By Hilary Russ
NEW YORK, July 12 (Reuters) – Stock markets around the world bounced back on Thursday, with U.S. gains led by merger activity and earnings optimism that offset concerns over an escalating U.S. trade battle with China that had weighed on markets a day earlier.
Metals also rebounded, with bargain-hunting investors scrambling to buy, while oil prices struggled to hold on after clawing back big losses.
Stocks on Wall Street got a boost from technology and industrial shares. CA Inc jumped 18.1 percent after chipmaker Broadcom announced a surprise $18.9 billion deal to buy the U.S. business software company.
There was also some relief for markets as President Donald Trump came out of a meeting of the NATO military alliance in Belgium with a positive assessment, after a string of earlier barbs.
“We had a fantastic meeting at the end,” Trump told reporters. “Very unified, very strong, no problem.”
The Dow Jones Industrial Average rose 165.53 points, or 0.67 percent, to 24,865.98, the S&P 500 gained 14.62 points, or 0.53 percent, to 2,788.64 and the Nasdaq Composite added 64.84 points, or 0.84 percent, to 7,781.45.
Stocks in Shanghai jumped more than 2 percent as trade war tensions faded to the background for now.
“While markets have typically reacted negatively to any escalation on trade, the overall impact has been relatively modest under the circumstances which suggests investors are far from panic mode right now,” Craig Erlam, Oanda senior market analyst, said in a note.
“There still seems to be some hope that common sense will prevail and a full blown trade war will be averted.”
The pan-European FTSEurofirst 300 index rose 0.80 percent and MSCI’s gauge