European markets, stocks, data, news and earnings

Swedish real estate company SBB its shares rose 13% by late afternoon, paring gains from earlier gains after it presented its pro forma earnings capacity for 2023 following the sale of shares in education unit EduCo.

At the bottom of the index, a German manufacturer of kitchen appliances Rationally fell by 8%.

— Elliott Smith

Ben Jones, director of macro research at Invesco, says Europe, however, has “much more bad news with a price”.

Per Roman, co-founder and managing partner of GP Bullhound, discusses the outlook for the tech sector and says “the high degree of political risk is a real wake-up call for the tech industry.”

S&P Global’s final composite PMI (purchasing managers’ index) for the euro zone rose to 47.8 in November from a 21-month low of 47.3 in October, remaining below the 50 points separating expansion from contraction.

“A fifth consecutive monthly decline signaled by the PMI increases the likelihood that the eurozone will slide into recession,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

However, the reduction in the rate of contraction means the region is likely to see GDP contract by just 0.2%, Williamson predicted.

– Elliott Smith

The UK services sector shrank for a second straight month in November as the country’s cost-of-living crisis continued to squeeze demand, S&P Global’s services PMI (purchasing managers’ index) said on Monday.

The services PMI remained at 48.2, matching a 21-month low in October and remaining below the 50 mark that separates expansion from contraction.

Chris Williamson, chief business economist at S&P Global, said PMIs showed a growing risk of a UK recession

“The change in government and its new economic policies may have helped stem the volatility in financial markets since September’s ‘mini-budget’, but the economic picture remains stubbornly unchanged,” Williamson said.

“The overall rate of economic contraction remained steady compared to October, indicating a drop in GDP at a quarterly rate of 0.4%.” As such, this is the most difficult period the UK economy has faced since the global financial crisis, barring only the peak of a pandemic.”

– Elliott Smith

Shares of grifols climbed more than 6% in early trade to lead the Stoxx 600 after Morgan Stanley upgraded shares of the Spanish pharmaceutical company to “overweight” from “equal weight.”

At the bottom of the index, a German manufacturer of kitchen appliances Rationally fell by more than 5%.

– Elliott Smith

Vodafone said on Monday its CEO Nick Reed will step down at the end of the year, with Chief Financial Officer Margherita Della Valle serving as an interim replacement.

During Reid’s tenure, the British telecoms firm sold assets to focus on Europe and Africa and spin off its tower infrastructure unit, but he failed to create the share price revival that investors demanded.

Shares of Vodafone were up 1.8% shortly after the market opened.

Read more.

— Jenny Reid

Hong Kong-listed Chinese technology, consumer and travel-related firms saw sharp gains in early trading after some cities in China saw some easing of Covid restrictions.

Technological heavyweight Tencent gained 5.5% and Meituan rose 3.5%, while Ali Baba jumped 4.72% and Xiaomi added 7.31%. EV shares such as Li Auto jumped 9.19% and Nio rose 11.5%.

Meanwhile, Hong Kong-listed casino shares also jumped, with MGM China increased by 12.44%, Win Macau climbing 12.35% and Sands China adding 7.5%. Galaxy Entertainment increased by 3.61% and SJM Holdings increased by 4.82%.

Hotpot Restaurant Operator Haidilao jumped 15%, and airline stocks also jumped. China Southern Airlines and China Eastern Airlines each rose more than 5%, while Air China earned 4%.

The broader Hang Seng Index rose 3.21%.

— Abigail Ng, Jihe Lee

Goldman Sachs sees an “uptrend” opportunity in electric vehicles.

That trend will accelerate as electric cars become “increasingly technological” and easier to build, Goldman analysts said in a Dec. 1 report.

That is expected to benefit one global stock, Goldman said, giving the stock as much as 90% upside in its bull case for the firm.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets are headed for a flat open on Monday as investors await more regional data.

The UK FTSE is expected to open 4 points lower at 7,554, Germany’s DAX is expected to rise 2 points to 14,531, France’s CAC is expected to drop 2 points to 6,740 and Italy’s FTSE MIB is expected to be lower up 14 points to 24,671, according to IG data.

The data release includes retail sales in the euro area for October, as well as final purchasing managers’ index data for November. No big wins.

— Holly Elite