European shares slide as BoE support fades; Stoxx 600 down 2%

Reuters reported that the Bank of England bought 1.415 billion pounds ($ 1.55 billion) of government bonds with maturities of more than 20 years.

It’s the second day of Bank’s bond purchase schemewhich was launched to stabilize market volatility after the government budget announcement witnessed a historic event rise in bond yields, which move inversely with prices. It bought 1.025 billion pounds of gold bonds on Wednesday.

The start of the program boosted gold prices, although they started to fall again after Prime Minister Liz Truss He said in a series of interviews It will stick to its policies.

The 10-year Treasury yield was trading at 4.121% at 3:20pm London time.

– Jenny Reed

reasonable Shares jumped more than 15% by mid-afternoon to top the Stoxx 600, after the German stove and oven maker raised its sales revenue and profit forecast for 2022.

At the bottom of the excellent European index, the British real estate developer Barat Developments It fell more than 12%.

– Elliot Smith

The effect of the shortage of semiconductors will continue Porsche Throughout 2023, according to Arno Antlitz, Volkswagen’s chief financial officer, but the show should improve the following year.

“We expect a better show in 2023, but we expect to ease the shortfall in 2024,” Antlitz told CNBC’s Annette Weisbach.

Comments came as Antlitz reflected on Porsche shares Make it stock market debut in Frankfurt.

– Hannah Ward Glinton

The European Commission’s economic confidence index, which compiles surveys of business and consumer confidence, fell to 93.7 in September from 97.3 in August, the lowest level since November 2020.

Confidence slumped across economic sectors amid a broad rise in inflation expectations, despite European Central BankHis commitment to raise interest rates in order to curb price hikes.

– Elliot Smith

Porsche Shares are nearly 2% above their IPO price on their stock market debut Thursday, in what is considered one of Europe’s largest public offerings ever.

Shares in the luxury automaker initially traded at 84 euros ($81) at the start of the day.

Shares were priced at the upper end of their range late Wednesday, valuing the company at €75 billion.

Read CNBC’s full coverage over here.

– Hannah Ward Glinton

reasonable Shares jumped more than 12% in early trading to top the Stoxx 600 after the German furnace and oven maker raised its sales revenue and profit forecast for 2022.

At the bottom of the excellent European index, the British real estate developer Barat Developments It fell more than 9%.

Technology stocks have had a tough year so far, but Rosenblatt Securities analyst believes the sell-off is an opportunity for long-term investors to buy the dip.

“Stay away from losers,” he said, recommending “winners in various secular and evolutionary battles” in technology.

Professional subscribers can read more.

– Xavier Ong

Chris Harvey of Wells Fargo expects stocks to continue their upward movement.

“The rise in short rates, retail skew, and Bank of England actions suggest that stocks will continue to bounce back oversold over the next few days,” he said in a note to clients on Wednesday.

Stocks hit new lows earlier in the week, with the S&P 500 reaching a new bear market. The selling was triggered by the Federal Reserve’s latest interest rate decision last week, which some investors believe drove the market into oversold conditions.

With the cost of capital rising and prices hovering near record levels, consensus is growing that a Fed-caused recession is inevitable, Harvey said.

“We look at the recession like a car accident,” 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 Sobin

Return on standard 10 years treasury The currency fell the most since 2020 on Wednesday, although it briefly gained 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 fell 23 basis points to 3.733%, its most since 2020.

It reached a high of around 4.019%, a key level that was the highest since October 2008, earlier today before erasing those gains.

Yields and prices move in opposite directions. One basis point equals 0.01%.

European shares are expected to open their doors in negative territory on Wednesday as investors react to the latest US inflation data.

The UK FTSE is expected to fall 47 points at 7341, the German DAX 86 is down at 13106, the French CAC 40 is down 28 points, and the Italian FTSE MIB is down 132 points at 22010, according to data from IG.

Global markets fell after a higher than expected US Consumer Price Index The Bureau of Labor Statistics reported Tuesday that an August report that showed prices rose 0.1% for the month and 8.3% annually in August, defying economists’ expectations that headline inflation will fall 0.1% on a monthly basis.

Core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK inflation figures are due for August, and Eurozone industrial production for July will be published.

– Holly Eliat