Investors track data, Fed minutes

The Stoxx 600 continues to trade at 3-month highs

The Stoxx 600 index extended its rally to its highest level since August 19 in afternoon trading.

Gains were led by mining stocks, up 1.8%, travel stocks, up 1.5%, and technology and retail stocks, both up 0.4%.

Despite recent gloomy economic data, low consumer confidence and a rising cost of living in Europe, markets have rallied following US inflation readings anticipating a slower pace of interest rate hikes.

Meanwhile, Purchasing Managers’ Index figures for the euro zone released on Wednesday improved slightly from the previous month.

Banking group UniCredit said the reading “removes fears of a deep recession and is consistent with a mild technical slowdown at the end of the year.”

– Jenny Reid

Stocks open slightly higher in the last full trading day of the week

Stocks were up at the open on Wednesday, the last full trading day of the week. Markets will be closed for the Thanksgiving holiday on Thursday and close early on Friday.

The Dow Jones Industrial Average rose 98 points, or 0.29%. The S&P 500 rose 0.27% and the Nasdaq Composite gained 0.45%.

– Carmen Reinicke

Stocks on the move: Nemetschek up 7%, Andesa down 6%

of shares Nemetschek The German software company rose 7.5% by early afternoon after launching a new cloud-based service on Tuesday.

At the bottom of the index, Spanish power utility Andesa fell more than 6% after new targets for 2023-24 failed to excite analysts.

EBRD: Real risk of European companies unable to bear debt burden

EBRD: Real risk of European companies unable to bear debt burden

Beata Jaworcic, Chief Economist at the EBRD, discusses the European Bank’s Energy Transition Report 2022-23.

CEO of Swiss pension fund foundation says he is ‘not convinced’ by Credit Suisse restructuring

CEO of Swiss pension fund foundation says he is 'not convinced' by Credit Suisse restructuring
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Vincent Kaufmann, CEO of the Ethos Foundation, which represents hundreds of Swiss pension funds that are active shareholders in Credit Suisse, criticized the bank’s strategic overhaul and treatment of existing shareholders ahead of the key vote.

The recession will likely be an inch deep, but a mile wide, says a UBS strategist

The recession will likely be an inch deep, but a mile wide, says a UBS strategist

Bhanu Baweja, chief strategist at UBS Investment Bank, talks to CNBC’s “Squawk Box Europe.”

Goldman Sachs: Energy Crisis Will Push Euro Zone Into ‘Shallow’ Recession

Goldman Sachs: Energy Crisis Will Push Euro Zone Into 'Shallow' Recession

Goldman Sachs chief European economist Sven Jari Sten says the energy crisis will push the euro zone into a “fairly shallow” recession next year. However, he added that the region is “roughly” at peak inflation, with price increases expected to approach 3% next year.

Yogi Dewan says this is a good time to invest when asset prices are low

Yogi Dewan says this is a good time to invest when asset prices are low

Yogi Dewan of Hasiam Asset Management says it’s a good time to invest when asset prices are as low as they are.

Euro zone PMIs point to recession but recession eases

Euro zone November flash PMI (Purchasing Managers Index) readings on Wednesday reaffirmed that the 19-member currency bloc has entered a recession, but the slowdown in trade slowed somewhat.

S&P Global’s flash composite PMI, which includes services and manufacturing and is seen as a reliable gauge of economic health, rose to 47.8 in November from 47.3 in October, defying forecasts in a Reuters poll for a decline to 47.0.

Any reading below 50 represents a contraction in activity, and November was the fifth consecutive month of contraction.

In the UK, the composite index was little changed to 48.3 in November from 48.2 in October.

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“Although business expectations recovered from a 30-month low in October – possibly linked to an improving domestic political situation – current activity remains under severe pressure due to weak confidence, spending pressures and tight fiscal conditions,” Berenberg economists Holger Schmieding and Calum Pickering said. A note said.

“As in the euro zone, companies are still adding jobs. However, as labor market activity often lags behind broader economic trends, the slow pace of job creation is perhaps an ominous sign that employment will eventually begin to decline as the recession deepens over the winter.”

– Elliott Smith

Credit Suisse shareholders have greenlit a $4.2 billion capital raising

Credit Suisse Shareholders on Wednesday approved a 4 billion Swiss franc ($4.2 billion) capital raising aimed at financing a major strategic overhaul of the lender.

Credit Suisse’s capital raising plans are divided into two parts. The first, which had the support of 92% of shareholders, offered shares to new investors, including the Saudi National Bank, through a private placement.

The new share offering will see the SNB take a 9.9% stake in Credit Suisse, making it the bank’s largest shareholder.

In the second capital increase, newly registered shares are issued to existing shareholders with pre-emptive rights and passed with 98% of votes.

– Elliott Smith

Shares of Credit Suisse fell 5% after the restructuring update

Stocks on the move: Johnson May down 6%, CTS Eventim down 4%

Johnson fenugreek Shares fell more than 6% to the bottom of the Stoxx 600 in early trade after the British chemicals group reported a drop in half-year profit due to supply chain pressure on production volumes for the company’s automotive customers.

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At the top of the index, German entertainment company CTS Eventim added 4%.

Credit Suisse sees fourth-quarter loss of $1.6 billion, shareholders vote on restructuring

Credit Suisse on Wednesday forecast a fourth-quarter loss of 1.5 billion Swiss francs ($1.6 billion) as it undertakes a major strategic overhaul.

The beleaguered lender last month announced measures to address persistent underperformance at its investment bank and a series of risk and compliance failures that have saddled it with persistently high litigation costs.

Shareholders will vote on the bank’s restructuring and capital increase plans at an extraordinary general meeting on Wednesday.

Read the full story here.

– Elliott Smith

Here are the opening calls

Britain’s FTSE 100 is seen up about 12 points to 7,464, Germany’s DAX is expected to rise about 25 points to 14,447 and France’s CAC 40 is expected to rise about 15 points to 6,673.

CNBC Pro: UBS says self-driving cars could be a $100 billion market in China — and names stocks to drive it

Electric vehicles are rapidly gaining traction, especially in China, the world’s largest EV market.

But UBS believes autonomous driving will be an even bigger megatrend than electrification – with a market size of around $100 billion by 2030 in China alone.

Here’s how investors can play this megatrend, according to UBS.

Pro subscribers can read more here.

– Xavier Ong

CNBC Pro: Morgan Stanley lists major companies with potential FTX exposure

CNBC Pro: Goldman says EV batteries are becoming ‘critical’ and names 2 stock picks

According to Goldman Sachs, electric vehicle batteries are gaining “significant importance” amid the energy transition.

The investment bank has named two top stocks to play the EV battery sector, offering an upside of around 70%.

CNBC Pro subscribers can read more here.

– Weizen Ten


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