Europe shares open higher despite fall in China

London, Aug 25 (IANS) Shares in London and elsewhere in Europe rebounded at the start of trading on Tuesday, despite steep falls in the Chinese stock market.

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

The gains came after Chinese stocks continued their run of big losses.

The main Shanghai Composite index closed down 7.6 percent at 2,964.97 points. Japan also saw more sharp falls and Tokyo’s Nikkei index was 4 percent lower.

The global sell-off is being driven by fears that China’s slowing growth means less business for everyone else.

China’s booming economy of the last 30 years has seen the country suck in supplies of raw materials for manufacturing and, increasingly, manufactured and luxury goods from other countries.

Weak manufacturing figures from China prompted a massive fall in shares on August 21, which was followed by another, the biggest in eight years on Monday, triggering a mass sell-off across the globe.

Capital Economics said investors had been “overreacting about economic risks in China”, arguing that “the collapse of the equity bubble tells us next to nothing about the state of China’s economy.”

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