Global stocks across the board rose in Friday trade after a rollercoaster few days. But shares in China still ended the week almost 8 percent lower as concerns over the world's second largest economy take hold. Ciara Lee reports on how Europe is responding to the volatility.
After a white-knuckle ride of a week Asian markets extended their rally into a second day as upbeat U.S. economic data calmed investors. China's two main indices rose over 4 percent, but overall Chinese stocks lost nearly 8 percent on the week. The country's central bank injected nearly 10 billion dollars into money markets on Friday - the second such move this week. It comes after investors pulled a record amount of money out of global equity funds, according to Bank of America Merill Lynch. The 29.5 billion dollar outflow, including 19 billion dollars in just one day, was the largest since 2002. Mike Ingram from BGC says China's problems are far from over. (SOUNDBITE) (English) MARKET COMMENTATOR, BGC, MIKE INGRAM, SAYING: "They're backing the stock market in Shanghai buying up stocks. But some fundamental problems there and I would be very surprised if we got to the end of the year without it raising its head again." European stocks posted a 3.6 billion dollar outflow this week. Shares there recouped most of their losses on Thursday. But the volatile week left some blue-chip European indexes on track to end the week slightly lower. Many are now asking how exposed Europe is to China. (SOUNDBITE) (English) MARKET COMMENTATOR, BGC, MIKE INGRAM, SAYING: "External demand we know is extremely weak - that's largely an emerging markets story. German exports might well hold up. They've got a great deal of pricing power. But the rest of Europe might not be so lucky." The turbulent week also hit the commodities markets. Oil prices steadied on Friday, having enjoyed a bounce-back on Thursday. And copper dipped in morning trade as worries about oversupply resurfaced.