- October 31, 2022
- By: Admin1_blog
- EU Market, Indices
European markets are set to start the new trading week on a positive note after a shaky end to last week as investors digest the European Central Bank’s decision to raise its interest rate by 75 basis points.
On Monday, regional investors will be watching for the latest inflation figures from the euro zone for October, as well as third quarter gross domestic product (GDP) data.
Elsewhere overnight, shares in Asia-Pacific were mostly higher on Monday as China factory activity missed expectations, and markets look ahead to the U.S. Federal Reserve meeting later this week when it will announce its interest rate decision.
CNBC Pro: Tempted to buy the dip on tech stocks? Strategist reveals when to get back in
Amazon, Meta and Alphabet’s stocks all tanked last week after disappointing earnings, but strategist Dan Scott says investors looking to buy tech stocks on the dip should hold off for now.
Instead, market participants should wait for one important shift, Scott, head of multi-asset management at Swiss asset manager Vontobel, told CNBC.
— Ganesh Rao
Traders looking for sign of a slowdown from Fed
Wall Street will be watching the Federal Reserve statement closely this week for signs that the central bank will ease up on its rate hike pace.
According to the CME FedWatch tool, traders believe there is an 80% chance that the Fed hikes rates by three quarters of a point on Wednesday.
That would bring the central bank’s target range to 3.75% to 4%.
Beyond that, however, the market looks more uncertain. There is just a 44% probability of another hike of that size in December.
— Jesse Pound
The U.S. dollar has more room to strengthen on rate differentials: Wells Fargo
The U.S. dollar is expected to strengthen further due to rate differentials since central banks around the world are taking a “less hawkish” tone, according to Wells Fargo.
“We’re starting to see some of the foreign central banks … turn a little bit on the less hawkish side,” while the Federal Reserve maintains its hawkish stance, FX strategist Brendan McKenna said on CNBC’s “Squawk Box Asia.”
McKenna said he expects dollar strengthening to continue into the first quarter of next year “at minimum.”
— Jihye Lee
Factory activity in China shrank in October, missing expectations
China’s factory activity shrank in October compared with September, data from the National Bureau of Statistics showed.
The official manufacturing Purchasing Managers’ Index print came in at 49.2, missing expectations for a reading of 50 — the mark that separates monthly growth from contraction.
In September, the PMI reading stood at 50.1. China’s official non-manufacturing PMI came in at 48.7, compared with a print of 50.6 in September.
— Abigail Ng
CNBC Pro: These 12 cheap global stocks are expected to rally — and analysts love them
Stocks around the world have sold off this year on recession fears and soaring inflation — and are now looking cheap.
Analysts say there could be buying opportunities in some stocks that they expect to rally.
To find those stocks, CNBC Pro screened for names under the MSCI World index that met a number of criteria.
— Weizhen Tan
European markets: Here are the opening calls
European markets are set to start the new trading week on a positive note after a shaky end to last week as investors digested the European Central Bank’s decision to raise its interest rate by 75 basis points.
London’s FTSE index is expected to open 22 points higher at 7,063, Germany’s DAX up 73 points at 13,313, France’s CAC up 28 points at 6,299 and Italy’s FTSE MIB up 75 points at 22,508, according to data from IG.
Regional investors will be watching for the latest inflation figures from the euro zone for October, as well as third quarter gross domestic product (GDP) data.
Elsewhere overnight, shares in Asia-Pacific were mostly higher on Monday as China’s factory activity missed expectations, and markets look ahead to the U.S. Federal Reserve meeting later this week when it will announce its interest rate decision.
There are no major earnings or data releases.
— Holly Ellyatt
Source : CNBC
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