European markets open for closing, data, earnings and news

US stocks open slightly higher

US stocks moved slightly higher on Wednesday morning despite growing concern about the outlook Another big rate hike from the Federal Reserve.

The Dow Jones Industrial Average rose 0.4% while the S&P 500 gained 0.5%. The Nasdaq also gained 0.8% in early trading.

Karen Gilchrist

Stocks on the go: Verbund stock up 12%, Ubisoft stock down 16%

Austrian Electric Company Verbond It jumped 12% late in the morning, sending a broad rally in European utilities shares as the market anticipated possible shifts in regulation to counter the continent’s deepening energy crisis.

At the bottom of the Stoxx 600, the French video game manufacturer Ubisoft Entertainment It fell more than 16% after the announcement of a Chinese conglomerate Tencent It increased its stake in the company, a move seen as reducing the likelihood of a full takeover.

– Elliot Smith

Investors await the European Central Bank’s interest rate decision

With Eurozone inflation expected to rise to at least 10% in the coming months, a “jumbo” rate hike of 75 basis points is certainly a possibility.

Bloomberg | Bloomberg | Getty Images

The euro rose against the dollar and the British pound on Wednesday morning, as the European Central Bank prepares for a crucial policy meeting on Thursday.

The European Central Bank is Expected to carry a series of price hikes And sacrificing growth in the region in an effort to curb inflation at 9.7%, which is expected to rise further.

Berenberg analysts said a “jumbo” rate hike of 75 basis points is a possibility and has been largely priced by the markets.

Sterling struggles as new PM takes office

Sterling fell against the US dollar and the euro on Wednesday morning, as new Prime Minister Liz Truss began her first full day in office.

Sterling was trading at $1.1495 at 8:30 AM London time, down 0.17% from the previous day, keeping it near its lowest traded level since the 1980s.

Analysts at ING said traders will address reports published on Tuesday that Truss plans to freeze energy bills at a cost of 130 billion pounds and provide billions more to support the business, which could affect the UK’s growth outlook and debt situation.

The euro was up 0.17% against the pound at 0.8611, ahead of the European Central Bank’s monetary policy meeting on Thursday, when it is expected to announce a 50 or 75 basis point interest rate hike.

The European Union’s central currency was up 0.02% against the dollar at $0.9902 after falling below 99 cents on Monday.

– Jenny Reed

Nomura cuts China’s GDP forecast – again

Nomura lowered its full-year Chinese GDP forecast to 2.7%, another drop from its previous estimate of 2.8% set in August.

The new forecast is based on Nomura’s analysis that found 12% of Chinese GDP to be affected by Covid controls on a weighted basis, up from 5.3% last week.

Several cities, including the tech hub of Shenzhen, have tightened Covid controls in the past few weeks after new local infections were reported. Chengdu also ordered people to stay at home while authorities conduct mass virus testing.

Read the The full story is here.

“Evelyn Cheng”

CNBC Pro: Tensions between Russia and Europe could trigger a “bullish shock” for oil markets

Oil and gas stocks are set to get a boost from rising tensions surrounding Russian gas supplies to Europe, according to an analyst.

Kenny Polkari, chief market strategist at SlateStone Wealth, told CNBC’s “Street Signs Asia” that investors should focus on big US energy names that are also good earnings drivers.

One stock he named is up 125% this year, and he says there is “more room to run.”

Professional subscribers can read more here.

– Weezin Tan

Oil prices fall amid expectations of higher interest rates and lower demand growth

oil prices Drops Wednesday after more Covid restrictions in China and expectations of further interest rate hikes globally.

The West Texas Intermediate While futures contracts fell 1.45% to stand at $85.62 a barrel Brent crude Futures fell 1.14% to $91.77 a barrel, giving up earlier gains after the latest OPEC+ meeting and its decision to cut production.

Reuters forecasts expect WTI to extend its downtrend to $83.17 per barrel.

– Lee Ying Shan

CNBC Pro: This chip stock has convincingly outperformed its peers this year — and analysts think it could rise

After years of strong market returns, semiconductor stocks have sold out heavily this year. But one stock came out relatively unscathed from the market carnage. Not only did it outperform its peers, it beat the S&P 500 by a diagonal mile.

Analysts believe that the stock can still rise.

Professional subscribers can Read more here.

– Xavier Ong

US Treasury yields are at their highest since mid-June

The bond sale boosted US Treasury yields to their highest levels since mid-June as investors weigh what strong economic data means for future interest rate hikes for the Federal Reserve.

The 10-year US Treasury yield rose 3.353%, the highest since June 16, when the yield was 3.495%. Yield is opposite to price.

The 30-year US Treasury yield was 3.484% and the 5-year US Treasury yield was 3.334%, both the highest levels seen since mid-June.

The two-year yield also rose to a daily high of 3.535%, but it is the highest note yield since Friday.

– Carmen Renick

European markets: here are the opening calls

European shares are expected to open cautiously higher on Wednesday, along with British stocks FTSE The index saw 18 points higher at 7,560, Germany Dax 33 points higher at 13944, France CAC 40 It rose 18 points to 6616 and Italy FTSE MIB It rose 42 points at 23,029, according to data from IG.

Data releases include Eurozone preliminary unemployment data for the second quarter as well as the GDP for the second quarter. The latest UK inflation figures for July will be released as well as preliminary Dutch GDP for the second quarter.

Earnings come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.

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