European markets open to close, stock movements, news and data

German wholesale inflation in October was well below expectations

Germany’s producer price index came in at -4.2 percent month-on-month in October, the federal statistics office said on Monday, well below the Reuters consensus forecast for a 0.9 percent increase.

On an annual basis, wholesale prices rose by 34.5%, below expectations for growth of 41.5%.

– Elliott Smith

Stocks on the move: Virgin Money up 13%, IDS down 5%

Virgin Money shares jumped more than 13% to top the Stoxx 600 in early trade after the company reported a rise in pre-tax profit for fiscal 2022 and announced a £50 million ($59.4 million) share buyback program .

At the bottom of the index, stocks International distribution services — trading as Royal Mail — fell 5% as the company faced fresh waves of damaging industrial action by workers over the festive season.

Oil prices fall as China faces Covid fears, Goldman Sachs cuts forecast

Oil prices fell by almost a dollar as China’s Covid fears grew and the nation saw first virus-related deaths recorded since May this year.

Brent Crude Oil Futures lost less than a dollar, or 0.9%, to $86.83 a barrel and American West Texas Intermediate futures fell 1.09% to $79.21 a barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 a barrel for the fourth quarter of 2022, citing reduced demand in China with rising Covid concerns and insufficient details from the Group’s latest Russian oil price cap of the 7 countries.

“We believe the market is right to be concerned about future fundamentals,” economists including Jeffrey Currie said in the note, adding that the potential for further lockdowns in China was equivalent to the last production cut by OPEC+.

— Lee Ying Shan

CNBC Pro: Strategist says Chinese tech stocks like Alibaba are ‘hugely undervalued’

This year’s 30% drop in the value of Chinese Big Tech stocks, such as Ali Babamade them “incredibly cheap,” according to investment bank China Renaissance.

Head of equities, Andrew Maynard, not only believes the stock market appears to have bottomed out, but also that investors could miss out on a rally if they remain short on China.

“Without a shadow of a doubt, underweight China will cost you in the future,” Maynard said.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Markets await more clues on Fed hikes and the economy next week

Investors may be a little more cautious next week, with stocks looking for direction in quiet trade and bond market warnings of a recession growing louder.

The Thanksgiving holiday on Thursday should mean markets are likely to be quiet on Wednesday and Friday. Retailers will monitor Black Friday holiday shopping reports for consumer feedback.

“This is really a week where data addiction is the key phrase,” said Julian Emanuel, senior managing director at Evercore ISI. “The Addiction [for stocks] is higher unless the data continues to deteriorate and the Federal Reserve remains on its hawkish slant … which has apparently strengthened over the past 48 hours.”

Check out our full deep dive on what to expect next week here.

— Patti Dom, Tanaya Machel

CNBC Pro: Morgan Stanley’s Mike Wilson predicts S&P 500 bottom, calls it a ‘great buying opportunity’

Morgan Stanley chief equity strategist Mike Wilson says we’re in the “final stages” of a bear market, but the situation will remain challenging for some time to come.

It predicts when — and at what level — the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening invitations

European markets are expected to open lower on Monday as investors continue to monitor the uncertain economic outlook.

The UK’s FTSE is expected to open 15 points lower at 7,386, Germany’s DAX down 54 points at 14,378, France’s CAC down 17 points at 6,629 and Italy’s FTSE MIB down 54 points at 24,445. according to IG data.

No big wins on Monday. The published data includes producer prices in Germany for October.

— Holly Elite

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