China bounce ends five-day losing streak for stocks

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WSJ, United & NYSE Woes Are Nada Compared to China's Crisis

World stocks snapped a five-day losing streak on Thursday, as Beijing halted a rout in Chinese stocks and the Federal Reserve signaled it might be too soon to raise U.S. interest rates.

European bourses and bonds made early gains as strong export figures from Germany and hopes that Greece's debt negotiations will succeed complemented the overnight rebound in Asia and commodity markets.

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China bounce ends five-day losing streak for stocks
A man holds prayer beads while monitoring stock prices at a brokerage house in Beijing Monday, July 13, 2015. Chinese authorities have accused securities firms of manipulating share prices and allowing improper trading during the country's market plunge, in a possible effort to deflect blame for investor losses totaling several trillion dollars. (AP Photo/Andy Wong)
A man checks on stock prices at a brokerage house in Beijing Monday, July 13, 2015. Chinese authorities have accused securities firms of manipulating share prices and allowing improper trading during the country's market plunge, in a possible effort to deflect blame for investor losses totaling several trillion dollars. (AP Photo/Andy Wong)
FILE - In this Friday, July 10, 2015, file photo, a Chinese investor monitors stock prices as he sits in a brokerage house in Beijing. Asian stocks rose for a second day on Friday as the Greek government proposed a broad financial overhaul to its creditors and Beijing's attempts to arrest a sharp slide in the Chinese market appeared to be working. However, most Asian markets were still in the red from a week earlier. (AP Photo/Mark Schiefelbein, File)
QINGDAO, CHINA - JULY 03: (CHINA OUT) Investors observe stock market at a stock exchange hall on July 3, 2015 in Qingdao, Shandong Province of China. Chinese shares continued to decline on Friday. the benchmark Shanghai Composite Index depreciated 5.77%, to at close at 3682.92 pointes, lowest point on Friday. (Photo by ChinaFotoPress/ChinaFotoPress via Getty Images)
SHANGHAI, CHINA - JULY 03: (CHINA OUT) An investor observes stock market at a stock exchange hall on July 3, 2015 in Shanghai, China. Chinese shares continued to decline on Friday. the benchmark Shanghai Composite Index depreciated 5.77%, to at close at 3682.92 pointes, lowest point on Friday. (Photo by ChinaFotoPress/ChinaFotoPress via Getty Images)
Investors talk to each other as they check stock prices at a securities firm in Wuhan, in central China's Hubei province on July 3, 2015. Shanghai shares on July 3 extended their plunges of recent weeks, ending the morning session down more than three percent in volatile trading as analysts said panic was setting in. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
Investors monitor stock prices at a securities firm in Wuhan, in central China's Hubei province on July 3, 2015. Shanghai shares on July 3 extended their plunges of recent weeks, ending the morning session down more than three percent in volatile trading as analysts said panic was setting in. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
Investors talk to each other as they check stock prices at a securities firm in Wuhan, in central China's Hubei province on July 3, 2015. Shanghai shares on July 3 extended their plunges of recent weeks, ending the morning session down more than three percent in volatile trading as analysts said panic was setting in. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
Investors talk in front of a board displaying share prices at a security firm in Shanghai on July 1, 2015. Shanghai shares closed down more than five percent on July 1, resuming their downward trajectory a day after recording their biggest gains in more than six years. AFP PHOTO CHINA OUT (Photo credit should read STR/AFP/Getty Images)
An investor checks share prices at a security firm in Shanghai on July 1, 2015. Shanghai shares closed down more than five percent on July 1, resuming their downward trajectory a day after recording their biggest gains in more than six years. AFP PHOTO CHINA OUT (Photo credit should read STR/AFP/Getty Images)
Investors talk in front of a board displaying share prices at a security firm in Shanghai on July 1, 2015. Shanghai shares closed down more than five percent on July 1, resuming their downward trajectory a day after recording their biggest gains in more than six years. AFP PHOTO CHINA OUT (Photo credit should read STR/AFP/Getty Images)
An investor walks past a share prices board at a security firm in Hangzhou, eastern China's Zhejiang province on June 30, 2015. AFP PHOTO CHINA OUT (Photo credit should read STR/AFP/Getty Images)
People walk past an electronic display showing the Hang Seng Index on June 30, 2015. Asian markets rebounded after the previous day's rout, despite Greece being just hours away from default, while Shanghai surged in volatile trading that saw swings of more than eight percent. AFP PHOTO / ISAAC LAWRENCE (Photo credit should read Isaac Lawrence/AFP/Getty Images)
TO GO WITH China-economy-stocks, FOCUS by Fran Wang This photo taken on June 26, 2015 shows an investor checking the share prices in a stock firm in Fuyang, east China's Anhui province. When China's main share index hit a seven-year high earlier this month, it topped off a run that had seen it more than double in value over the past year, placing it among the world's top performers. AFP PHOTO CHINA OUT (Photo credit should read STR/AFP/Getty Images)
Investors check share prices in a stock firm in Fuyang, east China's Anhui province on June 29, 2015. Chinese shares plunged in morning trading on June 29, extending losses from the past two weeks despite a surprise interest rate cut at the weekend. AFP PHOTO CHINA OUT (Photo credit should read STR/AFP/Getty Images)
TO GO WITH China-economy-stocks, FOCUS by Fran Wang This photo taken on June 26, 2015 shows an investor checking the share prices in a stock firm in Fuyang, east China's Anhui province. When China's main share index hit a seven-year high earlier this month, it topped off a run that had seen it more than double in value over the past year, placing it among the world's top performers. AFP PHOTO CHINA OUT (Photo credit should read STR/AFP/Getty Images)
A Chinese stock investor monitors share prices at a securities firm in Fuyang, in China's Anhui province on June 19, 2015. Shanghai shares plunged 6.42 percent on June 19, ending a torrid week as the benchmark index was hit by tight liquidity and profit-taking after a powerful surge over the past year. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
Chinese stock investors react as they check prices at a securities firm in Fuyang, in China's Anhui province on June 19, 2015. Shanghai shares plunged 6.42 percent on June 19, ending a torrid week as the benchmark index was hit by tight liquidity and profit-taking after a powerful surge over the past year. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
A Chinese investor takes a nap in a brokerage house in Beijing, Friday, July 10, 2015. Asian stocks rose for a second day on Friday as the Greek government proposed a broad financial overhaul to its creditors and Beijing's attempts to arrest a sharp slide in the Chinese market appeared to be working. But most Asian markets were still in the red from a week earlier. (AP Photo/Mark Schiefelbein)
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China's main stock market jumped 6.4 percent -- almost as much as it had fallen the previous day -- after its securities regulator ordered shareholders with stakes of more than 5 percent not to sell shares for the next six months.

The advance brought relief throughout Asia. A 1.8 percent climb by MSCI's broadest index of Asia-Pacific shares outside Japan was its biggest since April. The main emerging markets index scored its best gain since January.

Europe's mining and metals stocks, which are closely linked to China's fortunes, led the pan-European FTSEurofirst 300 index up 0.9 percent, although investors were far from care-free.

Greek Prime Minister Alexis Tsipras has until midnight to propose spending-cut plans that will convince the euro zone to give Athens a three-year loan to rescue it from bankruptcy. Without the money, it will have to print another currency, probably leading to its exit from the euro.

"The midnight deadline for Europe seems a long way away," said Nick Parsons, global head of forex at National Australia Bank in London.

"Overnight we have a traditional risk-on mood, but there is a general wariness that is crimping investor participation in the market. The order flow really is very thin," he added.

Bond markets appeared hopeful that a deal would still be reached. Italian, Spanish and Portuguese bond yields all fell in early trading. [GVD/EUR]

Even if Greece does end up out of the euro, the European Central Bank has made clear it is ready to jump in to limit any fallout. Ardo Hansson, Estonia's ECB policymaker, said the bank was being forced to face up to the possibility of a Greek exit.

"We can use a wide range of non-standard monetary policy measures and close cooperation with other central banks. We are prepared to implement these capabilities if needed," he said in a Estonian newspaper interview.

COMMODITY COMFORT

The rebound in China and the drop in the dollar following Wednesday's Fed minutes helped steady commodity markets.

"Many participants emphasized that, in order to determine that the criteria for beginning policy normalization had been met, they would need additional information indicating that economic growth was strengthening, that labor market conditions were continuing to improve, and that inflation was moving back toward the Committee's objective," the minutes said.

U.S. crude advanced 1.6 percent to $52.48 but has still shed nearly eight percent so far this week. Brent was $57.88 a barrel.

The Australian dollar, often used in proxy China trades, gained 0.6 percent to $0.7473. Copper on the London Metal Exchange rose 0.9 percent to $5,569 a tonne after hitting a six-year trough of $5,240 a tonne on Wednesday.

A bounce by iron ore futures < DCIOcv1> in China pointed toward a rebound later in the day for benchmark spot iron, which retreated to a decade-low $45 a tonne overnight.

Oil markets were also watching talks on a potential nuclear deal with Iran that could ease its long-running sanctions.

Iran has offered "constructive solutions," the Iranian Students News Agency (ISNA) reported on Wednesday, but Western officials suggested they had heard nothing new from Tehran.

Bankers Despair as China Freezes Trade
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