Global stocks broke their losing streak Thursday as China rebounded and hopes of an improvement in the Greek debt crisis lifted stocks. Bobbi Rebell reports.
World equity markets snapped a five-day sell-off Thursday, as Beijing regulators stopped a rout in Chinese stocks. They put heavy restrictions on selling securities which halted a global market tumble. Oppenheimer Funds' Alec Young doesn't think the troubles in China will have a spillover effect. SOUNDBITE: ALEC YOUNG, INVESTMENT STRATEGIST, OPPENHEIMER FUNDS (ENGLISH) SAYING: "For a variety of reasons, we are not very worried that the stock market volatility that we are seeing in China is going to translate into a major negative surprise in terms of their economy, and therefore, have a negative knock-on effect on U.S. equities and European Equities." In fact, in Europe there were new hopes that Greece could be kept in the euro currency union. European shares rallied more than two percent as Prime Minister Alexis Tsipras rushed to finalize a package of Greek tax hikes and pension reforms needed to win a new aid lifeline. And the energy markets are bouncing back. Brent crude rose more than $2 a barrel at one point as good economic data from Germany, firmer stock markets and strong gasoline demand lifted oil prices. All that bodes well for the U.S. market. SOUNDBITE: ALEC YOUNG, INVESTMENT STRATEGIST, OPPENHEIMER FUNDS (ENGLISH) SAYING: "Here in the U.S., with the second quarter earnings season starting, we think you are gong to see more beating low expectations as far as earnings are concerned. We couple that with valuations that while they may be a little above long term averages. We don't think are in nosebleed territory by any means. And we are basically recommending that our clients stay the course through a lot of this macro noise." According to Thomson Reuters, second quarter earnings are expected to grow 5.7% from the second quarter of last year.