Porsche shares rise in Frankfurt market debut
Porsche shares increased almost 2% above its IPO price in its stock market debut on Thursday, in what’s being billed as one of Europe’s biggest ever public offerings.
Shares in the luxury carmaker initially traded at 84 euros ($81) at the start of the day.
Shares had been priced at the top end of their range late Wednesday, putting the company value up to 75 billion euros.
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— Hannah Ward-Glenton
Stocks on the move: Rational up 12%, Barratt Developments down 9%
CNBC Pro: Analyst says this FAANG stock is an evergreen winner — and investors should buy the dip
Tech stocks have had a difficult year so far but a Rosenblatt Securities analyst thinks the sell-off is an opportunity for long-term investors to buy the dip.
“Stay away from the losers,” he said, recommending “winners in the various secular battles and evolutionary battles” in tech.
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— Zavier Ong
Stocks may continue this ‘oversold bounce’ over the next few days, Wells Fargo’s Harvey says
Wells Fargo’s Chris Harvey expects stocks to continue their upward move.
“The spike in short interest, retail selling skew, and BOE’s action all suggest stocks will continue their oversold bounce for the next few days,” he said in a note to clients Wednesday.
Stocks hit fresh lows earlier in the week, with the S&P 500 notching a new bear market. The sell-off was triggered by the Fed’s latest rate decision last week, which some investors believe steered the market into oversold conditions.
As the cost of capital rises and prices hover near record highs, the consensus is increasingly coming to believe that a Fed-induced recession is unavoidable, Harvey said.
“We look at a recession like a car crash,” he wrote. “You never know how bad it will be, but there is almost no ‘better-than-expected’ outcome — so policymakers need to be careful what they wish for.”
— Samantha Subin
10-year Treasury yield drops the most since 2020
The yield on the benchmark 10-year Treasury note dropped the most since 2020 on Wednesday, despite briefly topping 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 dropped 23 basis points to 3.733%, or the most it’s dropped since 2020.
It hit a high of about 4.019%, a key level that was the highest since October 2008, earlier in the day before erasing those gains.
Yields 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 U.S. inflation data.
The U.K.’s FTSE index is expected to open 47 points lower at 7,341, Germany’s DAX 86 points lower at 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB 132 points lower at 22,010, according to data from IG.
Global markets have pulled back following a higher-than-expected U.S. consumer price index report for August which showed prices rose by 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying economist expectations that headline inflation would fall 0.1% month-on-month.
Core CPI, which excludes volatile food and energy costs, climbed 0.6% from July and 6.3% from August 2021.
U.K. inflation figures for August are due and euro zone industrial production for July will be published.
— Holly Ellyatt