European markets were mixed Tuesday, with investors looking ahead to the start of the U.S. Federal Reserve’s two-day monetary policy meeting.
The pan-European Stoxx 600 index was flat in early afternoon trading, with sectors spread across tentatively positive and negative territory. Health-care and industrial stocks made the biggest losses, each down 0.5%, while autos were up 1%.
|.FCHI||CAC 40 Index||7289.96||13.82||0.19|
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Investors are widely anticipating that the central bank will hold interest rates steady when they announce their latest policy decision on Wednesday, and will be assessing the move to get a better sense of the central bank’s stance on inflation.
U.S. stock futures were slightly higher as Wall Street readied for the start of the Fed’s meeting, while markets in Asia-Pacific fell as traders awaited minutes from the Reserve Bank of Australia for its policy meeting on Sept. 5.
Swiss Re: Macroeconomic tailwinds ‘very good’ for life and health reinsurance companies
Paul Murray, CEO of Life and Health Reinsurance at Swiss Re, discusses how current macroeconomic conditions are affecting the sector and shares his outlook for the life and health reinsurance industry.
Stocks making gains: Billerud up 7%, Tui up 5%
Shares of Billerud soared more than 7% after Jefferies upgraded the Swedish paper and packaging company from “hold” to “buy.”
The investment bank said its sees “opportunity for Billerud to focus on value over volume, optimising its asset base, production mix and overall equipment effectiveness,” Reuters reported.
Tui shares were up more than 5% after the travel company confirmed expectations of a strong summer, with bookings “well ahead of [s]ummer 2022.” The company is “well positioned” to achieve its targets for 2023, Tui said in a trading update.
— Hannah Ward-Glenton
The shadow banking sector ‘is a worry,’ says PRA CEO
Sam Woods, deputy governor of the Bank of England and CEO of the Prudential Regulation Authority, discusses the British banking sector.
Stocks at the bottom: Kingfisher down 5%, Kion down 4%
Shares of German materials manufacturer Kion were down 3.9% in morning trade after Invesco announced it would divest its stake in the group, Reuters reported.
Invesco placed 4.41 million of its shares in the group to sell, which corresponds to around 3% of the company’s shares in the group.
Kingfisher fell to the bottom of the Stoxx 600 index after the company cut its annual profit outlook.
Shares of the home improvement retailer were down 5%.
— Hannah Ward-Glenton
Ocado shares rise on confirmed revenue outlook
Shares of Ocado were up 3% in early trade after the food delivery service reaffirmed its full-year outlook. The company reported an increase in revenue growth for the third quarter, up 7.2% year on year to £569.6 million ($705 million).
Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, said there had been a 1.5% increase in active customers to 961,000 at the end of the quarter.
— Hannah Ward-Glenton
European markets open lower
European markets opened lower Tuesday, with investors looking ahead to the start of the U.S. Federal Reserve’s two-day monetary policy meeting.
The pan-European Stoxx 600 index opened 0.2% lower, with sectors spread across tentatively positive and negative territory. Health-care stocks made the biggest losses, down 0.7%, while travel and leisure stocks were up 0.2%.
— Hannah Ward-Glenton
CNBC Pro: Morgan Stanley says higher oil prices could boost 2 global commercial real estate stocks
The recent increase in oil prices could provide a boost to London’s prime office real estate market, according to Morgan Stanley.
The Wall Street bank explained the newly discovered correlation between the sectors and named the two stocks expected to benefit from the trend.
— Ganesh Rao
Oil prices continues to push 10 month highs
Oil futures hit their highest levels in a year as expectations of a supply deficit continued to send prices to nearly $95 a barrel on Tuesday.
U.S. West Texas Intermediate crude gained more than 1% and hit $92.43, its highest level since Nov. 4, while Brent crude futures reached $94.77, its highest level since Nov. 16 when it traded as high as $94.79.
Prices have risen for three consecutive weeks, and Reuters reports that prices are on track for their biggest quarterly increases since Russia’s invasion of Ukraine in the first quarter of 2022.
Earlier this month, Saudi Arabia and Russia extended a combined supply cut of 1.3 million barrels per day to the end of the year.
— Lim Hui Jie
CNBC Pro: Rates are rising in Europe. HSBC names the region’s ‘most and least vulnerable stocks’
The European market has been weighed down by a spike in corporate lending rates.
“Our economists expect the bulk of the interest rate headwinds to emerge over the next eighteen months or so,” HSBC analysts said in a Sept. 15 note.
CNBC Pro takes a look at the bank’s two screens of “the most and least vulnerable” stocks: one for “cash-rich” companies and the other for “high leverage” names.
— Amala Balakrishner
Goldman Sachs says the Fed is done hiking even if the dot plot shows differently
The Federal Reserve is done hiking this year, even if the dot plot that’s set to release this week shows one more increase, according to Goldman Sachs.
“On November, we think that further labor market rebalancing, better news on inflation, and the likely upcoming Q4 growth pothole will convince more participants that the FOMC can forgo a final hike this year, as we think it ultimately will,” the firm’s chief economist Jan Hatzius wrote on Saturday.
“But we expect the dot plot to show a narrow 10-9 majority still penciling in one more hike, if only to preserve flexibility for now,” he added.
The dot plot shows where individual members expect to see rates trending over the next several years. The Fed concludes its two-day policy meeting Wednesday.
— Sarah Min
CNBC Pro: Analysts name 2 stocks to play the $104 billion EV charging industry — giving one 95% upside
Public electric vehicle charging infrastructure remains “critical” in driving further EV adoption, said analysts at investment bank TD Cowen.
The bank concluded that the world will require a “massive and rapid” buildout of charging infrastructure and installation that it estimates would require a total U.S. investment of $104 billion through 2030.
Here are some areas that will take up the bulk of that opportunity, as well as stocks that could benefit, according to TD Cowen.
— Weizhen Tan
European markets: Here are the opening calls
European markets are expected to open in mixed territory Tuesday.
The U.K.’s FTSE 100 index is expected to open 14 points higher at 7,662, Germany’s DAX up 7 points at 15,274, France’s CAC 4 points lower at 7,266 and Italy’s FTSE MIB down 10 points at 28,598, according to data from IG.
Earnings are set to come from Kingfisher and Ocado Retail. Data releases include euro zone final inflation figures for August.
— Holly Ellyatt
Source : cnbc