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Europe markets open to close

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LONDON — European markets were higher in morning trade, as investors assessed China’s reopening and awaited key European inflation figures.

The U.K.’s FTSE 100 rose 2.1%, while Germany’s DAX index was up 1.4% and France’s CAC 40 was up 1.2%.

Overall, the pan-European Stoxx 600 gained 1.6%, led by travel stocks, up 2.7%.

German preliminary inflation figures for December are due Tuesday afternoon, and are expected to show a fall on the previous month.

They will be followed by inflation figures from France on Wednesday, Italy on Thursday, and a flash estimate for the whole euro area on Friday.

U.K. markets were closed Monday, but shares across the rest of the continent rose as euro zone manufacturing data indicated that the worst may have passed for the 20-member currency bloc.

The figures offered hope of a light at the end of the tunnel, after a year beset by recession fears as central banks around the world hiked interest rates aggressively to rein in soaring inflation.

Meanwhile, markets in Asia-Pacific were mixed overnight as investors weighed the short-term implications of the rise in coronavirus infections in China against the potential longer-term boost from the full reopening of the world’s second-largest economy.

The Caixin purchasing managers’ index showed further declines in factory activity on surging Covid infections, but the survey also put business confidence around the 12-month outlook for output at its highest level since February 2022.

Global investors will also be watching for minutes from the Fed’s December policy meeting, due to be published Wednesday.

The central bank hiked rates by 50 basis points in December following four consecutive 75 basis point increases, and markets will be keen to gauge the likely trajectory of monetary policy in 2023.

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European markets open to close; data, news and earnings

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LONDON — European stocks moved higher on Tuesday as positive sentiment continues in the final trading days of 2022.

Germany’s DAX climbed by around 0.8% in early trade, while France’s CAC 40 was up around 0.9% and Italy’s FTSE MIB around 0.7%. The U.K.’s FTSE index is closed Tuesday for a public holiday.

Sector-wise, autos and chemicals both added 1.6% to lead gains as most sectors traded in positive territory.

Stocks in Europe received a boost from their counterparts in Asia-Pacific after China officially announced overnight that it will end quarantine for inbound travelers on Jan. 8 — symbolizing an end to the zero-Covid policy that it has held for nearly three years. Health officials are slated to hold a press briefing on Covid at 3 p.m. Beijing time.

The Shanghai Composite rose 1% and the Shenzhen Component gained 0.9% on the news while markets in Hong Kong, Australia and New Zealand were closed for the Christmas holiday.

Stateside, U.S. stock futures rose on Tuesday morning as investors looked to see whether a Santa Claus rally will appear before year-end.

Friday marked the start of the time period for a Santa Claus rally, which is typically considered the final five-day trading stretch in the current year, as well as the first two trading days in the new year. Markets were closed Monday for the Christmas holiday.

There are no major earnings or data releases in Europe on Tuesday.

— CNBC’s Sarah Min and Jihye Lee contributed to this market report.

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European markets, stocks, data, news and earnings

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Stocks on the move: SBB up 8%, Rational down 7%

Swedish real estate company SBB saw its shares rise 8% by mid-afternoon to lead the Stoxx 600 after presenting its pro forma earning capacity for 2023 following the divestment of shares of education unit EduCo.

At the bottom of the index, German kitchen appliance manufacturer Rational fell 7%.

– Elliot Smith

It’s ‘quite bold’ to suggest there’s not going to be some bad news in 2023 for earnings in U.S.: Analyst

Ben Jones, director of macro research at Invesco, says Europe, however, has “a lot more bad news priced in there.”

There’s ‘a lot of upside’ for tech, investment firm says

Per Roman, co-founder and managing partner of GP Bullhound, discusses the outlook for the tech sector and says “the height of political risk is a real awakening for the technology industry.”

Euro zone economy likely heading for mild recession, S&P Global says

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

“A fifth consecutive monthly falling output signalled by the PMI adds to the likelihood that the euro zone is sliding into recession,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

However, an easing in the rate of contraction means the region will likely only see GDP contract by 0.2%, Williamson projected.

– Elliot Smith

UK economy facing ‘toughest spell’ since financial crisis, S&P Global says

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

The services sector PMI remained at 48.2, equaling October’s 21-month low and remaining below the 50 mark separating expansion from contraction.

Chris Williamson, chief business economist at S&P Global, said the PMIs indicate a growing recession risk in the U.K.

“A change of government and its new economic policies may have helped arrested some of the financial market volatility after September’s ‘mini-budget’ but the economic picture remains stubbornly unchanged,” Williamson said.

“The overall rate of economic contraction has held steady compared to October, indicative of GDP falling at a quarterly rate of 0.4%. As such, this is the toughest spell the U.K. economy has faced since the global financial crisis excluding only the height of the pandemic.”

– Elliot Smith

Stocks on the move: Grifols up 6%, Rational down 5%

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

At the bottom of the index, German kitchen appliance manufacturer Rational fell more than 5%.

– Elliot Smith

Vodafone CEO steps down

Vodafone said on Monday its Chief Executive Nick Read would step down at the end of the year, with Chief Financial Officer Margherita Della Valle serving as interim replacement.

Read’s tenure has seen the British telecoms firm sell assets to focus on Europe and Africa and spin out its towers infrastructure unit, but he has failed to engineer the share price revival demanded by investors.

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

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— Jenni Reid

Hong Kong movers: Chinese tech firms and reopening stocks jump

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

Tech heavyweights Tencent gained 5.5% and Meituan rose 3.5%, while Alibaba jumped 4.72% and Xiaomi added 7.31%. EV stocks such as Li Auto jumped 9.19% and Nio climbed 11.5%.

Meanwhile, Hong Kong-listed casino stocks also jumped, with MGM China rising 12.44%, Wynn Macau climbing 12.35% and Sands China adding 7.5%. Galaxy Entertainment rose 3.61% and SJM Holdings rose 4.82%.

Hotpot restaurant operator Haidilao soared 15%, and shares of airlines also popped. China Southern Airlines and China Eastern Airlines each rose more than 5%, while Air China gained 4%.

The broader Hang Seng index was up 3.21%.

— Abigail Ng, Jihye Lee

Oil futures up 2% after OPEC+ holds steady and China reportedly eases some Covid restrictions

CNBC Pro: Goldman Sachs upgrades this global tech giant, saying the stock could rise up to 90%

Goldman Sachs sees one opportunity in electric vehicles that’s on an “upward trend.”

This trend will gain pace as EVs become “ever more technology driven” and simpler to build, said Goldman analysts in a Dec. 1 report.

That’s set to benefit one global stock, said Goldman, which gives the stock up to 90% upside in its bull case for the firm.

CNBC’s Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets are heading for a flat open on Monday as investors look ahead to more regional data.

The U.K.’s FTSE index is expected to open 4 points lower at 7,554, Germany’s DAX up 2 points at 14,531, France’s CAC down 2 points at 6,740 and Italy’s FTSE MIB down 14 points at 24,671, according to data from IG.

Data releases include euro zone retail sales for October as well as final purchasing managers’ index data for November. There are no major earnings.

— Holly Ellyatt

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Business

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

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Stocks on the move: Virgin Money up 14%, Ocado down 7%

Virgin Money shares jumped more than 13% to lead the Stoxx 600 by mid-afternoon after the company reported a rise in pretax profit for the 2022 fiscal year and announced a £50 million ($59.4 million) share buyback program.

At the bottom of the European blue chip index, British online grocer Ocado fell more than 7%.

– Elliot Smith

FTX is ‘not idiosyncratic,’ investment advisory firm says

Paul Gambles of MBMG Group says there are more shock waves to come for the cryptocurrency industry and warns that liquidity is drying up.

Excess liquidity in the tech sector must be removed, investment management firm says

Dan Scott of Vontobel Asset Management discusses layoffs in the tech sector.

German October wholesale inflation well below expectations

Germany’s Producer Price Index came in at -4.2% month-on-month in October, the federal statistics office said Monday, well below a Reuters consensus forecast for a 0.9% increase.

On an annual basis, wholesale prices were up 34.5%, below expectations of a 41.5% incline.

– Elliot Smith

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

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

At the bottom of the index, shares International Distributions Services — trading as Royal Mail — fell 5% as the company faces further waves of damaging industrial action from workers over the holiday season.

Oil prices drop as China faces Covid concerns, Goldman Sachs cuts forecast

Oil prices fell by nearly a dollar as Covid concerns in China rose with the nation seeing the first virus-related deaths recorded since May this year.

Brent crude futures shed less than a dollar, or 0.9%, to stand at $86.83 per barrel and U.S. West Texas Intermediate futures dropped 1.09% to $79.21 per barrel.

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

“We believe the market has a right to be anxious about forward fundamentals,” economists including Jeffrey Currie said in the note, adding the potential of further lockdowns in China is equivalent to the latest production cut by OPEC+.

— Lee Ying Shan

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

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

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

“Without a shadow of a doubt, being underweight China is going to cost you going forward,” Maynard said.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Markets are watching for more clues on Fed hikes and the economy in the week ahead

Investors may be a bit more cautious in the week ahead, with stocks seeking direction in quiet trading and the bond market’s warnings about recession getting louder.

The Thanksgiving holiday on Thursday should mean markets will likely be quiet Wednesday and Friday. Traders will be monitoring reports on Black Friday holiday shopping for feedback on the consumer.

“It’s really a week where data dependence is the key phrase,” said Julian Emanuel, senior managing director at Evercore ISI. “The bias [for stocks] is higher unless data continues to deteriorate and the Fed stays on its hawkish slant… which has clearly been reinforced in the last 48 hours.”

Check out our full deep dive on what to expect in the week ahead here.

— Patti Domm, Tanaya Macheel

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

Morgan Stanley’s Chief U.S. Equity Strategist Mike Wilson says we’re in the “final stages” of the bear market, but the situation will remain challenging for a while longer.

He 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 calls

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

The U.K.’s FTSE index 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 data from IG.

There are no major earnings Monday. Data releases include German producer prices for October.

— Holly Ellyatt

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U.S. inflation data, China Covid measures

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European stocks were cautiously higher on Friday as global markets remained buoyant after softer-than-expected U.S. consumer price index reading signaled that inflation may have peaked.

The pan-European Stoxx 600 was up 0.2% by late morning, having pared earlier gains of around 0.7%. Financial services added 2.2% while health care stocks fell 1.7%.

The European blue chip index closed 2.8% higher on Thursday after the release of the U.S. consumer price index , which sent major averages stateside to their biggest one-day rallies since 2020.

Markets are hoping the data could encourage the U.S. Federal Reserve to ease its aggressive monetary policy tightening.

U.S. stock futures rose early on Friday, pointing to further gains on Wall Street, with investors also keeping an eye on outstanding results from the U.S. midterm elections.

Investor optimism was boosted on Friday after China said it would ease some Covid measures, which sent Hong Kong’s Hang Seng index soaring more than 7% overnight.

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European markets lower as UK political chaos continues

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Sterling falls further as UK PM contest begins

UK public sector borrowing soars to £20 billion

Public sector borrowing reached £20 billion ($22.2 billion) in the U.K. in September, up from £11.8 billion in August, according to the Office for National Statistics.

It is the second highest September borrowing figure since monthly records began in 1993.

The figure is £5.2 billion more than the £14.8 billion originally forecast by the ONS.

— Hannah Ward-Glenton

Retail leads losses as UK reports lower sales figures

Retail leads losses in the European markets this morning, down 2.9%.

Britain’s retail sales figures were lower than expected, down 1.4% in September according to the Office for National Statistics.

The figure is 1.3% below pre-Covid levels in February 2020.

Retailers continue to cite rising prices and the cost-of-living crisis for hampering sales. The death of Queen Elizabeth II in September also caused many retailers to close.

— Hannah Ward-Glenton

Adidas shares down 7.2% after profit warning

Shares of Adidas have dropped 7.2% in early trade after the company issued a 2022 profit warning.

Puma is also trading around 4% lower following the Adidas announcement.

— Hannah Ward-Glenton

European markets: Here are the opening calls

The U.K.’s FTSE 100 is set to open 36 points lower at 6,905, according to data from IG.

Germany’s DAX is seen opening around 119 points lower at 12,636, France’s CAC is set to drop by 51 points to 6,026 and Italy’s MIB index is expected to fall around 205 points at 21,398.

— Hannah Ward-Glenton

CNBC Pro: Goldman Sachs says these stocks could beat an increasingly likely recession

“The macro picture is arguably more challenging than it has been for some time,” says Goldman Sachs, which is favoring a barbell strategy for the recession jitters.

The bank named several buy-rated stocks it thinks could do well against the current macro backdrop.

Pro subscribers can read more here.

— Zavier Ong

U.S. Treasury yields notch new decade-highs

The U.S. 10-year Treasury yield moved up as high as 4.272%, after topping 4.2% for the first time since 2008.

The policy-sensitive 2-year Treasury yield also rose to 4.639%, at its highest levels in 15 years.

The yield on the 30-year Treasury soared to a new 11-year peak of 4.266%.

Yields and prices move in opposite directions and one basis point equals 0.01%.

–Jihye Lee

CNBC Pro: Stay invested in chip stocks, one fund manager reveals how he’s trading the sector

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European markets higher after UK fiscal U-turns; EU energy announcement

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The U.K.’s new Finance Minister Jeremy Hunt made big fiscal announcements Monday.

House of Commons – PA Images / Contributor / Getty Images

LONDON — European markets are higher as the region feels the impact of the U.K.’s fiscal U-turns on Monday and anticipates new EU measures to tackle energy prices. The Stoxx 600 index is up 0.4%.

Most sectors and major bourses have made gains at 11.00 a.m. London time, with autos leading increases up 2.2%, followed by technology and financial services both at 1.4%.

Basic resources, health care and oil and gas have dipped into the red, with losses below 1%.

The British pound rose and bond yields fell after new Finance Minister Jeremy Hunt scrapped most of Prime Minister Liz Truss’ fiscal policies in an announcement Monday. Sterling is down 0.7% to $1.1353 at 11.00 a.m.

Truss apologized for the “mistakes” she made in her first six weeks in the position.

U.S. stock futures rose Tuesday morning after the Nasdaq Composite posted its best daily performance since July. Futures tied to the Dow Jones Industrial Average gained 373 points, or 1.23%. S&P 500 futures jumped 1.46% and Nasdaq 100 futures climbed 1.7%.

Shares in the Asia-Pacific traded higher on Tuesday after Wall Street’s rally overnight. Australia’s S&P/ASX 200 gained 1.68% to lead gains in the region, the Nikkei 225 was 1.38% up, while the Topix added 1.11%.

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Tracking global negativity ahead of key inflation data

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European markets were choppy on Monday as volatility continued amid concerns over economic growth and monetary policy tightening from central banks.

The pan-European Stoxx 600 hovered around the flatline by mid-afternoon, having fallen more than 0.8% in early trade. Retail and chemicals stocks both added 2% while utilities fell 1.1%.

Along with concern over interest rate hikes from central banks and their impact on economic growth, markets in Europe are also watching developments in Ukraine, where the war is showing signs of escalating. Multiple explosions hit the center of Ukraine’s capital Kyiv on Monday.

European shares initially followed negative global sentiment as investors bet that last week’s U.S. jobs data will keep the Federal Reserve on an aggressive path of interest rate hikes. However, opening losses were all but erased by late morning.

U.S. stock futures were higher in early deals Monday, with Wall Street looking ahead to a key inflation print on Thursday and the beginning of corporate earnings season.

Markets in Asia-Pacific retreated overnight, with Hong Kong’s Hang Seng index leading losses as Chinese chip stocks listed in the city plunged following new export rules from the U.S.

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Stocks close out tough quarter on economic fears

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LONDON ― European markets advanced on Friday, gaining some respite from a torrid week as the third quarter drew to a close.

The pan-European Stoxx 600 added 1% in early trade, with oil and gas stocks climbing 2.2% to lead gains as all sectors and major bourses entered positive territory.

Global stocks struggled in recent sessions amid fears over slowing growth and aggressive monetary policy tightening.

The widespread sell-off on Wall Street continued on Thursday, with all three major averages falling sharply as investors assessed the outlook for future rate-hiking decisions from the U.S. Federal Reserve and their impact on the markets. The S&P 500 hit a fresh low for the year. Stock futures were mixed in early premarket trade on Friday.

Shares in Asia-Pacific also retreated on Friday following the overnight plunge stateside, though new data showed Chinese factory activity unexpectedly expanded in August.

Investor focus in Europe on Friday will shift to initial euro zone inflation figures for September, due at 10 a.m. London time, with economists expecting annual consumer prices to have increased by a fresh record high of 9.7%.

Volatility continues in U.K. markets after the Bank of England intervened in the bond market on Wednesday in order to shore up the country’s financial stability, after a historic sell-off in long-dated gilts. Sterling also hit an all-time low on Monday following the new government’s widely condemned fiscal policy announcements, but has staged a significant rally in recent days.

Stateside, several Fed officials are due to speak on Friday afternoon, and the markets will be watching closely for indications as to the pace of future rate hikes from the central bank.

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European markets move higher after record ECB rate hike

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European markets were higher Friday, as investors reacted to a record rate hike by the European Central Bank and further comments from Federal Reserve Chair Jerome Powell.

The pan-European Stoxx 600 was up 1.7% in afternoon trade, with all sectors trading in positive territory. Mining stocks were 2.8% higher to lead gains, while banks were up 2.5%.

On Thursday, the European Central Bank announced a 75 basis point interest rate rise, taking its benchmark deposit rate to 0.75%. The bank also revised up its inflation expectations — to an average of 8.1% in 2022 — and said it expects to hike rates further as “inflation remains far too high and is likely to stay above target for an extended period.”

Meanwhile, the Fed’s Powell said Thursday that the U.S. central bank will raise rates to tackle inflation “until the job is done.”

“History cautions strongly against prematurely loosening policy,” Powell said at the Cato Institute, a libertarian think tank based in Washington, D.C. “I can assure you that my colleagues and I are strongly committed to this project and we will keep at it until the job is done.”

Markets in Asia-Pacific were higher as investors digested the slew of central bank news, and U.S. stock futures were also in positive territory.

Meanwhile, world leaders offered tributes to Queen Elizabeth II, after Britain’s longest-serving monarch died Thursday at age 96.

The Bank of England on Friday said it would postpone its September Monetary Policy Committee meeting by a week as the country enters a period of national mourning.

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