US and European stocks bounce back from previous session drops

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Wall Street’s main equity gauge rose and European stocks bounced back from one of their biggest drops of the year in the previous session as investors shrugged off caution about the global economic outlook to focus on buying opportunities.

The S&P 500 index rose 0.8 per cent, having dropped by 0.9 per cent in the previous session amid concerns about a potential slowdown in China and the intensifying spread of the Delta variant of Covid-19. The technology-heavy Nasdaq Composite was up 0.5 per cent after a 0.7 per cent drop on Thursday.

The Europe Stoxx 600, which fell more than 1.7 per cent on Thursday, gained 1.2 per cent on Friday.

“Equity markets are in a state of indecisiveness but with an upward drift,” said Sunil Krishnan, head of multi-asset funds at Aviva Investors.

“There are times when the upward drift has looked almost too smooth, so you do get corrections. But a lot of investors will have been waiting on the…

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