European markets open higher on Tuesday
European markets opened higher on Tuesday, with regional stocks and all sectors opening in the green.
At 8:11 a.m. London time, the pan-European Stoxx 600 index was last up 0.74%. Travel and leisure stocks led the gains, ending up 1.59%, with banks and technology stocks also rising. They were among the hardest-hit sectors in Monday’s stock market selloff.
Major regional indexes were also higher, with Britain’s FTSE 100 up 0.55%, France’s CAC 40 up 0.18% and Germany’s DAX up 0.58%.
——Sophie Kidlin
South Korea and Japan stock markets rebound sharply at opening
South Korean and Japanese stocks opened sharply higher on Tuesday morning, rebounding from Monday’s selloff.
Japan’s Nikkei 225 Index and Topix both soared 9% before giving up about 7% of their gains. this yen It weakened to around 146 against the US dollar.
Korean Cospi It rose more than 4%, while the Kosdaq rose about 5%.
— Christine Wang
BlackRock says stocks could recover as Wall Street fears of recession are exaggerated
BlackRock says stocks will find their footing again and recover from the sell-off in global markets as recession fears subside and the unwinding of yen carry trades resolves.
“We believe risk assets are likely to recover as recession fears ease and rapid unwinding of carry trades stabilizes,” the firm’s investment research wrote. “We continue to overweight on the back of AI giants U.S. stocks and believes the sell-off presents a buying opportunity.
“We believe economic growth will support risk assets and believe the market is pricing in too many rate cuts from the Fed,” the report added. The firm also believes the recent jobs report ahead of Friday’s market sell-off was weaker than expected and more like A hiring slowdown, not a recession.
BlackRock added that the main driver of the rise in unemployment was increased labor supply due to immigration rather than layoffs, a key difference compared with previous recessions.
— Brian Evans
BlackRock’s Reid says even if the Fed doesn’t cut rates this week, it should change the way it communicates
Rick Rieder, chief investment officer of global fixed income at BlackRock, said the Fed should step up and send a signal to the market that it is aware of the problems facing the economy even without an emergency rate cut.
Reid noted that traders are already pricing in the Fed’s aggressive moves and said the central bank should change its public communications to show it understands the labor market has softened and a rate cut is increasingly likely.
“Do they have to panic and have internal meetings? No, but I think … developing that communication would be helpful,” Reid said on “The Closing Bell.”
— Jesse Pond
Fed’s Daley expects rate cut to be imminent
San Francisco Fed President Mary Daly said on Monday that she would cut interest rates later this year, but she did not provide specifics.
“Policy adjustments will be necessary next quarter. How much needs to be done and when, I think that will depend a lot on the information that is received,” the central bank official told a forum in Hawaii.
Daley noted that she still believes the economy is growing despite a softening labor market and that reducing restrictive policies is appropriate.
“I see momentum in the economy and we want to make sure we keep that momentum going,” she said.
——Jeff Cox
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