European markets attempt to bounce back after U.S. sees rate-induced sell-off
- Europe investors are closely watching movements in U.S. markets after the tech-heavy Nasdaq Composite dropped 2.83% to 14,546.68 on Tuesday to record its worst day since March
- Inflation prospects and bond yields are in focus after a turbulent start to the week
- U.S. Federal Reserve Chairman Jerome Powell, European Central Bank President Christine Lagarde, Bank of Japan Governor Haruhiko Kuroda and the Bank of England’s Governor Andrew Bailey will all speak at the ECB Forum on Central Banking on Wednesday
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LONDON — European stocks advanced on Wednesday, looking to shrug off market nerves after a rate-induced sell-off in the U.S. in the previous session
TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME .FTSE FTSE 100 *FTSE 7093.25 65.15 0.93 409411277 .GDAXI DAX *DAX 15356.9 108.34 0.71 32290458 .FCHI CAC 40 Index CAC 6567.6 61.1 0.94 52336064 The pan-European Stoxx 600 climbed 0.7% by mid-afternoon, with autos adding 1.8% to lead gains while utilities bucked the upward trend to fall 0.4%
Europe investors are closely watching movements in U.S. markets after the Nasdaq Composite dropped 2.83% to 14,546.68 on Tuesday to record its worst day since March. The S&P 500 shed 2.04% and the Dow Jones Industrial Average lost 569.38 points, or 1.63%
Stocks across industries slid as the benchmark 10-year Treasury yield touched a high of 1.567%, a move that prompted tech stocks to lead the broader markets lower with Facebook, Microsoft and Alphabet losing more than 3%
Rising bond yields hurt growth stocks, including tech stocks, because they lower the relative value of future earnings, and make the popular stocks appear overvalued
Asia-Pacific stocks fell in Wednesday trade following the tumble on Wall Street while U.S. stock futures moved higher in early premarket trade
European market attention will be on central banks today with U.S. Federal Reserve Chairman Jerome Powell, European Central Bank President Christine Lagarde, Bank of Japan Governor Haruhiko Kuroda and the Bank of England’s Governor Andrew Bailey all speaking at the ECB Forum on Central Banking on Wednesday
On Tuesday, U.S. traders followed testimony from Powell to the Senate Banking Committee during which the central bank chief said that inflation could persist longer-than-expected
EU economic sentiment improved in September after declining in August, as optimism rose among consumers and the industrial and construction sectors, official data revealed Wednesday. The European Commission’s economic sentiment index hit 117.8 in September from 117.6 in August, following a record high 119.0 in July
In terms of individual share price movement, Dutch semiconductor equipment maker ASMI climbed 6.7% after projecting double-digit growth on the back of an increase in chip usage. Deutsche Bank raised its price target for the stock on Wednesday morning
At the bottom of the Stoxx 600, Royal Mail fell 6.8% after UBS downgraded the stock to “sell” from “buy” and cut its price target
