China announced that they will suspend their stock market circuit breaker on grounds that the system did not stop volatility in the markets. European stocks rallied on the news, with the DAX 30 up 0.84%, France’s CAC 40 up 0.4% and Euro Stoxx 50 up 0.64% on Friday.
The People’s Bank of China further eased worries after they set the guidance rate for the yuan higher for the first time in over nine days.
Global equity markets struggled greatly in the first week of 2016, with Wednesday marking the largest drop in China’s currency since late August. The drop in currency was followed by the suspension of the Chinese markets on Thursday after trading for less than an hour. This marks the second time in the week that China’s stock market closed due to the circuit breaker system shutting down markets after a 7% loss.
Several European companies are up on the day, with Renault SA (RENA) rallying 1.17% following the announcement that the company will be working with Nissan Motor Co. (T: 7201) in a deal that will bring 10 self driving vehicle models to the market by 2020. Volkswagen’s (VOWG_p) stock also rallied up 2.48% on the day following news that the company will meet with United States officials to negotiate a recall of vehicles affected in the diesel crisis.