Markets rally on hopes that worst is over for China

Europe’s shares climbed the most in a month, with banks posting their biggest surge since October 2011, on optimism that China’s economy is stabilising at last.

Commodity producers led gains after data showed that China’s exports jumped the most in a year and declines in imports narrowed. The UK market, rich in mining stocks, advanced, with the Ftse 100 Index turning positive for 2016. Bank stocks, which suffered the most in the first quarter, surged 6.3% as a group.

Darren McKinley, equity analyst at Merrion Capital, said that Dublin’s Iseq had however, underperformed other stockmarkets yesterday, as investors went “risk on” to buy banks, car makers, energy and materials companies.