Growth worries weigh on stocks, but oil rallies

Thu Sep 10, 2015 4:15pm EDT
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By Chuck Mikolajczak

NEW YORK (Reuters) - Global equity markets outside the United States fell on Thursday as concerns about the economies of China and Japan added uncertainty to the world growth picture, but Wall Street rose, due in part to a rebound in oil prices.

The FTSEurofirst 300 index of top European shares snapped a three-day rally to close down 1.4 percent .FTEU3, following a disappointing session in Asia.

Wall Street went against the grain and advanced in a choppy session as Apple shares (AAPL.O: Quote) rebounded and the rise in oil prices boosted the energy sector.

The dollar .DXY was down 0.54 percent at 95.486 against a basket of major currencies as investors mulled whether recent volatility, amid a slowdown in China and other world markets, would prevent the Federal Reserve from raising U.S. interest rates next week.

"The fact of the matter is nothing has changed," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

"We've gotten no news that can either confirm or deny the Fed's prospects for raising interest rates next week, and we've gotten no news out of China that says they've arrested their deceleration or that the deceleration continues."

The Dow Jones industrial average .DJI rose 76.83 points, or 0.47 percent, to 16,330.4, the S&P 500 .SPX gained 10.22 points, or 0.53 percent, to 1,952.26 and the Nasdaq Composite .IXIC added 39.72 points, or 0.84 percent, to 4,796.25.

The latest policy responses to signs of stuttering global growth came as the Reserve Bank of New Zealand cut its benchmark rate by 25 basis points and signaled more would follow if China's economy slows further. The Kiwi dollar NZD= was down 1.41 percent to $0.6295.   Continued...

Traders work on the floor of the New York Stock Exchange September 8, 2015. REUTERS/Brendan McDermid