Europe rebounds as Asia equities falter

The USA futures indicate a firm open on Wall Street.

It contracted at a 0.8 percent annualized rate. The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.5 per cent while the Shanghai Composite Index gained 0.7 per cent.

Global shares gained convincingly on Tuesday, clawing back all the ground lost the previous day as investors bet that Friday’s attacks on Paris would have little lasting impact on the economy.

“Past experience with terrorist strikes in Europe, including the Madrid bombings in March 2004 and the attacks on the United Kingdom public transport system in July 2005 suggest that the financial market impact of even the most severe attacks to be short lived”, said Olivier Adler at Credit Suisse. “That might be the case if you saw a series of these things, but hopefully that’s not what’s going to happen and the economy is not going to be affected”.

There were also suggestions that the European Central Bank, which had already hinted at further stimulus measures in December to boost the flagging eurozone economy, was now certain to act to try and prevent a new consumer downturn in the wake of the attacks.

“At this juncture, it is easy to see that the Fed’s intentions to “normalize” monetary policy could be derailed by a combination of adverse domestic economic and external events”, said Neil MacKinnon, global macro strategist at VTB Capital.

The market was oversold after the benchmark S&P 500 had declined over the past six of eight sessions, Saut said. Oil & gas producer Santos climbed 4 percent after crude prices rebounded in Asian deals. However, all other London share prices pushed higher. Brent was up 1 percent at $44.92 a barrel after shedding 1 percent on Friday, while US crude was up about 0.54 percent at $40.96 a barrel after giving up 2 percent.

Among outstanding losers, Sonova fell 8.9 per cent as the hearing aid maker cut its sales and profit forecasts after weak cochlear implant sales, sluggish business with USA veterans and a squeeze on overseas earnings from the strong Swiss franc.ast week’s 1.7 per cent gain as latest economic data undershot expectations. S&P 500 futures shed about 1 percent in light volume in late trading.

UP WITH DEFENSE: Investors bid up shares in several defense contractors. Cabot Oil & Gas gained 69 cents, or 3.3 percent, to $21.43, while Murphy Oil rose 15 cents, or 0.5 percent, to $28.92. The stock dropped $1.84 to $20.83. Utilities and energy stocks edged lower. Marriott ultimately added 98 cents, or 1.3 percent, to $73.72, while Starwood slid $2.72, or 3.6 percent, to $72.27.

France’s 10-year government debt fell 0.01pc but it was gold which made its biggest gains in almost a week, spiking by 1.2pc to $1,097 per ounce amid the turmoil.

Japan Airlines sank nearly three percent and rival ANA was down 3.5 percent, while in Sydney Virgin Australia plunged 6.5 percent.

The FTSEurofirst 300 index was up more than 2 percent at 1,490.53 points by 1240 GMT.

On Friday, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS skidded 1.4 percent, losing more than 3 percent for the week. Hong Kong’s Hang Seng added 0.1 percent to 22,285.93 and Malaysia, Jakarta and New Zealand also advanced.

“Risk aversion is on the rise and we are seeing broad-based US-dollar strength across the board, and this may continue until the year-end as recent economic data has also disappointed”, said Mr Mitul Kotecha, head of Asian FX and rates strategy at Barclays in Singapore.