World Economy

Markets Rebound Over China Easing

Markets Rebound Over China EasingMarkets Rebound Over China Easing

Britain’s top equity index the FTSE 100 ended flat as easing concerns over China’s economy helped to offset the impact of falling oil prices.

A stronger US dollar and a persistent global overhang of physical oil pushed crude prices lower on Thursday with Brent falling below $50 a barrel down 1.2%.

Energy companies took the most off the index, with Royal Dutch Shell and BG Group closing down 3 and 1.8% respectively, Euronews reported.

But stock markets in Asia and Europe bounced back, Frankfurt was up close to 1%, Paris gained 1.25%.

“They’re taking the Chinese central bank at its word, but I’m still taking those comments with a pinch of salt,” said one analyst.

Political turmoil in Turkey was reflected in a 1.39% drop in Istanbul one of the few indexes to close at a loss.

Asian shares turned mostly lower late Friday, as investors weighed the People's Bank of China's decision to set the midpoint rate for the yuan at 6.39, slightly lower than the previous day's close.

The move broke the central bank's devaluation pattern since Tuesday, and in line with the PBOC's announcement on Thursday that there was no basis for continued currency depreciation.

China's Shanghai Composite index narrowed gains to 0.3% end-Friday. Earlier in the session, the bourse rallied over 1% as authorities stopped guiding the currency lower.

Meanwhile, Hong Kong's Hang Seng index ticked down 0.1% in range-bound trade.

Japan's Nikkei 225 dipped on the final trading day of the week, hurt by declines in commodity-related shares.