According to Bloomberg, China’s government intervened to boost the stock market today.
The authorities want the market to stabilize ahead of a September 3 military parade celebrating the World War II victory over Japan, said the people who asked to stay unnamed because the move was not public.
Beijing bought blue-chip stocks, according to one of the people.
This would explain that late rally in Shanghai,
in which the index closed at 5.34%. It also suggests the government will keep
propping up the market, if needed, until the WWII commemoration is over.
Elsewhere, Germany's DAX rallied 3%, while France’s CAC 40 and London's FTSE 100 were both up around 2.5%.
U.S. stock futures are expected to open higher on Thursday.
During early morning hours in New York, the blue-chip DJIA futures surged 195 points, or 1.2%, the S&P 500 futures added 21 points, or 1.1%, while the Nasdaq 100 futures rose 60 points, or 1.42%.
A day earlier, the Dow jumped more than 600 points, the S&P 500
soared 3.9% to bounce off the correction territory, while the Nasdaq added 4.2%, boosted by positive economic data and dovish comments from a
key Federal Reserve official who said a rate hike in September now looks "less compelling".
