After wild swings over the past few days, European stocks ended up posting their first weekly gain since China devalued its currency.
The Stoxx Europe 600 Index rose 0.3 percent at the close of trading, adding most of those gains in the final settlement period. An advance of 0.3 percent in the first few minutes of trading gave way to losses of as much as 1 percent as the session progressed, before the gauge moved higher.
The stocks index had daily moves of 1.7 percent or more in the past seven days as China’s currency devaluation rattled markets. Despite the volatility, the Stoxx 600 ended the week 0.6 percent higher.
Investors are waiting for cues on the timing of a U.S. rate increase from central bankers gathered at Jackson Hole, Wyoming this weekend, said Zogg. Traders’ odds of a rate increase in September has dropped to 38 percent, from about 48 percent before China’s move.
The Stoxx 600 plunged the most since 2008 on Monday. It then alternated between gains and losses until today’s first back-to-back advance in more than a week. Europe’s benchmark gauge is still heading for the worst month since 2011.
Source : Bloomberg