Open to close, stocks, data, earnings and news

Open to close, stocks, data, earnings and news
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Eurozone PMI falls to 20-month low as recession likely

Business activity in the eurozone fell more than expected last month, raising the prospect of a recession in the 19-member common currency bloc.

S&P Global’s final euro zone composite PMI (purchasing managers’ index), seen as a reliable gauge of economic health, fell to a 20-month low of 48.1 in September, missing an initial estimate of 48.2 from 48.9 in August. Any reading below 50 indicates contraction.

– Elliot Smith

Stocks on the move: Nordnet down 6%, Avanza down 5% after September numbers

Swedish financial services companies advance and Nordnet They fell 5% and 6% respectively in early trade after posting their monthly figures for September.

At the top of the Stoxx 600, the German chip maker infineon earned 4%.

More German companies are planning price increases, says the Ifo Institute

More German companies plan to raise prices next month, according to a new Ifo Institute survey published on Wednesday.

Economy-wide price expectations for next month were 53.5 points in September, up from a seasonally adjusted 48.1 in August. The food price index was 100 points from 96.9 in August.

“Unfortunately, this probably means that the inflationary tide is not about to subside,” said Timo Wollmershäuser, Ifo’s head of forecasts.

“Especially when it comes to gas and electricity, the price belt has not been exhausted yet.”

– Elliot Smith

CNBC Pro: Bank of America lays out its global picks for the quarter, giving a stock a 100% upside

Rising interest rates, rising energy prices and political turmoil in parts of the world dragged stocks down in the final quarter of this year.

To help investors manage volatility, Bank of America has released its top “short-term stock recommendations” for the next quarter, which will “significantly outperform” its peers.

CNBC Pro subscribers can read about five of their stock picks here.

– Ganesh Rao

The dollar index fell to 110 again

One factor helping equity markets on Tuesday could be the dollar, which weakened slightly for the fifth straight day.

The DXY US Dollar Currency Index was down 1.5% at 110.06 in afternoon trade. Last week, the index was trading as high as 114.78 when there were concerns about the failure of the UK government bond market.

The British pound and the euro were each up more than 1% against the dollar on Tuesday. The dollar also fell against the Japanese yen.

– Jesse Pound, Gina Francolla

CNBC Pro: Market headed for ‘best week of the year,’ says pro — and names 2 stocks to play it off

Market veteran Phil Blancato, whose firm has more than $4 billion in assets under management, said he expects next week to be a “turnaround week” for the markets.

Investors should take the opportunity to “jump into the market” as he names two stocks to take advantage of the upcoming rally.

Pro subscribers can read more here.

– Xavier Ong

Stifel’s Barry Bannister said there was “room for a rally” after two days of earnings

Stifel chief equity strategist Barry Bannister said stocks could go further after a sharp two-day rally this week.

“I don’t think you need to worry about a recession until the second half of ’23,” Stifel chief equity strategist Barry Bannister said on CNBC’s “Closing Bell: Overtime” on Tuesday. “So there is room for a rally heading into early next year.”

The strategist said there could be a “conditional pause” at the December meeting as the Federal Reserve considers the impact of its rate hike plan on inflation.

“Leading inflation is coming down, global liquidity is pretty tight. They don’t want to kill the patient to cure the disease,” Bannister said. “If the data continues to go their way, the break will continue, and if the data doesn’t go their way, they’ll go back up and we’ll go right back down.”

– Sara Min

CNBC Pro: This is not a market bottom, Morgan Stanley says, names 3 things that need to happen first

According to Morgan Stanley, there cannot be a sustained market bottom unless three conditions are met.

“We … remind readers that the last few innings of every bear market are very difficult to trade because volatility tends to be extreme,” they said. “None of the conditions we are looking for to end this bear market are in place.”

Pro subscribers can read more here.

– Weizhen Tan

European markets: Here are the opening calls

European shares are headed for a lower open on Wednesday, breaking the positive trend seen in the previous session.

UK’s FTSE is expected to open 27 points lower at 7,059, Germany’s DAX down 59 points at 12,606, France’s CAC 40 down 25 points at 6,005 and Italy’s FTSE MIB down 112 points at 21,426, according to IG data.

The expected declines on Wednesday came after European markets rose yesterday along with the rest of Europe. Stoxx 600 Closes 3% higher. Travel and leisure stocks rose 6.1% as all sectors and major bourses entered positive territory to gain.

The British pound It rose on Tuesday after the UK the government’s dramatic policy U-turn and UK sovereign bond yields also fell after last week’s strong sell-off.

Data released on Wednesday included final euro zone PMI data for September and German import and export data for August. Profits come from Tesco and Bang & Olufsen.

– Holly Elliott

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