European Stocks Up Almost 4%.
London, Tuesday, 4 October 2022
The benchmark Stoxx 600 and the German DAX both increased 3.8% on Tuesday as European equity markets continued to rise. This was the longest winning streak since 2011.
Expectations that central banks would soon ease up on their tightening of monetary policy helped to fuel a widespread rally after three straight quarterly losses.
Bets on the US Federal Reserve adopting a more aggressive policy stance decreased as a result of weaker-than-expected manufacturing statistics in the US.
Additionally, contrary to predictions of a 0.50 bps increase, the Reserve Bank of Australia surprisingly raised rates by only 0.25 bps.
With banks up nearly 5% and travel & leisure up more than 6%, all STOXX sectors finished the day in the black. Concerns about the lender's capacity to restructure its business caused shares of Credit Suisse to drop more than 10% on Monday. However, the stock recovered 9% on Tuesday.
(Report by: The Decision Maker - Finance editors)