{"id":76876,"date":"2023-10-25T23:52:14","date_gmt":"2023-10-26T03:52:14","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/stocks-rebound-ahead-of-busy-week-but-can-recovery-hold\/"},"modified":"2023-10-25T23:52:20","modified_gmt":"2023-10-26T03:52:20","slug":"stocks-rebound-ahead-of-busy-week-but-can-recovery-hold","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=76876","title":{"rendered":"Stocks Rebound Ahead Of Busy Week, But Can Recovery Hold?"},"content":{"rendered":"
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By Fawad Razaqzada<\/em><\/p>\n

European indices and US futures were trading higher as yields dipped further lower after the US 10-year could not hold above the key 5% level for long on Monday.<\/p>\n

Echoing the \u201crisk-on\u201d sentiment, Bitcoin had extended its weekly advance to more than 15% at the time of writing, reaching above $35K for the first time since May 2022 with expectations being rife about an imminent approval of a Bitcoin ETF by the SEC.<\/span><\/p>\n

Investors were also looking forward to the release of earnings from Microsoft (MSFT) and Alphabet (GOOG) (GOOGL) today ahead of more tech earnings, key economic pointers, and the ECB\u2019s rate decision later in the week.<\/p>\n

PMIs Point To Recession In Eurozone<\/strong><\/h2>\n

Global PMI data has been consistently very poor throughout much of this year, correctly highlighting a challenging macro backdrop with stagflation and high-interest rates holding back the developed economies, most notably the Eurozone. Add the raised geopolitical risks to the equation, sentiment in the services sector was never going to improve materially.<\/span><\/p>\n

And so, it proved.<\/p>\n

The Eurozone services PMI fell 47.8 versus 48.7 previous and expected. The manufacturing PMI was down to 43.0 from 43.4 previously.<\/p>\n

On a country level, German services PMI fell sharply to 48.0 from 50.3 the month before, while the manufacturing PMI remained depressed at 40.7, albeit improving ever so slightly from 39.6. French PMIs remained well below the expansion threshold of 50.0.<\/p>\n

The PMI is a leading indicator of economic health, as purchasing managers possibly hold the most current and relevant insight into the company’s view of the economy.<\/p>\n

The fact that we have not seen any significant improvement in these PMIs argues against a big stock market recovery, but it does cement expectations that the ECB will hold rates unchanged.<\/p>\n

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Focus Turns to US Tech Earnings<\/strong><\/h2>\n

The US earnings calendar is getting busier, with more technology companies set to publish their results following the mixed numbers from the likes of Tesla (TSLA) and Netflix (NFLX) last week. This week, we have the following companies reporting their results:<\/p>\n