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Stocks bounce back from sell-off

In London, equities are up 1% as traders buy back into the market after the recent spate of selling.

All trading involves risk. Losses can exceed deposits.

Yesterday stocks in London closed at a five-month low over fears that China is going through a credit bubble which could lead to a slowdown in their economy. This morning dealers closed out short positions and some investors have been picking out cheap stocks. Even though the trend over the past month is downward, is it not unusual to see a bounce back.

The mining sector is performing well today after being the heaviest losing sector yesterday. Copper is off its three-year lows and this has encouraged dealers to buy back into mineral-focused stocks.

Oil and gas company Petrofac expect a ‘modest’ growth rate this year with most of the growth centred on the second half. The share price is down 2.5% so far today.

Carpetright has announced a full-year pre-tax profit of £9.7 million, an increase of 142% compared with last year.

It’s a busy schedule of economic announcements from across the Atlantic this afternoon, including durable goods, new home sales and consumer confidence, and the data will no doubt be an indicator for the Federal Reserve’s next monetary policy move.

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