This is CNBC’s live blog covering the European markets.
European stocks advanced on Tuesday, building on gains from yesterday’s trading session.
The pan-European Stoxx 600 was up 1.6% in early trade, with travel and leisure stocks adding 2.9% to lead gains as all sectors and major bourses entered positive territory.
The higher open in Europe comes after a recovery in Wall Street on Monday. US markets rallied to start the new month and quarter on a positive note as US 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.
US stock futures rose overnight while Asia Pacific stocks also traded higher on Tuesday, helped by Wall Street’s rally.
Stocks on the move: Greggs, Accelleron up 5%
Shares in British bakery chain Greggs rose 5.6% in early trade after reporting a rise in quarterly sales despite the deepening cost-of-living crisis and falling consumer confidence in the UK
Accelleron shares gained 5% as investors bought the stock at a discount after Monday’s weak market debut from ABB’s former turbocharger unit.
CNBC Pro: Want a “defensive move” with up to a 5% return? Buy this fund, the strategist says
It’s been a volatile year for both stocks and bonds, with major Wall Street indices just finishing their worst month since March 2020 and government bond yields remaining elevated.
However, David Dietze, chief investment strategist at Point View Wealth Management, says there are still “opportunity spaces.”
“Short-term defensive measures are probably warranted,” Dietze told CNBC’s Street Signs Asia on Monday, citing his favorite fund currently playing in the market.
Pro subscribers can read more here.
— Wheat Tan
Look at fourth-quarter earnings forecasts more than actual third-quarter numbers, says S&P Global
The fourth-quarter earnings forecasts that companies provide when reporting third-quarter results will be far more important to the future direction of the market than the actual third-quarter numbers themselves, believes S&P Global.
“October brings gains with Q3 estimates already down 7% and whisper numbers a little more than that,” Howard Silverblatt, senior index analyst, wrote over the weekend. “The bigger concern (than the actual numbers for the third quarter when consumers were still spending) is the outlook for the fourth quarter as consumers have declined, inflation is persistent and the Fed’s ‘adjustments’ will have a larger impact .”
Analysts are forecasting the S&P 500’s third-quarter growth of 6.1% year-over-year and nearly 18% growth from the second quarter of 2022, according to S&P Global.
Estimates for next year call for earnings growth of 14.3% over 2022 and a corresponding expected P/E of 15.0.
Silverblatt also looked at the typical performance of the S&P 500 for the month of October. “Historically, the index has risen 57.4% of the time, with an average gain of 4.18% in the up months, an average decline of 4.67% in the down months, and an average overall decline of 0.46%” , he wrote.
– Scott Snapper
CNBC Pro: Here’s what’s coming 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 in which all major US indices posted severe losses.
With a historically weak month now firmly in the rearview mirror, what’s the outlook for equities as we enter the fourth quarter of the year?
CNBC Pro scoured the research to find out what Wall Street thinks.
Pro subscribers can read more here.
– Zavier Ong
European Markets: Here are the opening calls
European stocks head for a higher open on Tuesday, building on gains recorded in yesterday’s trading session.
The UK FTSE index is expected to open 30 points higher at 6,934, Germany’s DAX 126 points higher at 12,324, France’s CAC 40 up 58 points at 5,850 and Italy’s FTSE MIB 245 points higher at 21,043, according to data from IG.
The higher open expected in Europe comes after a recovery in Wall Street on Monday. There, stocks rallied to start the new month and quarter on a positive note as Treasury yields declined 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.
Gains come from Greggs on Tuesday and euro-zone producer price data for August is released.
— Holly Ellyatt