US stocks rebound, European markets mixed after selloff; Oil surges

Stocks in the US rebounded Tuesday as European markets were mixed and shares in China slumped again a day after global trade tensions helped to hammer indices across the globe.

American stocks regained some of the ground surrendered on Monday that was inspired by uncertainty over trade policy. Investors, however, remain concerned that trade tensions between the US and China and the European Union could weigh down the world economy.

"After a rough day like yesterday, investors are evaluating the damage done and looking for some stability," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey, told Reuters.

The Dow Jones Industrial Average rose 30.31 or 0.12 percent to settle at 24,283.11. The S&P 500 gained 5.99 or 0.22 percent to finish at 2,723.06 while the NASDAQ Composite Index added 29.62, or 0.39 percent to 7,561.63.

On the commodity front, oil prices rallied, topping $70 a barrel for the first time since May as Washington pushed allies to halt importing crude from Iran. August West Texas Intermediate crude jumped $2.45, or 3.6 percent, to settle at $70.53 a barrel on the New York Mercantile Exchange.

In China, the benchmark Shanghai Composite slid into bear market territory Tuesday, closing more than 20 percent below its recent high in January.

"It's a combo effect of concerns about the trade war and China's GDP growth," said Dickie Wong, head of research at Hong Kong-based broker Kingston Securities according to CNN.

The Shanghai Composite Index was down 0.52 percent at 2,844.51, the lowest closing since June of 2016. The Shenzhen Component Index edged up 0.16 percent to 9,339.37.

Markets were generally down in Asia with 11 key indices including those in South Korea and Australia declining, compared with seven, including Japan and Thailand, which managed to produce small gains.

European markets finished mixed as the United Kingdom's FTSE 100 gained 0.37 percent while Germany's DAX and France's CAC 40 were lower, falling 0.29 percent and 0.05 percent respectively.

Contact the writer at paulwelitzkin@chinadailyusa.com