European markets expected to open broadly lower as traders assess the region’s economic outlook

Holly Ellyatt

European markets are expected to open broadly lower Wednesday as traders assessed the region’s economic outlook.

The U.K.’s FTSE 100 index is expected to open 4 points lower at 8,242, Germany’s DAX down 40 points at 20,308, France’s CAC down 22 points at 7,477 and Italy’s FTSE MIB down 83 points at 34,922, according to data from IG.

Traders will be keeping an eye on European consumer confidence and economic sentiment data. On the earnings front, Shell is set to release its fourth-quarter update.

Asia-Pacific markets traded mixed Wednesday while U.S. stock futures ticked higher. The move comes after a sharp decline in Big Tech stocks and renewed fears over the path of rate cuts spurred a sell-off on Wall Street on Tuesday.

European markets closed higher on Tuesday as investors in the region digested the latest inflation data that showed consumer prices in the euro zone rose to 2.4% in December, up from 2.2% in November.

The print — which was in line with expectations, according to a Reuters poll of economists — was lifted by high services costs and rising energy prices.

CNBC Pro: These 4 ETFs have outperformed the S&P 500 over the past five years

Four ETFs in Europe and North America have beaten the S&P 500 over the past five consecutive years, according to a CNBC Pro screen.

The U.S. benchmark rose by 23.3% in 2024 and 24.2% the previous year, making it particularly challenging for funds to outperform. It’s only the third time the S&P 500 has logged back-to-back gains of that size in the past century, according to Deutsche Bank.

CNBC Pro screened over 10,600 ETFs listed in Europe and North America to identify the four ETFs.

— Ganesh Rao

UBS says the ‘bull market remains intact’ this year

Despite expensive valuations, UBS continues to view U.S. equities and artificial intelligence-exposed parts of the market as attractive.

The firm predicts earnings growth to drive another year of “concentrated returns,” continuing 2024′s ‘Mag 7’ leadership.

“U.S. equity valuations are higher than average, but historically valuations have had very little correlation with returns over the next 12 months. Instead, profit growth matters more,” David Lefkowitz, CIO head of US equities for UBS, wrote in a Monday note to clients. “We think the bull market remains intact driven by solid economic and corporate profit growth.”

Lefkowitz expects “healthy” S&P 500 earnings per share growth of 9% this year, remaining bullish on stocks overall even as the firm expects periods of volatility in the year ahead.

— Pia Singh

CNBC Pro: Goldman loves this European stock riding the data center wave

Goldman Sachs is bullish on one of Italy’s cable manufacturing giants.

And the stock is among the latest additions to the investment bank’s “Conviction List – Directors’ Cut” for Europe.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are expected to open broadly lower Wednesday.

The U.K.’s FTSE 100 index is expected to open 4 points lower at 8,242, Germany’s DAX down 40 points at 20,308, France’s CAC down 22 points at 7,477 and Italy’s FTSE MIB down 83 points at 34,922, according to data from IG.

Traders will be keeping an eye on European consumer confidence and economic sentiment data. On the earnings front, Shell is set to release its fourth-quarter update.

— Holly Ellyatt

Source : cnbc