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European markets open lower after central bank rate hike and flurry of earnings reports

Soegeefx AppsEU MarketEuropean markets open lower after central bank rate hike and flurry of earnings reports

Jenni Reid&Hannah Ward-Glenton

European markets opened lower this morning as investors continue to digest the European Central Bank’s decision to raise its interest rate by 75 basis points alongside a raft of corporate earnings releases.

European markets

TICKER COMPANY PRICE CHANGE %CHANGE
.FTSE FTSE 100 7014.98 -58.71 -0.83
.GDAXI DAX 13099.15 -112.08 -0.85
.FCHI CAC 40 Index 6188.78 -55.25 -0.88
.FTMIB FTSE MIB 22357.24 -233.17 -1.03
.IBEX IBEX 35 Idx 7868.8 -52.3 -0.66

Companies including Shell and Apple saw profits exceed expectations, while Meta, Heineken and Samsung reported slowdowns.

The Stoxx 600 was down 0.4% at the start of Friday trading.

Most sectors and major bourses were down in early trade, with mining stocks leading losses at 2.7%. Health care was the only sector in the green, up 0.2%.

Nasdaq 100 futures were lower Friday after disappointing Amazon earnings added to the already pressured index.

Hong Kong stocks led losses as shares in the Asia-Pacific fell as the Bank of Japan left its benchmark interest rate unchanged.

Natwest down 7% after reporting flat third quarter results

Natwest is down 7% after reporting flat third quarter results.

The British bank reported a £1.1 billion ($1.3 billion) profit, just missing analyst forecasts.

Natwest set aside an additional £247 million to reflect the difficult economic outlook in the U.K., which ate into profits.

— Hannah Ward-Glenton

Coming up: Bank of America CEO Brian Moynihan live on “Squawk Box Europe”

Bank of America CEO Brian Moynihan will give an exclusive live interview on CNBC’s “Squawk Box Europe” at 8.00 a.m. London time.

The bank released its third-quarter earnings on Oct. 17 and stressed that the resilience of the U.S. consumer was a reason to lower concerns for an economic recession.

— Hannah Ward-Glenton

European markets: Here are the opening calls

The FTSE 100 is expected to be down 32 points to 7,039 and Germany’s DAX 67 points lower at 13,155, according to data from IG. The CAC will be down 25 points to open at 6,226 and Italy’s MIB will be 89 points lower at 22,347.

— Hannah Ward-Glenton

CNBC Pro: Tech stocks are tumbling but one fund manager still loves Microsoft. Here’s why

Tech stocks have tumbled this week, as investor optimism fades following disappointing results from some of the sector’s biggest names.  

But fund manager Brian Arcese is standing by Microsoft, calling it a “solid long term defensive holding.”

— Zavier Ong

CNBC Pro: There’s a lot of pain ahead for markets, strategist warns

Investors should think twice before chasing the recent bounce in stocks, according to one strategist.

“I think the market rally is a breathing space rally,” Beat Wittmann, chairman of Switzerland’s Porta Advisors, told CNBC.

Jenni Reid

Chip stocks fall after U.S. official says allies could impose export limits on China soon

Semiconductor stocks in Asia slumped after U.S. Under Secretary of Commerce Alan Estevez said he expects an imminent deal with allies to limit some chip-related exports to China.

“We expect to have a deal done in the near term,” he said at a Center for a New American Security event.

Samsung Electronics dropped more than 3%, while SK Hynix tanked 6%.

Taiwan Semiconductor Manufacturing Company slid 1.56% and Semiconductor Manufacturing International Corporation lost 1.92%.

Earlier this month, the U.S. announced new export curbs on advanced technology exports to China in a bid to restrain Beijing’s military systems.

Japan and the Netherlands both also produce advanced equipment used to make chips, but do not have controls on exports to China yet.

— Abigail Ng

Bank of Japan keeps interest rates on hold as expected

Japan’s central bank left interest rates unchanged Friday, in line with predictions by economists in a Reuters poll.

The Bank of Japan also said it would purchase necessary amounts of Japanese government bonds at a fixed rate in order to keep 10-year JGB yields at 0%.

“The Bank will support financing, mainly of firms, and maintain stability in financial markets, and will not hesitate to take additional easing measures if necessary,” it said in its monetary policy statement.

— Jihye Lee.

Source : CNBC

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