Even though it became clear that the Chinese authorities were up to some ‘jiggery pokery’, when suddenly out of nowhere the Shanghai Composite moved like a rocket from being down 2% to being up 2.9% in the same session. Maybe it was some currency manipulation or perhaps there was some ‘force-majeure’ to buy stocks without argument. Anyway post the Labor Day holiday the Chinese antics provided sufficient momentum for European bourses this morning, with FTSE acolytes being easily pleased as the FTSE added 120 points before pulling back to stand up just 80 points at 6155 at 3.15pm.
Oils bounced out of the traps with BP leading the way – up 3% initially, guided by UBS’s upgrade and conceivably influenced by the fact that Chairman Sandberg bought 1 million shares. This share price has given up some glister and is only 1% up, as I speak. The Mining sector is up 2%, with gossip prevailing that Glencore may buy South 32 the former BHP outfit. I have my doubts considering the level of debt that Glencore has. Amlin was up 33% thanks to Mitsubishi Sumitomo Insurance bid. It is not that long ago that the CEO categorically denied that Amlin was for sale! Whitbread was down 2%, the Berkeley Group was 1.5% easier with Redrow near enough flat. Ashmore pleased its acolytes and was up 7%. The DOW is up 260 points – +1.6%.