European markets set to bounce back at the open in rollercoaster week for stocks
- European stocks are expected to bounce back on Thursday, opening higher and continuing a week that has seen wild swings in global market sentiment and trading.
- The U.K.'s FTSE index is seen opening 80 points higher at 7,070, Germany's DAX 198 points higher at 15,156, France's CAC 40 up 88 points at 6,576 and Italy's FTSE MIB 228 points higher at 25,552, according to data from IG.
European stocks are expected to bounce back on Thursday, opening higher and continuing a week that has seen wild swings in global market sentiment and trading.
The U.K.'s FTSE index is seen opening 80 points higher at 7,070, Germany's DAX 198 points higher at 15,156, France's CAC 40 up 88 points at 6,576 and Italy's FTSE MIB higher by 228 points at 25,552, according to data from online trading platform IG.
The higher open for Europe on Thursday continues a trend of wild trading swings already seen in October. On Wednesday, negative sentiment characterized European market trades as U.S. Treasury yields briefly spiked, with inflation concerns weighing on global markets.
Sentiment turned positive after the benchmark U.S. 10-year Treasury yield retreated from more than three-month highs on Wednesday and U.S. stocks staged a comeback from their lows as investors bought the dip in technology names.
Markets also reacted to September's ADP report which showed that private companies hired at a faster clip than expected last month, despite worries about the delta variant. Wednesday's report initially sent bond yields higher, unnerving investors about rates and inflation and how soon the Federal Reserve will begin removing policy stimulus. The next U.S. data point in focus is the nonfarm payrolls report on Friday.
Overnight, shares in Asia-Pacific rose with Hong Kong stocks leading gains; mainland China markets remain closed on Thursday for the holidays.
Meanwhile U.S. stock futures edged higher after the Dow Jones Industrial Average reclaimed a 459-point loss from Wednesday as investor concerns about a debt ceiling deal eased.
That came after Senate Minority Leader Mitch McConnell offered a short-term suspension of the U.S. debt ceiling to avert a national default and economic crisis, which economists warn could be disastrous. U.S. Treasury Secretary Janet Yellen warned Tuesday that the U.S. should "fully expect" a recession if that happens.
Back in Europe, earnings come from U.K. betting firm Ladbrokes on Thursday and data releases including Swiss unemployment for September, U.K. house price data from Halifax, German industrial output for August, French current account and trade balance figures for August and Italian retail sales for the same month.
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— CNBC's Tanaya Macheel contributed to this market report.
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