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European stocks set to slump at the open, following gloomy sentiment in Asia-Pacific

Soegeefx AppsEU MarketEuropean stocks set to slump at the open, following gloomy sentiment in Asia-Pacific

Holly Ellyatt

European stocks are heading for a lower open on Monday as markets enter the last quarter of the year.

The U.K.’s FTSE index is expected to open 73 points lower at 6,825, Germany’s DAX 202 points lower at 11,897, France’s CAC 40 down 94 points at 5,663 and Italy’s FTSE MIB 292 points lower at 20,182, according to data from IG.

The lower open expected in Europe this morning comes after a gloomy trading session in Asia-Pacific markets, with sharp moves in the price of oil. Brent crude futures and West Texas Intermediate

 futures jumped after reports that OPEC+ is considering an oil output cut of more than a million barrels per day, citing sources.

Such a move would be the biggest taken by the organization to address weakness in global demand.

ANZ sees significant chance of an OPEC+ cut as large as 1 million barrels per day

Ahead of an OPEC+ meeting on Oct. 5, ANZ sees a “significant chance of a cut” as large as 1 million barrels per day, analysts at the firm said in a note.

That move is likely to be made “to counteract the excessive bearishness in the market.”

The note added that any production cuts below 500,000 barrels per day, however, would be “shrugged off by the market.”

–Jihye Lee

CNBC Pro: Investment pro says ETFs are a $10 trillion opportunity — and reveals areas of ‘tremendous’ value

Exchange-traded funds offer the benefit of diversification, says Jon Maier, chief investment officer at Global X ETFs. He said the ETF market is “growing exponentially” and estimates it to be worth $10 trillion.

He names several opportunities for ETF investors in this volatile market.

— Zavier Ong

Oil prices jump on reports of OPEC+ mulling production cut

Oil prices jumped after reports that OPEC+ is considering an oil output cut of more than a million barrels per day, citing sources.

Such a move would be the biggest taken by the organization to address weakness in global demand.

Brent crude futures jumped 3.3% to $87.97 per barrel, while U.S. crude futures also popped 3.21% to trade at $82.04 per barrel.

— Jihye Lee

CNBC Pro: The five global stocks experiencing the de-globalisation trend, according to HSBC

New research from HSBC says supply chains, geopolitical tensions, and worsening financial conditions have forced many global companies to “substantially” turn inward in search of resilient revenue and growth.

In a tough economic environment with recessionary pressures, the bank said turning inwards is “probably helpful” for these stocks.

The report titled ‘A de-globalisation wave?’ said European firms’ foreign sales dipped below 50% in 2021, the lowest level in the last five years.

— Ganesh Rao

European markets: Here are the opening calls

European stocks are expected to open in negative territory on Wednesday as investors react to the latest U.S. inflation data.

The U.K.’s FTSE index is expected to open 47 points lower at 7,341, Germany’s DAX 86 points lower at 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB 132 points lower at 22,010, according to data from IG.

Global markets have pulled back following a higher-than-expected U.S. consumer price index report for August which showed prices rose by 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying economist expectations that headline inflation would fall 0.1% month-on-month.

Core CPI, which excludes volatile food and energy costs, climbed 0.6% from July and 6.3% from August 2021.

U.K. inflation figures for August are due and euro zone industrial production for July will be published.

— Holly Ellyatt

Source : CNBC

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