European markets rebounds after BoE steps in to calm markets

Stocks on the move: Rational up 12%, Barratt Developments down 9%

Rational Shares jumped more than 12% in early trade to top the Stoxx 600 after the German oven and combi-oven maker raised its revenue and profit forecast for 2022.

At the bottom of the European blue chip index, the British property developer Barratt Developments fell more than 9%.

CNBC Pro: Analyst Says This FAANG Stock Is An Evergreen Gainer — And Investors Should Buy The Dip

Tech stocks have had a tough year so far, but an analyst at Rosenblatt Securities thinks the selloff is an opportunity for long-term investors to buy the dip.

“Stay away from losers,” he said, recommending “winners in the various age-old battles and evolutionary battles” in technology.

Professional Subscribers can read more.

— Zavier Ong

Stocks could continue this ‘oversold bounce’ over the next few days, according to Wells Fargo’s Harvey

Wells Fargo’s Chris Harvey expects stocks to continue their upward move.

“The spike in short-term interest, the retail bias and BOE action all suggest stocks will continue their oversold rebound over the next few days,” he said in a statement on Wednesday. note to customers.

Stocks hit new lows earlier in the week, with the S&P 500 recording another bear market. The selloff was triggered by the Fed’s latest rate decision last week, which some investors said sent the market into oversold conditions.

As the cost of capital rises and prices approach record highs, the consensus is growing that a Fed-led recession is inevitable, Harvey said.

“We view a recession as a car accident,” he wrote. “You never know how bad it will be, but there’s almost no ‘better than expected’ outcome – so policy makers have to be careful what they wish for.”

— Samantha Subin

10-year Treasury yield falls the most since 2020

The return of the benchmark index 10-year cash flow The rating fell the most since 2020 on Wednesday, despite briefly overshooting 4% earlier in the session, after the Bank of England announced a bond-buying plan to stabilize the pound.

The 10-year Treasury yield last fell 23 basis points to 3.733%, the highest since 2020.

It hit a high of around 4.019%, a key level that was the highest since October 2008 earlier in the day before erasing those gains.

Yields and prices move in opposite directions. One basis point is equal to 0.01%.

European markets: here are the opening calls

European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.

Britain’s FTSE index is expected to open down 47 points to 7,341, Germany’s DAX down 86 points to 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB down 132 points to 22,010 , according to data from IG.

Global markets retreated after a higher-than-expected rise US consumer price index report for August that showed prices rose 0.1% for the month and 8.3% a year in August, the Bureau of Labor Statistics reported Tuesday, defying economists’ expectations that headline inflation would fall 0.1% month-on-month.

Core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK Inflation figures for August are due and Eurozone Industrial Production for July will be released.

—Holly Ellyatt

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