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European stocks head for positive open as global markets focus on the Fed

Soegeefx AppsEU MarketEuropean stocks head for positive open as global markets focus on the Fed

Holly Ellyatt

European markets are heading for a positive start to the trading session on Tuesday with global investors focusing on the U.S. Federal Reserve’s policy meeting, which begins today.

The central bank is expected to hike interest rates by 75 basis points on Wednesday when its meeting concludes.

Many on Wall Street are looking for a signal from the Federal Open Market Committee’s statement or Chairman Jerome Powell’s press conference that the Fed could pause its hikes or reduce their size in the coming months.

Elsewhere overnight, Asia-Pacific shares were higher led by Hong Kong stocks and U.S. futures were higher on Tuesday morning as traders look ahead to the Fed meeting.

European markets closed higher Monday despite euro zone GDP and inflation data pointing to further pain ahead for the 19-member bloc, with consumer price inflation soaring to a record high in October and growth slowing markedly in the third quarter.

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Citi has picked a large electric car maker as one of its “top” buy ideas among Chinese stocks.

It expects shares in the automaker to rise by more than 260% over the next 12 months as EV sales soar.

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China’s factory activity shrank for a third consecutive month in October, private survey says

The Caixin manufacturing Purchasing Managers’ Index for October showed that factory activity contracted for the third month in a row.

The reading came in at 49.2, compared with expectations for a print of 49. In September, the manufacturing PMI was at 48.1, below the 50-point mark that separates growth from contraction.

PMI readings compare activity from month to month.

Official data from the National Bureau of Statistics came in at 49.2 on Monday, missing expectations for a print of 50.

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Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is in the latter camp, arguing the rally, once again, looks temporary.

He told CNBC what he thinks investors should buy — and short.

— Weizhen Tan

Hong Kong’s economy shrank by 4.5% in the third quarter

Hong Kong’s gross domestic product fell by 4.5% in the third quarter of the year compared with the same period a year ago, advance estimates from the Census and Statistics Department showed Monday.

That’s the worst contraction since the second quarter of 2020. Analysts polled by Reuters expected 0.7% growth, while GDP decreased 1.3% in the second quarter.

“The worsened external environment and continued disruptions to cross-boundary land cargo flows dealt a serious blow to Hong Kong’s exports,” the statement said, adding the drop in GDP was “mainly attributable to the weak performance in external demand during the quarter.”

Fixed capital formation, or investment, decreased by 14.3%, while exports and imports also fell.

— Abigail Ng

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Tesla may be an investor favorite for exposure to the EV industry, but Citi and HSBC name two alternatives to play the growing demand for electric vehicles.

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European markets: Here are the opening calls

European markets are heading for a positive start to the trading session on Tuesday with global investors focusing on the U.S. Federal Reserve’s policy meeting, which begins today. The central bank is expected to hike interest rates by 75 basis points on Wednesday when its meeting concludes.

As for Europe’s opening calls, here they are:

London’s FTSE index is expected to open 31 points higher at 7,135, Germany’s DAX up 80 points at 13,348, France’s CAC up 31 points at 6,304 and Italy’s FTSE MIB up 178 points at 22,696, according to data from IG.

European markets closed higher Monday despite euro zone GDP and inflation data pointing to further pain ahead for the 19-member bloc, with consumer price inflation soaring to a record high in October and growth slowing markedly in the third quarter.

Earnings come from BP,Fresenius and DSM on Tuesday. Data releases include manufacturing purchasing managers’ index figures from the Netherlands, Ireland and Sweden for October.

— Holly Ellyatt

Source : CNBC

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