Stocks rebound as US new home sales surge

Stocks rebounded on Wednesday.

The S&P 500 rose 0.8 percent after three consecutive declines. The STOXX Europe 600 rose 0.7 percent after falling 1.4 percent on Tuesday, the biggest decline since 8 July. The Shanghai Composite Index rose 1.5 percent to the highest level since March 2014.

The yield on US 10-year Treasuries rose 4 basis points to 2.57 percent while oil jumped 1.4 percent.

Helping to boost investor sentiment was a report on Wednesday showing that US new home sales surged 18.0 percent in August to a 504,000 annualised pace, the strongest since May 2008.

However, on a negative note, the Ifo institute reported on Wednesday that its business climate index for Germany fell to 104.7 in September from 106.3 in August.