U.S. equity futures are looking to erase Wednesday’s losses as stocks around the world are following the lead of China. The Shanghai Composite Index, which had been dropping, suddenly shot higher after the Chinese threatened to arrest anyone who was shorting stocks.

Chinese police vowed to arrest anyone caught “maliciously shorting stocks” and stocks quickly took off, closing higher by 5.8 percent. This was the biggest daily increase since March 2009 and the buying spread around the globe.

Shenzhen’s stock market finished up 3.76 percent and Hong Kong also bounced back gaining 3.73 percent.

However around 1,500 listed companies in China, or about half of the stock market, remain suspended and the majority of those still being traded are propped up heavily by the authorities. Beijing intervened with drastic series of measures including an interest rate cut, a suspension of public offerings and the blocking of major shareholders from selling shares, after the market lost 3.9 trillion in less than a month.

TSL Jewellery shot up 15 percent to 2.99 Hong Kong dollars or 39 cents while Emperor Watch and Jewellery gained 10.20 percent ending the day at 0.27 Hong Kong dollars or 3 cents. Esprit was not far behind up 7.39 percent to 6.83 Hong Kong dollars or 88 cents followed closely by Global Brands Group which rose 6.99 percent to 1.53 Hong Kong dollars or 20 cents.

U.S. stock futures are poised to open higher following Wednesday’s computer glitch at the New York Stock Exchange that caused trading to be halted for several hours during the day. However those gains may not hold as weekly jobless claims data was released and it showed a slight increase of 297,000, the highest level since February and inching closer to the critical level of 300,000.

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