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European markets head for mixed open as investors guage economic outlook

Soegeefx AppsEU MarketEuropean markets head for mixed open as investors guage economic outlook

Holly Ellyatt

European markets are heading for a mixed open on Tuesday as investors guage the economic outlook in the region and wider global economy.

The mixed sentiment comes after a choppy session in the United States on Monday, after comments from Federal Reserve leaders Lael Brainard and Chris Waller about interest rate hikes.

While Brainard said the central bank could ease rate increases, Waller said the market was overly optimistic and should brace itself for higher rates. U.S. stock futures were higher Monday evening after ending the day lower.

Shares in the Asia-Pacific were mostly higher on Tuesday following the meeting between Chinese President Xi Jinping and U.S. President Joe Biden.

Global markets will be watching events at the Group of Twenty summit in Bali, Indonesia, that kicks off on Tuesday.

China’s industrial output, retail sales miss expectations in October

China’s industrial production grew 5% in the month of October compared with a year ago, slowing from an increase of 6.3% seen in September. The latest figure misses estimates of a 5.2% rise predicted in a Reuters poll.

Separately, retail sales in China fell 0.5% in October from a year ago, missing expectations.

Analysts polled by Reuters expected a 1% increase, and retail sales grew 2.5% in September.

— Abigail Ng

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CNBC Pro: Top Morningstar strategist says stocks are undervalued by 15% and shares 6 favorites

With many stocks in a bear market, equities could be undervalued by 15%, according to Morningstar.

The equity research firm’s chief U.S. strategist believes headwinds that were present earlier in the year will start to recede at the start of next year and benefit stocks.

Dave Sekera also shared his “fair value” assessment on six companies with a “wide economic moat” that will outperform in such an economic environment.

— Ganesh Rao

European markets: Here are the opening calls

European markets are set to open in mixed territory on Tuesday.

The U.K.’s FTSE index is expected to open 14 points lower at 7,374, Germany’s DAX down 6 points at 14,312, France’s CAC up 10 points at 6,617 and Italy’s FTSE MIB down 19 points at 24,464, according to data from IG.

Global markets will be watching events at the Group of Twenty summit in Bali, Indonesia, that kicks off on Tuesday.

The IEA’s latest oil market report is set to be released, as are Infineon and Vodafone earnings.

— Holly Ellyatt

Source : CNBC

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