Analysts expect the bounce so far this week to be short-lived as markets remain focused on interest rates and the risk of recessionLondon — European shares opened higher on Tuesday, recovering slightly from last week’s 17-month lows as the sell-off paused, but major central banks’ rate hike plans and global recession risks kept investors cautious.
Still, analysts expect the bounce to be short-lived. Timothy Graf, head of macro strategy for EMEA at State Street Global Markets, said the move higher was probably a result of markets being oversold in recent weeks and relief that event risks, such as the Bank of Japan and Swiss National Bank meetings, have passed.
Germany’s BDI industry association slashed its economic forecast for 2022 and said that a halt in Russian gas deliveries would make recession in the country inevitable.