Categories
Markets

European stocks climb as global markets look for rebound; Stoxx 600 up 1%

LONDON — European stocks advanced on Friday as global markets looked to regain some ground after a bruising week, with investors assessing the outlook for inflation and interest rates.

The pan-European Stoxx 600 added 1% in early trade, with banks climbing 1.9% to lead gains as all sectors and major bourses entered positive territory.

European markets fell on Thursday as investors remained concerned about slowing growth, interest rate hikes and red-hot April inflation data from the United States, which sparked concerns that a path of aggressive interest rate hiking lies ahead.

US Federal Reserve Chairman Jerome Powell said Thursday that he could not guarantee a so-called “soft landing” that tempers inflation without pushing the economy into recession.

Global stocks have endured a rollercoaster week but look set to regain some ground on Friday. Shares in Asia-Pacific advanced by mid-afternoon with Japan’s Nikkei 225 leading the way on a 2.6% climb.

Meanwhile, US stock futures were higher in early premarket trade as investors hope the S&P 500 can avoid sliding into bear market territory, with the index closing down more than 18% from its all-time high on Thursday, just 2% shy of an official bear market.

The tech-heavy Nasdaq is already in a bear market, closing Thursday down more than 29% from its all-time high, while the Dow Jones Industrial Average has failed for six consecutive trading sessions.

The Stoxx 600 in Europe began Friday’s session down 13% since the beginning of the year.

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Investors are also monitoring the geopolitical fallout from the war in Ukraine. Russia on Thursday threatened retaliation against Finland after Finnish leaders said the northern European nation must apply to join NATO “without delay.”

European leaders are also facing a race to secure alternative gas suppliers after Moscow announced sanctions on European subsidiaries of its majority state-owned corporation Gazprom. The move came after Ukraine’s state-owned grid operator suspended Russian flows into Europe through a key entry point.

On the data front, French inflation was confirmed at an annual 5.4% in April.

Euro area industrial production readings for March are due on Friday morning.

In terms of individual share price movement, British investment company Bridgepoint Group jumped more than 10% following its annual general meeting, while Finnish state-owned energy company Fortum climbed 9.9% in early trade.

Shares of Belgian pharmaceutical company UCB fell 13% after the US Food and Drug Administration said it cannot approve a key psoriasis drug.

Swedish industrial company Atlas Copco dropped 75% due to recalculation after a share split which came into effect on Friday, whereby one share was replaced by four new ordinary shares and one redemption share.

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Categories
Markets

Investors digest US inflation data for April

LONDON — European stocks are expected to fall sharply at the open as global markets digest the latest inflation reading out of the United States. The reading has sparked concerns that a path of aggressive rate hiking lies ahead.

The UK’s FTSE index is seen opening 88 points lower at 7,251, Germany’s DAX 216 points lower at 13,596, France’s CAC 40 down 107 points at 6,150 and Italy’s FTSE MIB down 488 points at 22,953, according to data from IG.

Global investors are digesting the April inflation reading from the US, which showed the consumer price index surged 8.3% in April as compared with a year ago. The inflation rate was higher than expected and still running close to a 40-year high of 8.5%.

Analysts are mixed on whether the data suggests inflation has hit a peak.

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The April reading, which represented a slight ease from March’s peak, was also above the Dow Jones estimate for an 8.1% gain. Shares on Wall Street dropped following the data and markets in Asia-Pacific declined in Thursday morning trade following the losses stateside.

US stock futures were slightly higher Wednesday evening as investors look ahead the latest US data on jobless claims and the producer price index, which measures prices at the wholesale level.

In Europe, earnings come from Veolia, Bouygues, Aegon, Allianz, Commerzbank, RWE, Siemens and Zurich Insurance. UK preliminary GDP figures for the first quarter are also due.

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Categories
Markets

Investors digest US inflation data for April

LONDON — European stocks are expected to fall sharply at the open as global markets digest the latest inflation reading out of the United States. The reading has sparked concerns that a path of aggressive rate hiking lies ahead.

The UK’s FTSE index is seen opening 88 points lower at 7,251, Germany’s DAX 216 points lower at 13,596, France’s CAC 40 down 107 points at 6,150 and Italy’s FTSE MIB down 488 points at 22,953, according to data from IG.

Global investors are digesting the April inflation reading from the US, which showed the consumer price index surged 8.3% in April as compared with a year ago. The inflation rate was higher than expected and still running close to a 40-year high of 8.5%.

Analysts are mixed on whether the data suggests inflation has hit a peak.

Stock picks and investing trends from CNBC Pro:

The April reading, which represented a slight ease from March’s peak, was also above the Dow Jones estimate for an 8.1% gain. Shares on Wall Street dropped following the data and markets in Asia-Pacific declined in Thursday morning trade following the losses stateside.

US stock futures were slightly higher Wednesday evening as investors look ahead the latest US data on jobless claims and the producer price index, which measures prices at the wholesale level.

In Europe, earnings come from Veolia, Bouygues, Aegon, Allianz, Commerzbank, RWE, Siemens and Zurich Insurance. UK preliminary GDP figures for the first quarter are also due.

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Categories
Business

investors look ahead to US inflation data for April

LONDON — European stocks advanced on Wednesday morning as investors looked ahead to the latest inflation reading.

The pan-European Stoxx 600 added 1.2% by mid-morning. Autos jumped 2.9% to lead gains as all sectors traded in positive territory except health care, which fell 0.9%.

The positive morning in Europe came after choppy trading sessions in the region, and in markets further afield.

European stocks climbed on Tuesday as global markets rebounded from a broad sell-off in recent days, prompted mainly by concerns about inflation and rising interest rates — and the potential for a global recession.

On Tuesday, US stocks seesawed as the major averages struggled to recover from three days of heavy selling that brought the S&P 500 to its lowest level in more than a year.

Europe, we think, is in the center of the storm. We think the gas disruptions are likely to worsen.

salman ahmed

Global Head of Macro and Strategic Asset Allocation, Fidelity International

Investors are looking ahead to US inflation data for April on Wednesday which is expected to come in slightly below March’s 8.5% and could signal that inflation has reached a peak.

Recent market volatility has been driven by investor concerns over rising interest rates and question marks over how aggressively the Federal Reserve will act to curb rising inflation. In addition, investors continue to monitor the ongoing conflict in Ukraine and lockdowns in China.

European natural gas prices jumped on Wednesday after Ukraine’s state-owned grid operator suspended Russian gas flows through a key entry point.

Gas TSO of Ukraine on Tuesday announced force majeure on its Sokhranivka gas metering station and Novopskov border compressor station, both of which are situated in Russian-occupied territory in eastern Ukraine and account for almost a third of gas flows from Russia to Europe.

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Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, told CNBC on Wednesday that his team were underweight on stocks across the board, but favored the US over Europe.

“Europe, we think, is in the center of the storm. We think the gas disruptions are likely to worsen,” he added.

Overnight, shares in Asia-Pacific were mixed as investors watched for market reaction to the release of higher-than-expected Chinese inflation data for April. Meanwhile, US stock futures were higher in early morning trading Wednesday ahead of the forthcoming US inflation data.

In Europe, German inflation in April rose to an annual 7.4%, its highest print since 1981.

Earnings from a wide range of companies were released before the bell, including Alstom, Commerzbank, Continental, E.On, Siemens Energy, Thyssenkrupp and Tui.

British catering company Compass Group jumped 9.6% after an upbeat earnings report, while German engineering and steel conglomerate Thyssenkrupp also added more than 10% after beating expectations.

Swedish Match shares climbed 8.7%, building on Tuesday’s surge after the tobacco company agreed to a $16 billion sale to US giant Philip Morris International.

British home emergency repairs firm HomeServe bounced more than 11% after Bloomberg reported that Canada’s Brookfield Asset Management was nearing a takeover of the company.

At the bottom of the Stoxx 600, German biotech firm Evotec plunged more than 14% after its first-quarter results.

Shares of German drugmaker Bayer fell 6.5% after US President Joe Biden’s administration asked the US Supreme Court not to consider the company’s appeal to dismiss claims from customers alleging that its Roundup weedkiller causes cancer.

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Categories
Business

investors look ahead to US inflation data for April

LONDON — European stocks advanced on Wednesday morning as investors looked ahead to the latest inflation reading.

The pan-European Stoxx 600 added 1.2% by mid-morning. Autos jumped 2.9% to lead gains as all sectors traded in positive territory except health care, which fell 0.9%.

The positive morning in Europe came after choppy trading sessions in the region, and in markets further afield.

European stocks climbed on Tuesday as global markets rebounded from a broad sell-off in recent days, prompted mainly by concerns about inflation and rising interest rates — and the potential for a global recession.

On Tuesday, US stocks seesawed as the major averages struggled to recover from three days of heavy selling that brought the S&P 500 to its lowest level in more than a year.

Europe, we think, is in the center of the storm. We think the gas disruptions are likely to worsen.

salman ahmed

Global Head of Macro and Strategic Asset Allocation, Fidelity International

Investors are looking ahead to US inflation data for April on Wednesday which is expected to come in slightly below March’s 8.5% and could signal that inflation has reached a peak.

Recent market volatility has been driven by investor concerns over rising interest rates and question marks over how aggressively the Federal Reserve will act to curb rising inflation. In addition, investors continue to monitor the ongoing conflict in Ukraine and lockdowns in China.

European natural gas prices jumped on Wednesday after Ukraine’s state-owned grid operator suspended Russian gas flows through a key entry point.

Gas TSO of Ukraine on Tuesday announced force majeure on its Sokhranivka gas metering station and Novopskov border compressor station, both of which are situated in Russian-occupied territory in eastern Ukraine and account for almost a third of gas flows from Russia to Europe.

Stock picks and investing trends from CNBC Pro:

Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, told CNBC on Wednesday that his team were underweight on stocks across the board, but favored the US over Europe.

“Europe, we think, is in the center of the storm. We think the gas disruptions are likely to worsen,” he added.

Overnight, shares in Asia-Pacific were mixed as investors watched for market reaction to the release of higher-than-expected Chinese inflation data for April. Meanwhile, US stock futures were higher in early morning trading Wednesday ahead of the forthcoming US inflation data.

In Europe, German inflation in April rose to an annual 7.4%, its highest print since 1981.

Earnings from a wide range of companies were released before the bell, including Alstom, Commerzbank, Continental, E.On, Siemens Energy, Thyssenkrupp and Tui.

British catering company Compass Group jumped 9.6% after an upbeat earnings report, while German engineering and steel conglomerate Thyssenkrupp also added more than 10% after beating expectations.

Swedish Match shares climbed 8.7%, building on Tuesday’s surge after the tobacco company agreed to a $16 billion sale to US giant Philip Morris International.

British home emergency repairs firm HomeServe bounced more than 11% after Bloomberg reported that Canada’s Brookfield Asset Management was nearing a takeover of the company.

At the bottom of the Stoxx 600, German biotech firm Evotec plunged more than 14% after its first-quarter results.

Shares of German drugmaker Bayer fell 6.5% after US President Joe Biden’s administration asked the US Supreme Court not to consider the company’s appeal to dismiss claims from customers alleging that its Roundup weedkiller causes cancer.

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