European markets bounce as global markets rally; Stoxx 600 up 3%

Tui jumps 9.5% as travel stocks rally

German travel agency You jumped 9.5% in the late afternoon as travel and leisure stocks surged amid a broader rally in European stocks.

European markets rose on Tuesday, supported by an overnight rally on Wall Street.

— Karen Gilchrist

US stocks open higher; Dow jumps 400 points

U.S. stocks opened higher on Tuesday as Wall Street sought to build on a strong rally seen in the previous session.

The Dow Jones Industrial Average jumped 388 points, or 1.3%, in early trading while the S&P 500 traded up 1.9%. The Nasdaq Composite also rose 2.4%.

— Karen Gilchrist

Stocks on the move: Greggs up 9%, Drax down 7%

Shares of the British bakery chain Greggs gained 9.5% on early afternoon trading after a strong earnings report, which showed an increase in quarterly sales despite the worsening cost of living crisis and falling confidence consumers in the UK

At the bottom of the Stoxx 600, Drax Group fell 7.5% after a BBC Panorama investigation questioned the UK power company’s logging methods.

-Elliot Smith

Credit Suisse will remain ‘under pressure’, but analysts wary of Lehman comparison

The logo of Swiss bank Credit Suisse is seen at a branch in Zurich, Switzerland, November 3, 2021.

Arnd Wlegman | Reuters

Swiss credit Shares continued to rally on Tuesday from the previous session’s low of 3.60 Swiss francs ($3.64), but were still down more than 53% on the year.

Based on Credit Suisse’s weaker return on equity profile compared to its European investment banking counterparts, US investment research firm CFRA on Monday lowered its price target for the stock to 3, 50 Swiss francs ($3.54) per share, compared to 4.50 francs.

“The number options supposed to be considered by CSincluding the exit of the US investment bank, the creation of a “bad bank” to hold risky assets and a capital increase, indicate that a major overhaul is needed to turn the bank around, in our view”, said Firdaus Ibrahim, financial analyst at CFRA.

“We believe the negative sentiment surrounding the stock will not subside any time soon and believe its share price will continue to be under pressure. A compelling restructuring plan will help, but we remain skeptical given its poor track record in past restructuring plans.”

Read the full story here.

-Elliot Smith

Treat stock market volatility as your friend, not your foe, analyst says

Ann Miletti, head of active stocks at Allspring Global Investments, said “what we’ve seen over the past three quarters has been like a storm, and every storm lacks rain at some point.”

Eurozone producer price inflation beats expectations in August

Eurozone producer prices rose 5% month on month in August, Eurostat showed on Tuesday, slightly ahead of expectations of a monthly rise of 4.9%.

On a yearly basis, factory gate prices in the common 19-member currency bloc soared 43.3%, mainly due to soaring energy costs, which rose 11.8% a year earlier. month on month and 116.8% year on year.

-Elliot Smith

CNBC Pro: Credit Suisse is under pressure, but short sellers appear to be targeting another global bank

Investor anxiety Swiss credit sent its shares tumbling, but short sellers appear to be targeting another European bank, the data shows.

Credit Suisse is only the eighth most shorted European bank, with 2.42% of its free float used to bet against it, according to data analytics firm S3 Partners.

Some French, Italian and German banks are even more heavily shorted.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

UBS: Expect ‘periodic bounces’ in stocks, but more near-term volatility

Mark Haefele, chief investment officer at UBS Global Wealth Management, said investors can expect periodic rebounds in stocks like we’re seeing today, but volatility will persist.

“After falling more than 9% in September and extending its year-to-date decline to nearly 25% at Friday’s close, we believe the S&P 500 appeared oversold,” Haefele said in a note Tuesday. morning.

He suggested that some of the selling pressure in the past week may have been driven by “end-of-quarter rebalancing”, which has now eased as we enter the fourth quarter.

“With sentiment towards equities already very weak, periodic rebounds are to be expected. But markets are likely to remain volatile in the near term, primarily driven by inflation and policy rate expectations,” Haefele said.

“As risk assets rebounded on Monday, we believe a more sustained rally in equities will likely require indications of a clear downward trend in US inflation (e.g., at least three months of PCE inflation base +0.2% month-over-month or less), along with signs of a slowing labor market.This week’s JOLTS job openings data and September will be key data to watch.”

—Elliot Smith

Stocks on the move: Greggs, Accelleron up 5%

Shares of the British bakery chain Greggs gained 5.6% in early trade after reporting an increase in quarterly sales despite the worsening cost of living crisis and falling consumer confidence in the UK

Acceleron shares rose 5% as investors bought the stock at a discount following the former ABB Weak supercharger unit market debut on Monday.

CNBC Pro: Want a “defensive move” with a return of up to 5%? Buy this fund, says the strategist

It’s been a volatile year for both stocks and bonds, Wall Street’s major indexes ends its worst month since March 2020and Treasury yields remain high.

However, David Dietze, chief investment strategist at Point View Wealth Management, says “pockets of opportunity” still exist.

“Short-term defensive moves are probably warranted,” Dietze told CNBC’s “Street Signs Asia” on Monday, and named his favorite fund to play in the market right now.

Pro subscribers can learn more here.

—Weizhen Tan

Look at Q4 earnings forecast more than Q3 actuals, says S&P Global

According to S&P Global, fourth-quarter earnings forecasts provided by companies when releasing third-quarter results will be far more important to the future direction of the market than the actual third-quarter numbers themselves.

“October brings earnings, with third-quarter estimates already down 7%, and the numbers whispering little more than that,” wrote Howard Silverblatt, the index’s senior analyst over the weekend. “The biggest concern (than the actual numbers for Q3, when consumers were still spending) is the guidance for Q4, as consumers have pulled back, inflation continues, and the Fed’s ‘adjustments’ will have a more substantial impact.”

Analysts expect third-quarter S&P 500 earnings to rise 6.1% from the same quarter a year ago, and nearly 18% from the second quarter of 2022, S&P Global said.

Next year estimates call for earnings growth of 14.3% over 2022 and a corresponding forecast P/E ratio of 15.0.

Silverblatt also looked at the typical performance of the S&P 500 in the month of October. “Historically, the index has shown gains 57.4% of the time, with an average gain of 4.18% for up months, an average decrease of 4.67% for down months, and a decrease overall average of 0.46%,” he wrote.

–Scott Schnipper

CNBC Pro: Here’s What’s Next For Stocks, According To Wall Street Pros

September is finally behind us, much to the relief of many equity investors who endured a difficult month, with all major US indices posting steep losses.

With a historically weak month now firmly in the rearview mirror, what is the outlook for equities as we enter the fourth quarter of the year?

CNBC Pro scoured the research to find out what Wall Street is thinking.

Pro subscribers can find out more here.

— Zavier Ong

European markets: here are the opening calls

European stocks are heading for a higher open on Tuesday, building on the gains seen in yesterday’s trading session.

Britain’s FTSE is expected to open 30 points higher at 6,934, Germany’s DAX 126 points higher at 12,324, France’s CAC 40 58 points higher at 5,850 and Italy’s FTSE MIB 245 points higher at 21,043, according to IG data.

The expected higher open in Europe comes after a rebound on Wall Street on Monday. There, stocks rallied to start the new month and quarter on a positive note, as Treasury yields fell from levels not seen in about a decade. It was the best day since June 24 for the Dow and the S&P 500 the best day since July 27.

Earnings come in from Greggs on Tuesday and Eurozone producer price data for August is released.

—Holly Ellyatt

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