European markets head for mixed open as global sentiment wavers

Holly Ellyatt

European stocks are heading for a mixed open on Wednesday as jitters set in over the state of the global economy.

Sentiment has been mixed overnight with shares in the Asia-Pacific region trading in mixed territory, weighed down by major U.S. indexes that fell more than 1% each Tuesday as recession concerns grow.

JPMorgan Chase CEO Jamie Dimon told CNBC on Tuesday that American consumers are still supporting the U.S. economy with consumer spending, but that may change in 2023.

Consumers have $1.5 trillion in excess savings from pandemic stimulus programs and are spending 10% more than in 2021, he said Tuesday on CNBC’s “Squawk Box.”

“Inflation is eroding everything I just said, and that trillion and a half dollars will run out sometime mid-year next year,” Dimon said. “When you’re looking out forward, those things may very well derail the economy and cause a mild or hard recession that people worry about.”

China’s reopening is a bigger driver for oil prices than cap on Russian crude, says Singapore official

China’s reopening will be a bigger driver for oil prices that the cap on Russian oil, Singapore’s foreign minister Vivian Balakrishnan told CNBC on Tuesday.

“I would expect to see a significant opening,” Balakrishnan said. “Now that has profound implications for the global economy, more so than an oil price cap.”

China’s medium to long-term playbook should hence focus on improving vaccination rates, Balakrishnan said.

“You can open up if you’ve got high vaccination rates. So I’d be watching to see what efforts China makes to ramp up vaccination in the seniors,” he added.

— Charmaine Jacob

CNBC Pro: UBS says shares in this global airline are set to soar by 55%

Shares of a global airline are set to soar by 55% over the next year, according to UBS.

The investment bank raised its price target after the pan-European airline said it expects to see bumper demand during Christmas.

— Ganesh Rao

CNBC Pro: ‘A gift to investors’: BlackRock says it’s time to rethink bonds

It’s time to rethink bonds, according to the BlackRock Investment Institute, which said “the lure of fixed income is strong” right now.

“Higher yields are a gift to investors who have long been starved for income. And investors don’t have to go far up the risk spectrum to receive it,” Philipp Hildebrand, vice chairman of BlackRock, and Jean Boivin, head of the BlackRock Investment Institute, wrote in a note last week.

They outlined their top ways to cash in.

— Zavier Ong

Inflation is eroding consumer wealth and may bring 2023 recession, Dimon says

American consumers are still doing well and supporting the U.S. economy, but that may change next year, according to JPMorgan Chase CEO Jamie Dimon.

Consumers have $1.5 trillion in excess savings from pandemic stimulus programs and are spending 10% more than in 2021, he said Tuesday on CNBC’s “Squawk Box.”

“Inflation is eroding everything I just said, and that trillion and a half dollars will run out sometime mid-year next year,” Dimon said. “When you’re looking out forward, those things may very well derail the economy and cause a mild or hard recession that people worry about.”

Dimon also opined on cryptocurrencies, the necessity of fossil fuels and other topics during the wide-ranging interview.

— Hugh Son

European markets: Here are the opening calls

European markets are heading for a lower open on Tuesday with global sentiment generally downbeat this week.

The U.K.’s FTSE index is expected to open 7 points lower at 7,549, Germany’s DAX 24 points lower at 14,423, France’s CAC down 18 points at 6,678 and Italy’s FTSE MIB down 47 points at 24,574, according to data from IG.

Data releases include Germany’s industrial orders for October. There are no major earnings.

— Holly Ellyatt

Source : CNBC