European stocks nudge higher as global markets await more U.S. inflation data

Elliot Smith – Holly Ellyatt

European stocks were slightly higher on Monday, following a positive trend set at the end of last week and overnight in Asia-Pacific markets.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE	VOLUME
.FTSE	FTSE 100	*FTSE	7425.3	74.23	1.01	61550374
.GDAXI	DAX	*DAX	13248.85	160.64	1.23	10476565
.FCHI	CAC 40 Index	CAC	6270.97	58.64	0.94	8277715
.FTMIB	FTSE MIB	*FTSE MIB	22341.34	246.78	1.12	68777303
.AEX	AEX Amsterdam Index	AEX	689.84	3.87	0.56	10898323
.IBEX	IBEX 35 Idx	*IBEX 35	8113.3	80.2	1	25882813

The pan-European Stoxx 600 edged 0.3% higher in early trade, with autos adding 2.2% to lead gains as most sectors and major bourses entered positive territory. Health care stocks fell 0.5%.

Global markets are gearing up for the latest reading of U.S. inflation, with the August data set to be released Tuesday.

The report is one of the last pieces of data on inflation the U.S. Federal Reserve will see ahead of its September meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation.

Fed Chair Jerome Powell reiterated last week that he is “strongly committed” to bringing down inflation.

U.S. stock futures were flat Sunday night while shares in the Asia-Pacific rose in overnight trading on improved risk sentiment. Mainland China, Hong Kong and South Korea markets are closed for a holiday.

CNBC Pro: Sterling has been tanking versus the dollar. Here’s how low it could go, according to the pros

The British pound has slid against the U.S. dollar over the past year, hitting a 37-year low against the greenback last week — and it could weaken even further, according to analysts.

DZ Bank’s Sonja Marten warned that GBP/USD is a currency pair that tends toward large swings, and gave a pretty bearish forecast.

— Zavier Ong

U.S. to broaden curbs on chip and tool exports to China, Reuters reports

The U.S. Department of Commerce plans to publish new regulations related to restricting exports of chipmaking equipment to Chinese factories that produce advanced semiconductors, Reuters reported, citing people familiar with the matter.

The rules will be based on letters sent to KLA, Lam Research and Applied Materials

earlier this year, when they were informed that government-issued licenses would be needed to sell such equipment to buyers that make chips with sub-14 nanometer processes.

The new regulations would likely include additional actions against China, sources told Reuters, adding they could be changed and published later than expected.

—Jihye Lee

CNBC Pro: Goldman reveals the ‘sweet spot’ for its favorite oil stocks — and gives one 35% upside

As fears over the global energy supply came back into focus last week, Goldman highlighted six oil and gas themes which it said looked attractive into the year end.

The investment bank sees total returns of 15% for large-cap stocks under its oil and gas coverage and names six themes to watch into the year end.

— Weizhen Tan

European markets: Here are the opening calls

European stocks are expected to open cautiously higher on Wednesday with the U.K.’s FTSE index seen 18 points higher at 7,560, Germany’s DAX 33 points higher at 13,944, France’s CAC 40 up 18 points at 6,616 and Italy’s FTSE MIB up 42 points at 23,029, according to data from IG.

Data releases include preliminary euro zone unemployment data for the second quarter as well as second quarter gross domestic product. The latest U.K. inflation numbers for July will be released as well as preliminary second quarter Dutch GDP.

Earnings come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.

Source : CNBC