Stock markets rebounded across Europe at the open today as indexes steadied after snapping two weeks of gains on Friday.
The fall at the end of last week came as traders assessed the pace of interest rate hikes aimed at cooling soaring inflation.
There had been a slight rebound in markets in July from the massive sell-off in the first half of the year, mainly in response to the pace of interest rate hikes globally.
However, one analyst cautioned against reading too much into the July rebound.
Aidan Donnelly, Head of Equities with Davy said there had been a sea-change in attitudes among investors but it was coming on the back of market sentiment that had turned very poor.
"It wasn't a question of glass half-empty or glass half-full. The glass was broken," he said.
"Investors are less bearish rather than being bullish about the outlook for next year. There's still a huge amount of uncertainty," he warned.
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Mr Donnelly said earnings for the second quarter were encouraging with improved numbers over the season.
However, he cautioned that energy companies had been having an outsized impact on the overall numbers.
"The forecast for next year is for earnings to grow in mid-single digits," he said.