European stocks rebounded on Wednesday, breaking a seven-session losing run, while US stocks opened lower but climbed quickly as investors remain cautious after a recent spate of volatility.
The FTSE 100 index added 1.4% to 7,245.06 and the Stoxx Europe 600 index rose 1.13% to 376.99, rallying from its lowest close on Tuesday since late August last year.
Germany’s DAX 30 index was up by 1.0% to reach 12,516.21, while France’s CAC 40 gained 0.8% to 5,203.83.
Many analysts believe that the downturn was an on-off. Caroline Simmons, deputy head of the UK investment office at UBS Wealth Management, said: “We don’t see any economic triggers for it.”
Cryptocurrencies were recovering after an unstable seven days. In 24 hours, the total market capitalisation of all cryptocurrencies increased 25% to $352bn, as per data provider CoinMarketCap. The total value had dropped to $276bn yesterday – the lowest level since November 26.
Bitcoin rose Wednesday, clambering back above $8,000 just one day after it briefly dipped under $6,000. The price of a single bitcoin was up by 7% to $8,275, according to CoinDesk data.
According to Reuters, oil prices were broadly steady on Wednesday, as the boost from a report showing a drop in US crude inventories last week was offset by evidence of soaring US output.
Gold prices headed lower for a fourth-straight session and were down 0.14% at $1,327.60 an ounce.