Reinforced by cooling house prices and disappointing earnings , it prompted suggestions that the U.S. central bank may rein in future rate hikes after November's meeting. "I think the market rally is a breathing space rally," Beat Wittmann, chairman of Switzerland's Porta Advisors, told CNBC's "Squawk Box Europe" Wednesday. Central banks "got it wrong" on inflation, hiking too late, and will now overshoot, he said. "You can expect that central banks, led by the Fed, followed by the [European Central Bank], Bank of England, Swiss National Bank, will continue to tighten and they will overtighten, that means two, three times more," he said. Central banks will only blink if there's a reason to do so, as the Bank of England did this month to prevent a collapse of pension funds , he said.

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