European markets open lower as UK political chaos continues

Soegeefx AppsEU MarketEuropean markets open lower as UK political chaos continues

European markets opened lower on Friday as political chaos in the U.K. continues following the resignation of Prime Minister Liz Truss. A leadership contest will now take place over the next week.

Meanwhile, EU leaders are still debating how to tackle the bloc’s energy crisis as they meet in Brussels, after Germany gave the green light for discussions around a price cap.

European markets

.FTSE FTSE 100 6922.02 -21.89 -0.32
.GDAXI DAX 12631 -136.41 -1.07
.FCHI CAC 40 Index 5988.14 -98.76 -1.62
.FTMIB FTSE MIB 21479.41 -222.09 -1.02
.IBEX IBEX 35 Idx 7548.8 -95.6 -1.25

The Stoxx 600 opened 0.4% down, while all sectors and major bourses opened in the negative. Retail led losses, down 1.6%, followed by household goods and basic resources.

U.S. stock futures are downafter a tumultuous day on Wall Street, with bond yields rising and a slew of wide-ranging corporate earnings. Futures for the Nasdaq 100, Dow Jones Industrial Average and S&P all slipped. Shares in the Asia-Pacific mostly traded lower on Friday as investors weighed inflation data from several economies.

Retail leads losses as UK reports lower sales figures

Retail leads losses in the European markets this morning, down 2.9%.

Britain’s retail sales figures were lower than expected, down 1.4% in September according to the Office for National Statistics.

The figure is 1.3% below pre-Covid levels in February 2020.

Retailers continue to cite rising prices and the cost-of-living crisis for hampering sales. The death of Queen Elizabeth II in September also caused many retailers to close.

— Hannah Ward-Glenton

Adidas shares down 7.2% after profit warning

Shares of Adidas have dropped 7.2% in early trade after the company issued a 2022 profit warning.

Puma is also trading around 4% lower following the Adidas announcement.

— Hannah Ward-Glenton

European markets: Here are the opening calls

The U.K.’s FTSE 100 is set to open 36 points lower at 6,905, according to data from IG.

Germany’s DAX is seen opening around 119 points lower at 12,636, France’s CAC is set to drop by 51 points to 6,026 and Italy’s MIB index is expected to fall around 205 points at 21,398.

— Hannah Ward-Glenton

CNBC Pro: Goldman Sachs says these stocks could beat an increasingly likely recession

“The macro picture is arguably more challenging than it has been for some time,” says Goldman Sachs, which is favoring a barbell strategy for the recession jitters.

The bank named several buy-rated stocks it thinks could do well against the current macro backdrop.

— Zavier Ong

U.S. Treasury yields notch new decade-highs

The U.S. 10-year Treasury yield moved up as high as 4.272%, after topping 4.2% for the first time since 2008.

The policy-sensitive 2-year Treasury yield also rose to 4.639%, at its highest levels in 15 years.

The yield on the 30-year Treasury soared to a new 11-year peak of 4.266%.

Yields and prices move in opposite directions and one basis point equals 0.01%.

Jihye Lee

CNBC Pro: Stay invested in chip stocks, one fund manager reveals how he’s trading the sector

The MSCI Semiconductor Index, down by 43% this year, reflects the market’s sentiment toward a potential slowdown in economic growth.

In such an environment, should investors hold or sell the sector? Fund manager Brian Arcese shares with CNBC Pro Talks the one chip maker to hold.

— Ganesh Rao

Source : CNBC

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