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Strong US and European corporate results helped stock markets initially rebound on Wednesday, but rising crude prices kept inflation concerns alive and trading choppy even as bond yields eased after having touched fresh multiyear highs.

An index of Europe’s 600 biggest stocks rose as much as 0.8% as robust earnings from luxury majors Burberry and Richemont countered pressure from rising yields.

“The market is still grappling with how do you adjust to higher rates and what are the companies that are impacted by higher rates?” said Jon Maier, chief investment officer at Global X ETFs. The rise above 0% for the bund — the euro zone’s benchmark– marks a turning point for regional debt, reflecting record-high inflation that is being exacerbated by supply chain disruption.

The market is making interest rate adjustments throughout the major industrialized economies, said Marc Chandler, chief market strategist at Bannockburn Global Forex.

 

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