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European stocks look set to rebound on Tuesday after analysts said the global market selloff due to the carry trade unwind is overdone.<\/p>\n
U.S. stock futures bounced back after a three-day rout on fears of a possible U.S. recession and extreme valuations in the technology<\/span> sector. <\/p>\n “A recession is unlikely in the U.S. unless it is proceeded by a financial crisis that causes an economy<\/span>-wide recession,” Ed Yardeni of Yardeni Research wrote in a report.<\/p>\n “One print alone is not enough to shift the narrative on growth fears,” JPMorgan Chase & Co.’s Andrew Tyler wrote in a note to clients.<\/p>\n Encouraging U.S. service sector activity data released on Monday also helped eased concerns of an abrupt downturn. <\/p>\n In Asia, Japan’s Nikkei average jumped more than 7 percent as the yen weakened after a five-day surge against the U.S. dollar.<\/p>\n Other Asian markets<\/span> also staged a significant rebound following their worst single day drop since 2008, driven by a wave of bargain hunting.<\/p>\n Gold was marginally lower but held above $2,400 per ounce. Oil prices jumped more than 1 percent in Asian trade on fears that a spreading Middle East conflict could hit supplies. <\/p>\n Israel and the U.S. are bracing for significant escalation after Iran and its regional allies vowed retaliation for the deaths of Hamas and Hezbollah leaders.<\/p>\n In economic releases, German industrial orders data for June and Eurozone retail sales figures may garner investor attention later in the day. <\/p>\n Overnight, U.S. stocks ended with deep losses as recession worries and a widespread shift in sentiment around the technology sector overshadowed data showing a rebound in the U.S. services sector activity from a four-year low in July.<\/p>\n The tech-heavy Nasdaq Composite plunged 3.4 percent and the S&P 500 plummeted 3 percent to hit three-month lows while the Dow slumped 2.6 percent. <\/p>\n European stocks hit a six-month low on Monday, with fears over slowing U.S. growth, some weak eurozone economic data and heightened Middle East tensions weighing on markets. <\/p>\n The pan European STOXX 600 fell 2.2 percent. The German DAX dipped 1.8 percent, France’s CAC 40 shed 1.4 percent and the U.K.’s FTSE 100 tumbled 2 percent. <\/p>\n<\/p>\n Market Analysis<\/p>\n<\/div>\n