European markets bounce back after BoE steps in to calm markets

European markets bounce back after BoE steps in to calm markets
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Porsche shares rose on their debut on the Frankfurt market

Porsche shares rose almost 2% above their IPO price in their stock market debut on Thursday, in what is being billed as one of Europe’s biggest public offerings.

Shares of the luxury carmaker initially traded at 84 euros ($81) earlier in the day.

The share price hit an all-time high on Wednesday, valuing the company at 75 billion euros.


Read CNBC’s full coverage here.

– Hannah Ward-Glenton

Stocks on the move: Rational rose 12%, Barratt Developments fell 9%

Rational Shares rose more than 12% in early trade to lead the Stoxx 600 after the German maker of combi steamers and ovens raised its sales and profit forecast for 2022.

British property developer at the bottom of the European blue chip index Barratt Developments decreased by more than 9%.

CNBC Pro: Analyst says these FAANG stocks are evergreen winners — and investors should buy the bottom

Tech stocks have had a rough year so far, but a Rosenblatt Securities analyst believes the selloff is an opportunity for long-term investors to get a bargain.

“Stay away from the losers,” he said, advising the “winners of various worldly battles and evolutionary battles” in technology.

Pro subscribers can read more.

– Xavier Ong

Wells Fargo’s Harvey says stocks could continue this “oversold bounce” over the next few days.

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

“Short interest rate hikes, skewed retail sales and BOE actions all suggest that stocks will continue to be oversold over the next few days,” he said in a note to clients on Wednesday.

Stocks hit new lows earlier in the week, with the S&P 500 entering a new bear market. The sell-off was triggered by the Fed’s last rate decision last week, which some investors believe sent the market into oversold conditions.

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

“We look at a recession like a car accident,” he said. “You never know how bad it’s going to be, but there’s almost no ‘better than expected’ outcome – so politicians have to be careful what they wish for.”

– Samantha Subin

The 10-year Treasury yield fell the most since 2020

Benchmark revenue 10-year Treasury The note fell the most since 2020 on Wednesday, despite briefly surging above 4% earlier in the session after the Bank of England announced a bond-buying plan to stabilize the British pound.

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

It hit a high of about 4.019%, the highest level since October 2008, the day before it erased those gains.

Income 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.

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

Global markets retreated after a better-than-expected reading US consumer price index On Tuesday, the Bureau of Labor Statistics reported that prices rose 0.1% month-on-month and 8.3% year-on-year in August, defying economist expectations that headline inflation would ease 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.

August inflation figures are expected in the UK and eurozone industrial production for July will be published.

– Holly Elliott

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