Europe open: Shares flat as China volatility hits sentiment

9th Oct 2024 08:06

(Sharecast News) - European shares were hovering around the flatline at the open on Wednesday after China markets came back to earth with a bump amid worries over the lack of follow-through on Beijing's stimulus measures.

The pan-regional Stoxx 600 was up 0.07% to 517 points in early deals with Continental bourses mixed. Eyes will also be on the release of minutes from the US Federal Reserve's last meeting later in the day.

US stocks finished higher overnight, with the Nasdaq outperforming the other main benchmarks as all Magnificent Seven heavyweights advanced.

The Dow rose 0.3%, rebounding slightly after retreating sharply from a record high the previous session, while the S&P 500 gained 1% and the Nasdaq jumped 1.5%.

Nevertheless, global equity markets were volatile earlier in the day after China's National Development and Reform Commission underwhelmed failed to deliver more stimulus measures at their conference, causing stocks with heavy exposure to China to drop.

In China, the Shanghai Composite fell 6.52%, despite Beijing insisting it could still hit its growth targets.

"The main concern was that the raft of measures announced prior to last week's holiday - which had lit the fire under a moribund market - were not followed up with any specific actions from the authorities, or indeed further plans," said Interactive Investor head of markets Richard Hunter.

In corporate news, Rio Tinto said it had struck a deal to buy Arcadium Lithium for $6.7bn, placing it among the main producers of the key component of electric vehicle batteries.

The mining giant said it was offering $5.85 a share in cash - a 90% premium to the stock's closing price at the end of last week.

Reporting by Frank Prenesti for Sharecast.com