European markets rise as global markets rally; The Stoxx 600 rose 2%


CNBC Pro: Credit Suisse is under pressure, but short sellers are eyeing another global bank

Investor concerns about Credit Suisse have sent shares down, but short sellers appear to be eyeing another European bank.

Credit Suisse is the shortest European bank with 2.42% of its shares used to bet against it, according to data analyst firm S3 Partners.

Some French, Italian and German banks have more short-term circulation.

CNBC Pro subscribers can read more here.

– Ganesh Rao

UBS: Expect ‘periodic rebound’ in equities, but more volatility in the near term

Mark Haefele, chief investment officer at UBS Global Wealth Management, says investors can expect cyclical rebounds like we saw in stocks today, but volatility will continue.

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

He suggested that some of last week’s selling pressure could be moderated by “end-of-quarter rebalancing” as we head into the fourth quarter.

“Periodic rebounds are expected as equity sentiment is already very subdued. But markets will remain volatile in the near term, primarily based on expectations around inflation and policy rates,” Haefele said.

“While risk assets rebounded on Monday, we believe a more sustained rally in stocks will require signs of a clear downward trend in US inflation (eg at least a three-month core PCE inflation rate of +0.2% monthly or lower). , labor along with signs of a cooling market. This week’s JOLTS jobs data and the September labor report will be key data releases to watch.”

– Elliot Smith

Stocks on the move: Greggs, Accelleron up 5%

Shares in British bakery chain Greggs rose 5.6% in early trade after it reported a rise in quarterly sales despite a deepening lifestyle crisis and falling consumer confidence in Britain.

Shares of Accelleron rose 5% on Monday as investors snapped up the stock at a discount after the former ABB turbocharger’s weak market debut.

CNBC Pro: Want a ‘defensive move’ with up to 5% returns? Buy this stock, says the strategist

It’s been a volatile year for both stocks and bonds, with major Wall Street indexes ending their worst month since March 2020 and Treasury yields remaining high.

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

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

Pro subscribers can read more here.

– Weizhen Tan

S&P Global says to look more closely at fourth-quarter earnings figures than third-quarter actuals

S&P Global believes that fourth-quarter earnings forecasts that companies give when they report third-quarter results will be more important to the market’s future direction than third-quarter actual numbers.

“Estimates for October 3Q are already down 7%, with whisper numbers slightly higher,” chief index analyst Howard Silverblatt wrote over the weekend. “The bigger concern (rather than the actual numbers for 3Q where consumers are still spending) is the guidance for 4Q as consumers retreat, inflation continues and the Fed’s ‘tweaking’ will have a more severe impact.”

Analysts at S&P Global forecast third-quarter earnings for the S&P 500 to rise 6.1% from the same quarter a year ago, and almost 18% in the second quarter of 2022.

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

Silverblatt also looked at typical performance for the S&P 500 in October. “Historically, the index posts gains 57.4% of the time, with an average gain of 4.18% for top months, an average decline of 4.67% for bottom months, and an overall average decline of 0.46%,” he said.

— Scott Schnipper

CNBC Pro: Here’s what’s next for stocks, according to Wall Street experts

September is finally behind us, with many stocks enduring a tough month with all the major US indices suffering sharp losses.

With a historically weak month firmly in the rearview mirror, what’s the outlook for stocks as we head into the fourth quarter of the year?

CNBC Pro did the research to find out what Wall Street thinks.

Pro subscribers can read more here.

– Xavier Ong

European markets: Here are the opening calls

European shares are headed for a higher open on Tuesday, building on gains seen in yesterday’s trading session.

UK’s FTSE is expected to open up 30 points to 6,934, Germany’s DAX up 126 points to 12,324, France’s CAC 40 up 58 points to 5,850 and Italy’s FTSE MIB up 245 points to 21,043.

The expected higher open in Europe comes after a rebound on Wall Street on Monday. Stocks there rose to start the new month and quarter on a positive note as Treasury yields fell from levels not seen in nearly a decade. It was the Dow’s best day since June 24 and the S&P 500’s best since July 27.

Earnings are due from Greggs on Tuesday, with eurozone producer price data for August released.

– Holly Elliott



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