Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European Stocks Higher; Rebounding After Powell-Induced Selloff

Stock MarketsDec 01, 2021 03:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets traded higher Wednesday, rebounding after Federal Reserve chairman Jerome Powell guaranteed a rough end to November with his hawkish turn in Congress on Tuesday.

Powell signalled on Tuesday the U.S. central bank may speed up the pace of its bond-buying taper at its meeting later this month, acknowledging that inflation is proving to be more sustained and troublesome than he had expected.

At 3:40 AM ET (0840 GMT), the DAX in Germany traded 0.7% higher, the CAC 40 in France also rose 0.6% and the U.K.’s FTSE 100 climbed 1%. 

The positive start to December comes after global stock markets had ended the previous month with sharp losses as fears about the impact of the new coronavirus variant triggered a broad sell-off.

Helping the tone Wednesday were comments from Israeli Health Minister Nitzan Horowitz, who stated that early data showed that those who have three doses of the Pfizer (NYSE:PFE) Covid vaccine are well protected against the new omicron variant. 

Travel and leisure stocks were well bid, with Wizz Air (LON:WIZZ) stock, IAG (LON:ICAG) stock and EasyJet (LON:EZJ) stock all rising over 4% and hotel operators Melia (MC:MEL) and Accor (PA:ACCP) gaining over 3% each.

That said, the surge in Covid cases remains a potential stumbling block for the region's recovery. Earlier Wednesday, the head of the Germany’s DIVI intensive-care medicine lobby said Europe's largest economy urgently needs stricter measures to check a surge in infections and protect hospitals from a “particularly dangerous situation.”

Turning to economic data, China's factory activity fell back into contraction in November, according to a business survey, with the Caixin/Markit Manufacturing Purchasing Managers' Index dropping to 49.9 in November from 50.6 the month before.

The equivalent data is also due from the Eurozone later Wednesday, while German retail sales fell 2.9% on the year in October, a sharp retreat from the revised -0.6% figure seen the month before. ING analyst Carsten Brzeski said he expects private consumption in Europe's largest economy to be a drag on growth in the fourth quarter, with an eye on soaring energy bills and renewed mobility restrictions.

Crude prices traded higher Wednesday, recouping some of the hefty losses of the previous session, ahead of a key meeting of top producers to decide future output levels. 

The Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+, gets together on Thursday. Expectations are growing that the members will agree to pause plans to add 400,000 barrels per day of supply in January given the potential hit to demand from the travel restrictions put in place to tackle the new omicron variant.

The American Petroleum Institute reported a fall of 747,000 barrels from U.S. crude inventories for last week, a smaller draw than expected, and investors now await crude oil supply from the U.S. Energy Information Administration at 10:30 AM ET.

By 3:40 AM ET, U.S. Crude futures traded 4% higher at $68.81 a barrel, having slumped 5.4% on Tuesday, while the Brent contract rose 4.3% to $72.19, after falling 3.9% during the previous session.

Additionally, gold futures rose 0.2% to $1,780.05/oz, while EUR/USD traded 0.3% lower at 1.1305.


European Stocks Higher; Rebounding After Powell-Induced Selloff

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Ezel Mete
Ezel Mete Dec 01, 2021 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell signaling tapering sooner, which means interest rates will be increased sooner and stocks go back up to where they were. what a joke. Nasdaq to 12k and spx to 3000
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email