European shares bounce back after sharp falls

25th August 2015


European shares bounced back after the markets opened this morning in spite of another bleak day for Chinese stocks.

The FTSE 100 rose 1.6% to 5,994.11, while Germany’s Dax and Paris Cac were both up about 1.4%, according to the BBC.

Shangha’s maini Composite index closed down 7.6% at 2,964.97, while  Tokyo’s Nikkei index was 4% lower.

China’s slowing growth has prompted fears around the globe that it will result in less demand for the goods and raw materials that other countries export.

China is the second-largest economy and the second-largest importer of goods and services.

In the year to June, Shanghai’s main index more than doubled and many commentators believe it has been over-inflated.

Friday and Monday’s plunge in share prices followed weak manufacturing data.

The Chinese government has lowered the value of its currency to help improve demand for Chinese exports.

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