European markets head for postitive start to the trading day following global gains

Holly Ellyatt

European markets are heading for a positive start to the trading day on Thursday, following modest gains in the U.S. yesterday and Asia-Pacific markets overnight.

European markets closed lower on Wednesday as investors reacted to the latest inflation data out of the U.S. while Wall Street saw modest gains following a massive sell-off for U.S. stocks on Tuesday.

On Thursday, investors will be looking out for French inflation data for August. The Bank of England was due to have a monetary policy meeting but has delayed this until next week due to the death of Queen Elizabeth II.

U.S. equity futures were slightly higher Wednesday evening while shares in the Asia-Pacific mildly roseon Thursday after a negative session Wednesday.

CNBC Pro: Want higher returns? Kevin O’Leary says put your money in ‘harm’s way’ — and shares his stock picks

Billionaire investor Kevin O’Leary believes market volatility is back, and thinks investors will have to take on some risks to get higher returns.

“If you want to get a 6% to 8% return, you’re going to have to put some money in harm’s way,” he told CNBC “Street Signs Asia” on Wednesday.

He names the stocks and sectors he likes to navigate the current volatility.

— Zavier Ong

U.S. 2-year Treasury yields hits 3.8% again

The U.S. 2-year Treasury note briefly rose to 3.8% again after reaching its highest level since November 2007 earlier this week.

Short-term bond yields, which are most sensitive to Fed policy, soared following the U.S. inflation report on Tuesday.

The yield on the benchmark 10-year Treasury was also at 3.41% and the yield on the 30-year Treasury bond was at 3.46%.

Yields move inversely to prices, and a basis point is equal to 0.01%.

–Jihye Lee

CNBC Pro: Morgan Stanley says the S&P 500 is set for a comeback by year-end. These are its top stock picks

U.S. markets had a meltdown on Tuesday — the worst since June 2020 — following yet another hot inflation report. But that may not last for long, according to Andrew Slimmon of Morgan Stanley Investment Management, who says the S&P 500 could enjoy upside by year-end.

He predicts the level that the S&P 500 will rise to by the year end, and also picks stocks to buy into the “fear.”

— Weizhen Tan

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

Source : CNBC