout that pushed S&P 500 index in a correction of nearly 10%, first in four years and on positive data on the housing market.
Sentiment in New York was also bolstered after China lowered rates after indexes in Shanghai dropped more than 7% following more than 8% in the previous session.
The Chinese move was intended to rekindle confidence in financial markets but the move have come too little and too late.
The People’s Bank of China lowered its one-year bench mark rate by 25 basis points to 4.6% and its one-year deposit rate by the same amount to 1.75%.
The move by the central bank was designed to avert another market slide but indexes in Shanghai opened down 6% and closed down 7.6% to an eight-month low following 8.4% decline in the previous session.
Seasonally adjusted new home sales in July jumped 5.4% to 507,000 from the revised June rate of 481,000 and surged 25.8% from a year ago month to 403,000, the Department of Commerce said.
On Wall Street, Tollbooth Strategy Index soared 312.08 or 3.2% to 10,185.54.
S&P 500 index gained 23.86 or 1.2% to 1,916.66 and the Nasdaq Composite Index jumped 92.37 or 2% to 4,619.08.
Crude oil in New York increased $1.24 to $39.48 a barrel and gold plunged $16.50 to $1,137.10 an ounce.
Best Buy Co Inc
) surged 14.4% or $4.21 to $33.51 after the consumer electronics retailer reported revenues in the second-quarter ending on August 1 gained 0.8% from a year ago to $8.53 billion.
Comparable store sales in the quarter jumped 2.7% and online comparable sales soared 17%.
Net income in the quarter advanced 12.3% to $164 million or 46 cents per diluted share compared to $146 million or 42 cents from the same quarter last year.
The retailer said domestic revenue increased 3.9% to $7.9 billion while revenues in international segment plunged 25.6% to $650 million from a year ago period.
European markets rebounded and halted global sell-off that knocked off many indexes into correction of more than 10% from the recent peak two months ago.
In London trading, FTSE 100 index jumped 164.30 or 2.8% to 6,063.73 and in Frankfurt the DAX index soared 436.73 or 4.5% to 10,085.76.
In Paris, CAC 40 index advanced 172.46 or 3.9% to 4,552.68.
BHP Billiton Plc
jumped 4.6% to 1,011.50 pence after the Australia-based mining company reported total revenues in the year ending in June declined 21.4% to US$44.64 billion from US$56.76 billion a year ago period.
Net income in the quarter tumbled 86.2% to US$1.9 billion compared to US$13.8 billion and diluted earnings per share dropped to 65.3 cents from 255.7 cents in the same period a year ago.
Petroleum production in the year jumped 4% to 255.7 million barrels of oil equivalent and total iron ore production soared 13% to 232.5 million tons and metallurgical coal which used in steel making surged 13% to 42.6 million tons from a year ago period.
The miner said net operating cash flow in the year of about US$17.8 billion but free cash flow dropped 26% to US$6.3 billion.
BHP said net debt in the year fell 5% to US$24.4 billion on cost cutting of US$4 billion, two years ahead of schedule. Capital and exploration expenditure declined 24% to US$11 billion.
BHP forecasted petroleum production for fiscal 2016 to decline 7% to 237 million barrels of oil equivalent and copper output to drop 12% to 1.5 million tons while metallurgical coal production to fall 6% to 40 million tons and energy coal production to slid 2% to 40 million tons.
surged 82.1% to €4.37 after the Italy-based air-conditioning and heating systems parent De’Longhi Industrial S.A. agreed to sell 74.97% stake to Japan-based Mitsubishi Electric Corporation for about €664 million or $768 million in cash.
The transaction is expected to close by the end of November.
Nikkei deepened losses in the second week following large losses in world markets. However, markets in India and Korea rebounded.
Sony said it will offer commercial drone services from the next fiscal year. Toyota said it will suspend Prius hybrid production in Thailand.
Nikkei in Tokyo dropped for the second week in a row following market sell-off in New York and Europe in overnight trading.
The Nikkei 225 Stock Average plunged 733.98 or 3.9% to 17,806.70 and the broader Topix index slumped 48.22 or 3.3% to 1,432.65.
The yen eased to 119.16 against a dollar.