Stocks rebound after Evergrande's price plunge
Strategist: "There are still problems the market is struggling with"

Global equity markets rebounded on Tuesday, while the US dollar remained relatively stable after heavy stock sales the previous day. Investors rated the extent of contagion from the plight of debt-ridden construction company China Evergrande.
The MSCI global stock index .MIWD00000PUS rose 0.35% after recording its largest percentage decline in two months on Monday. European indices rose solidly while major stocks on Wall Street rose in afternoon trading.
The price movements in bonds and currencies were relatively subdued. Safe-deposit bids surged on Monday as investors turned risk averse.
Investors remained focused on the situation at Evergrande, where lingering default fears dwarfed efforts by the indebted corporation's chairman to build confidence as Beijing showed no signs of intervening, to prevent domino effects in the world economy.
"There are still problems the market is grappling with," said David Joy, chief marketing strategist at Ameriprise Financial (NYSE: AMP) in Boston. "But stabilization is a good thing after yesterday's downtrend.
On Wall Street, the Dow Jones Industrial Average .DJI rose 128.56 points, or 0.38%, to 34,099.03, the S&P 500 .SPX gained 13.23 points, or 0.30%, to 4,370.96, and the Nasdaq Composite .IXIC gained 66.90 points or 0.45% to 14,780.80.
The Cboe Volatility Index .VIX fell after hitting a four-month high the previous day, and most recently fell 2.25 points to 23.46.
The pan-European STOXX 600 index .STOXX rose by 1%, the German DAX .GDAXI by 1.4%.
Canada's major equity index, .GSPTSE, rose as Prime Minister Justin Trudeau's narrow federal election victory raised hopes that his administration would keep stimulus packages open.
Central bank meetings in the United States and elsewhere around the world should soon be the focus of markets. A meeting of the Federal Reserve will end on Wednesday and investors are waiting to see when it will ease its bond-buying program.
In forex trading, the dollar index = USD fell 0.053%, while the euro EUR = rose 0.02% to $ 1.1727. The Japanese yen gained 0.12% against the dollar to 109.25.
"For now, if you want to bet on the dollar, just wait until you get a better sense of what is going to happen to Evergrande and what the Chinese government is going to do," said Edward Moya, senior market analyst at OANDA in New York.
The benchmark 10-year US10YT = RR fell 3/32 to a 1.318% return, compared to 1.309% late Monday.
Oil prices rose slightly in a volatile session as worries over the global consumption outlook offset the battle by major OPEC producers for enough supply to meet rising demand.
US crude CLc1 rose 0.23% to $ 70.45 a barrel and Brent LCOc1 was $ 74.07, an increase of 0.2%.
The spot gold price XAU = rose 0.7% to $ 1,776.27 an ounce.
