U.S. stocks climbed after China stepped up efforts to shore up its currency, bolstering optimism that officials in the Asian nation can tame the turmoil that has rattled global financial markets this year.
The Standard & Poor’s 500 Index rose 0.7 percent to 1,936.52 at 9:32 a.m. in New York, after yesterday erasing a drop of more than 1 percent to snap a three-day losing streak.
Worries that turbulence in China’s stocks and currency will spread to the global economy has spurred declines in markets in 2016 — the S&P 500 posted its worst-ever start to a year, sliding 6 percent last week. China’s measures today to defend the yuan helped ease investor concerns about a hard landing in the nation’s economy, sparking a record surge in Hong Kong’s money-market rates and deterring bearish speculators.
The main U.S. equity benchmark’s tumble to start 2016 has left it more than 9 percent below its all-time high set in May after coming within 1 percent of the record as recently as November. It was 3 percent above the bottom of an August swoon through Monday, which was also sparked by anxiety over the impact of China’s weakness on worldwide growth.
Source : Bloomberg