European markets open to close, stock movements, news and data

German wholesale inflation for October well below expectations

Germany’s producer price index came in at -4.2% a month in October, the federal statistics office said on Monday, well below the Reuters consensus forecast for a 0.9% rise.

On an annual basis, wholesale prices rose 34.5%, below expectations for a 41.5% slope.

-Elliot Smith

Stocks on the Move: Virgin Money Up 13%, IDS Down 5%

virgin money The shares rose more than 13% to lead the Stoxx 600 in early trading after the company reported a rise in pre-tax profit for fiscal 2022 and announced a £50m share buyback program ( $59.4 million).

At the bottom of the index, stocks International Distribution Services – trading as Royal Mail – fell 5% as the company faces fresh waves of damaging industrial action by workers over the Christmas season.

Oil Prices Fall as China Faces Covid Concerns, Goldman Sachs Cuts Forecast

Oil prices fell nearly a dollar as China’s Covid concerns mounted and the nation saw its first virus-related deaths since May of this year.

Brent crude futures lost less than a dollar, or 0.9%, to settle at $86.83 a barrel and US West Texas Intermediate futures fell 1.09% to $79.21 a barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 a barrel for the fourth quarter of 2022, citing demand from China hit by rising Covid concerns and insufficient details of the Group of 7’s latest price cap on Russian oil.

“We think the market is entitled to be anxious about future fundamentals,” economists including Jeffrey Currie said in the note, adding that the potential for more lockdowns in China is equivalent to the latest OPEC+ production cut.

—Lee Yingshan

CNBC Pro: Strategist Says Chinese Tech Stocks Like Alibaba Are ‘Deeply Undervalued’

This year’s 30% drop in the value of Big Tech’s Chinese shares, as Ali Babait has made them “incredibly cheap,” according to investment bank China Renaissance.

Its head of equities, Andrew Maynard, not only believes the stock market appears to have bottomed out, but investors may miss out on a rally by remaining underweight China.

“Undoubtedly being underweight in China will cost you in the future,” Maynard said.

CNBC Pro subscribers can read more here.

—Ganesh Rao

Markets are watching for more hints on Fed and economic hikes in the coming week.

Investors may be a bit more cautious in the week ahead, with stocks looking for direction in quiet trade and bond market warnings of a recession growing stronger.

The Thanksgiving holiday on Thursday should mean that the markets will probably be quiet on Wednesday and Friday. Merchants will be monitoring Black Friday holiday shopping reports for consumer feedback.

“It really is a week where data dependency is the catchphrase,” said Julian Emanuel, senior general manager at Evercore ISI. “Bias [for stocks] is higher unless the data continues to deteriorate and the Fed remains on its hawkish line…which has clearly strengthened in the last 48 hours.”

Check out our full dive on what to expect in the coming week here.

—Patti Domm, Tanaya Machel

CNBC Pro: Morgan Stanley’s Mike Wilson Predicts S&P 500 Bottom, Calls It ‘Excellent Buying Opportunity’

Morgan Stanley Chief US Equity Strategist Mike Wilson says we are in the “final stages” of the bear market, but things will remain challenging for a while longer.

He predicts when, and at what level, the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

—Weizhen Tan

European markets: here are the opening calls

European markets will open lower on Monday as investors continue to monitor the uncertain economic outlook.

The UK’s FTSE index is expected to open 15 points lower at 7,386, Germany’s DAX is expected to be down 54 points at 14,378, France’s CAC is expected to be down 17 points at 6,629 and Italy’s FTSE MIB is expected to be down 54 points at 24,445, according to GI data.

No major gains on Monday. The data releases include German producer prices for October.

—Holly Ellyatt

Leave a Comment