Chinese markets rebound slightly after volatile week

By Amy R. Connolly  |  Jan. 8, 2016 at 6:37 AM
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BEIJING, Jan. 8 (UPI) -- China's stock market closed the first week of 2016 trading Friday up 2 percent after regulators enacted a circuit breaker mechanism to calm panicky investors.

The Shanghai Composite Index finished up nearly 2 percent at 3,186.41, recovering slightly from a 7 percent drop Thursday. The Shenzhen Composite added 1.1 percent. The CSI 300 Index of the largest listed companies in Shanghai and Shenzhen bumped 2 percent, to 3,361.56.

Overall, in this first week, Chinese stocks lost about 10 percent, their worst week since the market crashed in the week ending Aug. 21.

The rising confidence in China trickled to some global markets as well. S&P 500 futures were up 1.2 percent. The MSCI Emerging Markets Index climbed 0.5 percent. European shares opened slightly higher Friday.

Despite China's rebound, there were continuing fears about the way Beijing authorities handled the nation's market this week. China twice triggered its "circuit-breaker" safeguard -- intended to prevent greater losses once shares fall to a certain threshold -- to stop trading.

The disarray in China caused chaos in global markets. U.S. stocks have had a bleak start to the new year with selling knocking down the Dow 911 points, or 5 percent. Germany's benchmark stock index, the DAX, is off 7 percent so far this year and France's CAC 40 dropped 5 percent.

Andrew V. Pestano and Doug G. Ware contributed to this report

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