Tuesday October 4, 2022: $146.10 +$3.65 +2.56%
Oct 4, 2022 1:33:28 GMT -8
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Post by Dave on Oct 4, 2022 1:33:28 GMT -8
Good morning. We have a green pre-market this morning at +1.65% at this moment. Hopefully today will be a repeat of yesterday’s stock action.
European markets climb as global markets rally; Stoxx 600 up 2%
European markets climb as global markets rally; Stoxx 600 up 2%
The pan-European Stoxx 600 climbed 2% in early trade, with travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.
The higher open in Europe comes after a rebound on Wall Street Monday. U.S. markets rallied to start the new month and quarter on a positive note, as Treasury yields eased from levels not seen in roughly a decade. It was the best day since June 24 for the Dow, and the S&P 500′s the best day since July 27.
U.S. stock futures rose overnight, while Asia-Pacific shares also traded higher on Tuesday, bolstered by the rally on Wall Street.
UBS: Expect ‘periodic rebounds’ in stocks, but more volatility in the near term
Mark Haefele, chief investment officer at UBS Global Wealth Management, says 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% as of Friday’s close, we think the S&P 500 was looking oversold,” Haefele said in a note Tuesday morning.
He suggested that some of last week’s selling pressure may have been driven by “quarter-end rebalancing,” which has now abated as we enter the fourth quarter.
“With sentiment toward equities already very weak, periodic rebounds are to be expected. But markets are likely to stay volatile in the near term, driven primarily by expectations around inflation and policy rates,” Haefele said.
“While risk assets rebounded on Monday, we think a more sustained rally in equities is likely to require indications of a clear downtrend in U.S. inflation (e.g. at least three months of core PCE inflation of +0.2% month-over-month or lower), along with signs of a cooling labor market. This week’s JOLTS job openings data and the September labor report will be key data releases to watch.”
— Elliot Smith
The higher open in Europe comes after a rebound on Wall Street Monday. U.S. markets rallied to start the new month and quarter on a positive note, as Treasury yields eased from levels not seen in roughly a decade. It was the best day since June 24 for the Dow, and the S&P 500′s the best day since July 27.
U.S. stock futures rose overnight, while Asia-Pacific shares also traded higher on Tuesday, bolstered by the rally on Wall Street.
UBS: Expect ‘periodic rebounds’ in stocks, but more volatility in the near term
Mark Haefele, chief investment officer at UBS Global Wealth Management, says 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% as of Friday’s close, we think the S&P 500 was looking oversold,” Haefele said in a note Tuesday morning.
He suggested that some of last week’s selling pressure may have been driven by “quarter-end rebalancing,” which has now abated as we enter the fourth quarter.
“With sentiment toward equities already very weak, periodic rebounds are to be expected. But markets are likely to stay volatile in the near term, driven primarily by expectations around inflation and policy rates,” Haefele said.
“While risk assets rebounded on Monday, we think a more sustained rally in equities is likely to require indications of a clear downtrend in U.S. inflation (e.g. at least three months of core PCE inflation of +0.2% month-over-month or lower), along with signs of a cooling labor market. This week’s JOLTS job openings data and the September labor report will be key data releases to watch.”
— Elliot Smith