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European slip at the open as traders await this week’s Fed meeting

Soegeefx AppsEU MarketEuropean slip at the open as traders await this week’s Fed meeting

Katrina Bishop

Karen Gilchrist

European markets opened lower Monday, after a tough week which saw stocks fall across the board.

The pan-European Stoxx 600 slipped 2.89% last week, as investors weighed concerns about the health of the economy, hot inflation figures and the U.S. Federal Reserve’s upcoming monetary policy meeting.

On Monday, major European markets continued their foray into the red. Germany’s DAX fell 0.6% at the open, France’s CAC 40 slipped 1% and Italy FTSE MIB also fell around 1%. Spain’s IBEX 35 was trading 0.47% lower.

The U.K.’s FTSE 100 is closed Monday to mark the funeral of Queen Elizabeth II, due to begin 11 a.m. London time.

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
.FTSE FTSE 100 *FTSE 7236.68 -45.39 -0.62 2140678271
.GDAXI DAX *DAX 12654.48 -86.78 -0.68 5910073
.FCHI CAC 40 Index CAC 6019.08 -58.22 -0.96 6845576
.FTMIB FTSE MIB *FTSE MIB 21876.7 -234.19 -1.06 107274368
.AEX AEX Amsterdam Index AEX 660.97 -3.86 -0.58 7501356
.IBEX IBEX 35 Idx *IBEX 35 7949.1 -35.6 -0.45 16358730

It comes after sterling hit a 37-year low against the dollar last week, as a combination of dollar strength and recession concerns hit the British currency.

Data due Monday includes construction output figures for the euro zone. Luis de Guindos, vice president of the European Central Bank, is also due to make a speech in Madrid at 10:00 a.m. London time.

Shares in Asia-Pacific fell on Monday, and U.S. futures were slightly lower.

The Fed’s two-day meeting is due to begin Tuesday, with markets expecting a 75-basis-point rate hike as the central bank strives to get soaring prices under control.

European markets open in the red

European markets opened well into the red Monday. Here’s where stocks were after 15 minutes of trading: France’s CAC down 0.94% Germany’s DAX down 0.58% Italy’s FTSE MIB down 0.92% Spain’s IBEX down 0.4%

— Katrina Bishop

Treasury yields tick higher

Treasury yields ticked higher early Monday. The yield on the 2-year Treasury bond rose 1 basis point to trade at 3.8713% at 2:45 a.m. ET. It comes after the yield last week climbed above 3.9% — a level last seen in November 2007.

The yield on the 10-year Treasury, meanwhile, was less than a basis point higher at 3.4554%. Yields move opposite to prices. One basis point is equivalent to 0.01%.

— Katrina Bishop

European stocks slid last week

The pan-European Stoxx 600 slipped 2.89% last week:

— Katrina Bishop

UK stock markets closed as country marks Queen Elizabeth’s death

In a release last week, the London Stock Exchange Group said it was “deeply saddened at the passing of Her Majesty Queen Elizabeth II.”

“The day of the funeral of Her Majesty Queen Elizabeth II, 19 September 2022, has been declared a UK bank holiday, therefore, London Stock Exchange (the “Exchange”) on Exchange markets will be closed,” it added.

— Katrina Bishop

CNBC Pro: Buy these inflation-beating funds to protect your money, strategist says

As inflation remains stubbornly high, where can investors hide out given that U.S. stocks and bonds alike have been volatile?

There are three types of funds that look appealing right now, according to Mark Jolley, global strategist at CCB International Securities. He named his favorites in each category.

— Weizhen Tan

Oil prices climb as lifting of Chinese Covid lockdown boosts demand outlook

Oil prices climbed on Monday as the Chinese megacity of Chengdu exits a two-week lockdown.

Both oil benchmarks each rose more than 1% earlier in the session, and Brent crude futures was last up 0.66% at $91.95 per barrel. U.S. West Texas Intermediate

gained 0.56% $85.59 per barrel.

The boost in demand outlook offsets fears that potential rate hikes later this week will raise recession risks.

— Lee Ying Shan

CNBC Pro: This ETF carries risk — but outperforms when volatility spikes

As volatility rears its head once again, investors looking for a short-term trade could opt for this ETF with a track record of outperformance in times of extreme market moves.

“It is probably the prospect of very quick and sizable gains when everyone else in the market seems to be losing their shirts that I believe is appealing about this fund,” Daniel Martins, head researcher and portfolio strategist at DM Martins Research, said.

Yet, despite the potential for high returns, the ETF carries a high level of risk, and is not for every investor.

— Zavier Ong

Stocks could fall below 3,700 before the next rally, says Fundstrat’s Newton

Mark Newton, head of technical analysis at Fundstrat, said investors shouldn’t get too tempted by a potential bounce in the coming days as the S&P 500 could fall under 3,700 before a more meaningful rally kicks in.

“September’s Triple Witching Friday close at multi-week lows is particularly negative for the prospects of a rally, and further selling still looks likely over the next couple weeks to undercut 3,700 before a relief rally can get underway in October,” he said.

The S&P 500 on Friday ended the week at 3,873.33.

“While one cannot rule out a 1-2 day bounce attempt given this week’s decline, I do not expect much strength until prices have reached support under 3,700 in October,” he added. “Tactically, ‘cash remains king’ and one should be patient until markets reach downside targets, and begin to show either volume and breadth divergences, or capitulation to buy.”

— Tanaya Macheel

Source : CNBC

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