U.S. stocks rebounded at the start of trade Wednesday as investors shook off weak data from a day ago and focused on signs of easing tensions in Hong Kong, new stimulus measures out of China and growing hopes that the U.K. could avoid a disorderly exit from the European Union.
Also boosting optimism toward the greater Chinese economy were state-media reports, cited by Reuters, that the People’s Bank of China will soon implement cuts in the reserve requirement ratio for Chinese banks, in a move that analysts predict will boost growth and signals willingness by the government to take steps necessary to combat the effects of higher U.S. tariffs on Chinese imports.
Still, the 328 to 301 vote on Tuesday, clears the way for Johnson’s opposition to introduce a bill later Wednesday to prevent Britain from leaving the EU without a deal Oct. 31. Investors have been wrestling with concerns that the domestic economy might slip into recession amid the U.S. and China tariff conflict, which has disrupted supply chains and helped to slowdown global economies.
Which stocks are in focus? Shares of coffee-chain Starbucks Corp. SBUX, -3.55% were down 3.3% after the company cut its forecast for earnings-per-share growth in fiscal 2020, citing a “pull forward” of expected share repurchases into 2019.