Global stocks were mixed Tuesday, as a recent slump in commodity
prices continued to heap pressure on the oil sector, while fresh
measures to curb volatility in China prompted a share rally
there.
The Shanghai Composite Index closed 3.7% higher after Chinese
authorities late Monday moved to clamp down on short selling by
implementing rules under which investors must wait at least one day
to cover their positions and pay back loans used to buy shares.
When shorting a stock, investors sell borrowed shares in the
belief they can buy them back at a much lower price later on,
pocketing the difference.
In Europe, the Stoxx Europe 600 lost 0.5% in early trade.
The world's benchmark oil price fell to less than $50 a barrel
on Monday for the first time in six months. Brent, the global
benchmark, fell $2.69, or 5.2%, to $49.52 a barrel on ICE Futures
Europe, representing the largest one-day loss since July 6 and the
lowest settlement since Jan. 29.
Early on Tuesday in Europe, the price of Brent was 1% higher,
hovering around the $50 mark.
The European subindex of oil and stocks fell 0.8%, and shares in
exploration company Tullow Oil PLC, offshore drilling company
Seadrill Ltd., Total SA and Statoil ASA, all fell by more than
1%.
The biggest gainer on the European index was German car
manufacturer Continental AG. The group reported double-digit second
quarter earnings on Tuesday, particularly citing growth in
Asia.
Elsewhere in equity markets, investors will be keeping a sharp
eye on the main stock index in Athens Tuesday, which opened for the
first time in just over five weeks on Monday.
The benchmark Athex Composite slumped more than 22% on Monday
before ending the day 16% lower, representing its biggest fall in
percentage terms since at least January 1991, according to Thomson
Reuters data. Early Tuesday the index was down 4.7%.
In currency markets, the euro was broadly flat against the
dollar at $1.095. The dollar was also little changed against
Japan's yen at ¥ 124.01.
Gold was 0.2% lower at $1,087.10 per troy ounce.
Write to Josie Cox at josie.cox@wsj.com
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