Global stocks rise as China fears ease; oil rebounds
By Caroline Valetkevitch
NEW YORK (Reuters) - Global stock indexes rose on Wednesday, helped by reports of brokerage measures in China to invigorate the country's battered markets, while oil bounced from earlier losses to end nearly 2 percent higher.
The S&P 500 jumped 1.8 percent, rebounding from Tuesday's steep losses. An upward revision in U.S. productivity data and a Federal Reserve report saying U.S. labor markets were tight enough to fuel small wage gains in some professions in recent weeks boosted sentiment.
Rallying equities pulled crude oil up from lows in another volatile session for the energy market.
Overseas, nine Chinese brokerages pledged to buy more than 30 billion yuan of shares, according to the China Securities Journal. That eased investor fears that Beijing may be intensifying a trading crackdown.
The news steadied global markets that have been rattled in recent weeks by concerns about slowing growth in China, the world's second biggest economy.
"What we're seeing today is not a recovery. It's market volatility, it's nervousness, it's an inability to call the direction of the market," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
"Through now and October we're going to see a lot more of this, a lot of volatility."
The CBOE Volatility index, Wall Street's "fear gauge," dipped 11 percent but stayed in territory not seen since 2011 after Standard & Poor's cut its credit rating on the United States for the first time. Continued...