China stock market live: FTSE 100 rebounds day after global markets have

This was despite Chinese stocks tumbling again this morning – plunging more than 7%, and hitting their lowest level in eight months.

America’s Dow Jones was also in positive territory, adding around 2% after it suffered big losses in the previous session.

RSA Insurance Group was the only share among the 101-component index that closed higher.

But almost all top-flight shares were ahead today, with the index pulled higher by a recovery in mining stocks such as BHP Billiton and Antofagasta – which have been pounded by the falls in commodity prices caused by China’s woes.

The FTSE 100 index ended below the 6,000 point mark, down 1.7% at 5,979.20 points, having touched an intraday high of 6,095.05. The benchmark reported a major jump just minutes after the People’s Bank of China announced it would cut the requirement reserve ratio for investors by 0.5 percentage points, in the seventh cut since November 2014.

“China needs to do more” Jameel Ahmed at FXTM Analysis said, adding “the interest rate cuts from the PBoC are nowhere near enough to support continuously declining economic momentum in China and the pressure”.

“Whilst the numbers were fairly ugly reading, I think the thing that the market was most concerned about was that the dividend should be maintained, which it was”, said Richard Hunter, head of equities at Hargreaves Lansdown. Some stabilisation in activity is probably the best case scenario.

That came after comments from Federal Reserve official William Dudley that the case for a US interest rate hike next month is “less compelling” given China’s troubles, falling oil prices and emerging market weakness. “Raising rates could have a host of unsafe consequences… And so we are affected by what happens; whether it’s problems in the eurozone [or] problems in Asian financial markets“, he said.

But the London market bounced back in early trading in the latest session, with investors hunting bargain-priced stocks and the panic that had seen trading screens turn red the day before ebbing away.

Elsewhere, challenger bank Aldermore leapt 8% or 22.5p higher to 300.5p in the FTSE 250 Index after seeing interim profits double to £39.5 million, up from £18.6 million a year earlier.

Update: The FTSE 100’s rally has strengthened after fresh data showed the US grew at an annualised rate of 3.7% in the second quarter of the year, a sharp increase on the 2.3% first estimate.

Michael Hewson, chief market analyst at CMC Markets, said not only had the immediate threat of a US rate rise receded, but some even believe the Fed should launch further economic stimulus efforts, in the form of more quantitative easing (QE).