By Sara Sjolin, MarketWatch
Deutsche Bank rallies more than 10%
European stock markets rebounded from a two-year low on
Wednesday, as investors picked up stocks beaten down in a
seven-session selloff.
The Stoxx Europe 600 index jumped 2.2% to 316.25, after closing
at the lowest level since Oct. 2013 on Tuesday. That capped a
losing streak fueled by concerns about oil prices and slowing
global growth.
"Major European markets are trying to rally once again, but with
previous rebounds having lacked conviction, falling sharply after
early gains, sentiment remains fragile," said Rebecca O'Keeffe,
head of investment at stockbroker Interactive Investor, in a
note.
"Any early movement in markets is, however, just a precursor to
this afternoon's main event, billed as possibly the most important
debate of the year so far, as [Federal Reserve Chairwoman] Janet
Yellen makes her first official public statement since raising
rates in December," she added.
Germany's DAX 30 index climbed 2.3% to 9,081.33, while France's
CAC 40 index gained 2.1% to 4,081.37. The U.K.'s FTSE 100 index
rose 1% to 5,691.60
(http://www.marketwatch.com/story/uk-stocks-wobble-after-sinking-to-three-year-low-2016-02-10).
Later in the day, attention turns to U.S. Federal Reserve
Chairwoman Janet Yellen as she testifies before the House Financial
Services Committee at 10 a.m. Eastern Time, or 3 p.m. London time.
Read: Five questions Janet Yellen must answer
(http://www.marketwatch.com/story/five-questions-janet-yellen-must-answer-2016-02-09)
Banking relief: Banks, which were sold off heavily in previous
sessions, led the charge higher in Wednesday's trade, with the
Stoxx Europe 600 Banks Index rallying 5.4%.
Shares of Deutsche Bank AG (DBK.XE) (DBK.XE) jumped 13% on news
the German bank is considering buying back
(http://www.marketwatch.com/story/deutsche-bank-shares-rally-on-debt-buyback-report-2016-02-10)
billions of euros of its own bonds.
Among other banking shares, Eurobank Ergasias SA (EUROB.AT)
climbed 7.9%, UniCredit SpA (UCG.MI) rose 11%, Commerzbank AG
(CBK.XE) added 8.8%, and UBS Group AG (UBS) gained 6.7%.
Oil rebound: Prices for both crude oil and Brent rose more than
1.5%
(http://www.marketwatch.com/story/oil-hovers-above-28-a-barrel-as-market-braces-for-more-supply-data-2016-02-10).
On Tuesday, they posted sharp losses on the back of a warning the
supply glut could get even worse
(http://www.marketwatch.com/story/iea-warns-oil-surplus-will-be-worse-than-expected-2016-02-09).
Read: Cheap oil may trigger a new era of OPEC dominance, warns
IEA
(http://www.marketwatch.com/story/cheap-oil-for-longer-may-trigger-a-new-era-of-opec-dominance-warns-iea-2016-02-09)
However, the rebound in oil prices wasn't enough to turn the
sentiment on energy-related stocks, leaving most of them trading in
negative territory. Shares of Tullow Oil PLC (TLW.LN) dropped 9.3%
after a financial update
(http://www.marketwatch.com/story/tullow-loss-narrows-for-2015-on-lower-write-offs-2016-02-10),
while Seadrill Ltd. (SDRL.OS) (SDRL.OS) fell 4.6% and Technip SA
(TEC.FR) lost 1.3%.
Other movers: Shares of A.P. Moeller-Maersk AS (MAERSK-B.KO)
slumped 4.1% after the world's largest container operator swung to
a loss in the fourth quarter
(http://www.marketwatch.com/story/moller-maersk-earnings-hit-by-oil-freight-slumps-2016-02-10).
Hikma Pharmaceuticals PLC (HIK.LN) sank 12% after the company
said it has lowered the bid price
(http://www.marketwatch.com/story/hikma-revises-terms-for-roxane-bid-lowers-price-2016-02-10)
for its previously announced acquisition of Roxane Laboratories
Inc. and Boehringer Ingelheim Roxane Inc. after getting new
information on Roxane's financial performance in 2015.
Smurfit Kappa Group PLC (SK3.DB) surged 15% after the packaging
company released fourth-quarter results
(http://www.marketwatch.com/story/smurfit-kappa-2015-profit-rises-cfo-to-step-down-2016-02-10).
Economic data: French industrial production fell 1.6%
(http://www.marketwatch.com/story/frances-industrial-production-falls-16-on-month-2016-02-10)
in December compared with the previous month, missing expectations
for a 0.2% increase. In Germany, business sentiment has reached a
record high
(http://www.marketwatch.com/story/german-businesses-more-optimistic-than-ever-dihk-2016-02-10),
according to a German Chambers of Commerce survey published
Wednesday.
U.K. industrial production for December missed estimates,
falling 1.1%
(http://www.marketwatch.com/story/uk-industrial-production-surprises-with-11-dip-2016-02-10)
on the month.
You're invited to Investing Insights: A global markets survival
guide
If you'll be in London on Tuesday, Feb. 23, you're invited to
join us for an evening of cocktails and conversation on the topics
of shifting monetary policy, growth, currencies, and the outlook
for investing opportunities and risks in European and global
markets.
Our panelists for the evening will include MarketWatch Personal
Finance and Investing Columnist Robert Powell; and Mark Hulbert,
Editor of the Hulbert Financial Digest.
The event is free and open to the public, but reservations are
required. For more information or to RSVP for the event, please
email (MarketWatchevent@wsj.com)
(END) Dow Jones Newswires
February 10, 2016 07:24 ET (12:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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