Frank Walbaum
European equities opened higher on Wednesday, reversing some of the sharp losses from the previous session as long-dated bond yields showed tentative signs of stabilization. After Tuesday’s steep selloff driven by fiscal concerns and rate repricing, the calmer tone in core bond markets offered a reprieve for risky assets.
The DAX recovered to a certain extent after falling to a multi-week low, with gains led by consumer discretionary and select industrial names. Adidas climbed following a rating upgrade that highlighted enhanced revenue diversification and accelerating growth beyond its traditional footwear segment, supporting the market.
At the same time, investors’ attention remains directed toward the upcoming US JOLTs data and a series of US central bankers’ speeches, which could shape expectations for September’s policy decisions in the US. Although markets have stabilized since Tuesday’s selloff, European stocks could remain exposed to more price corrections and volatility as investors react to new data.
Walbaum is Market Analyst at Naga
