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Stocks rose in early trading Tuesday as Wall Street attempts to rebound from Monday’s sharp sell-off that edged the broad U.S. market ever closer to its 2015 lows hit in late August.
After initially struggling to gain traction, stocks moved higher on news that consumer confidence rose in September despite increased market volatility. The Conference board’s consumer confidence index rose to 103.0 from 101.3 in August. Economists expected a drop to 97.
Six months after the dollar’s ascent faded, Wall Street is giving in.
For a second straight quarter, the greenback is set to trail strategists’ projections. Morgan Stanley, Bank of America Corp. and Citigroup Inc. are among banks that have lowered their dollar forecasts against the euro during the past two weeks. The median year-end estimate for Intercontinental Exchange Inc.’s U.S. Dollar Index, which tracks the currency against six major peers, has been cut to the lowest since March.
Wall Street was more than 1 percent lower on Tuesday afternoon amid a decline in commodity prices and continuing uncertainty about when the Federal Reserve will raise interest rates.
The selloff was broad-based. All 30 Dow components declined. All 10 major S&P sectors were lower, led by a 2.2 percent drop in the materials index and a 1.9 percent fall in technology stocks.
Copper prices hit a three-week low, while oil was down about 2 percent on persistent worries about demand, especially in China.
The Fed last week kept rates at near-zero levels, citing the turbulence in a tightly linked global economy, including slowing growth in China. But, Atlanta Fed President Dennis Lockhart said on Monday a rate hike later this year was still possible.
UniCredit (CRDI.MI), Italy’s biggest bank by assets, is planning to cut around 10,000 jobs, or 7 percent of its workforce, as it seeks to slash costs and boost profits, a source at the bank told Reuters on Monday.
The planned cuts will be concentrated in Italy, Germany and Austria, several sources said, adding that they include 2,700 layoffs in Italy that have already been announced.
A UniCredit spokesman declined comment beyond noting that the bank’s CEO Federico Ghizzoni had on Sept. 3 said there were no concrete numbers on potential lay-offs, after a report said it was considering eliminating 10,000 positions in coming years.
Ghizzoni is reworking a five-year strategic plan, unveiled only last year, that will aim to boost revenue and cut costs. The revised plan is expected to be announced in November.
“The plans are for 10,000 job cuts,” the bank’s insider said, speaking on condition of anonymity. “They will be mainly in Italy, Austria and Germany.”
UniCredit, which has 146,600 employees across 17 countries, is under pressure to boost its profits as low interest rates are expected to keep hurting its earnings in coming years.
Other banks, such as Britain’s Barclays (BARC.L), are also cutting thousands of jobs and selling assets, as lending margins are squeezed.