While global markets rally, European markets are climbing; Stoxx 600 up 1.6%

While global markets rally, European markets are climbing;  Stoxx 600 up 1.6%
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Stocks in motion: Greggs, Accelleron up 5%

Shares of the British bakery chain Greggs Gained 5.6% in early trade after reporting quarterly sales gains despite deepening cost of living crisis and falling consumer confidence in the UK

acceleron Shares rose 5% as investors bought the stock at a discount after the previous one. ABB weak market start of the turbocharger unit on Monday.

CNBC Pro: Want a ‘defensive move’ with up to 5% returns? Buy this fund, says strategist

It’s been a volatile year for both stocks and bonds, with major Wall Street indices only March ends its worst month since 2020and Treasury yields remain high.

But “pockets of opportunity” still exist, says David Dietze, chief investment strategist at Point View Wealth Management.

“Short-term defensive measures are probably warranted,” Dietze told CNBC’s “Street Signs Asia” on Monday, choosing her favorite fund to play in the market right now.

For subscribers, you can read more here.

— Weizhen Tan

S&P Global says follow fourth-quarter earnings guide more than third-quarter real numbers

S&P Global believes that companies’ fourth-quarter earnings estimates when reporting their third-quarter results will be far more important to the future direction of the market than actual third-quarter figures.

“October brings earnings as Q3 forecasts have already dropped 7% and whisper numbers are slightly more than that,” senior index analyst Howard Silverblatt said over the weekend. It provides guidance for Q4 as consumer pullbacks continue inflation and Fed ‘adjustments’ will have a more significant impact (bigger concern for the third quarter, where consumers are still spending, than the actual figures).

S&P Global forecasts the S&P 500’s third-quarter earnings to grow by 6.1% year-over-year and approximately 18% over the second quarter of 2022, according to analysts.

Forecasts for next year call for a 14.3% earnings increase over 2022 and a corresponding forward P/E ratio of 15.0.

Silverblatt also looked at the typical performance of the S&P 500 in October. “Historically, index posts win 57.4% of the time, with an average gain of 4.18% for the up months, an average of 4.67% for the down months, and an overall average of 0.46%,” he wrote.

— Scott Schnipper

CNBC Pro: What’s next for stocks, according to Wall Street pros?

The end of September is behind us, reassuring many stock investors who had a rough month with all major US indices posting big losses.

What is the outlook for stocks as we enter the fourth quarter of the year, with a historically weak month well reflected in the rearview mirror?

CNBC Pro scanned the research to find out what Wall Street was thinking.

For subscribers read more here.

— Zavier Ong

European markets: Here are the opening calls

European stocks are poised for a higher open on Tuesday, based on gains seen in yesterday’s trading session.

According to data from IG, the UK’s FTSE index is expected to open at 6,934, up 30 points, Germany’s DAX at 12,324, up 126 points, France’s CAC 40 up 58 points to 5,850 and Italy’s FTSE MIB up 245 points to 21,043.

The expected high opening in Europe came after the recovery in Wall Street on Monday. There, stocks rallied to start the new month and quarter on a positive note as Treasury yields fell from levels not seen in roughly a decade. It was the best day for the Dow since June 24 and the S&P 500 was the best day since July 27.

Gains are coming in from Greggs on Tuesday and euro area producer prices data for August are released.

—Holly Elliott

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