End of a winning week on Fed’s dovish bets

European markets are muted but post a sixth week of gains

The European Stoxx 600 index finished unchanged on Friday, capping off an upbeat week that saw it breach a three-month high and secure a sixth week of gains.

Major German and French stock exchanges were unchanged as the UK’s FTSE 100 gained 0.3%.

Expectations of slower Federal Reserve rate hikes and economic data suggesting that upcoming recessions in Germany and the broader eurozone could be soft buoyed markets.

This is despite the negative performance of stocks such as Credit Suisse, which is facing major restructuring after several scandals.

—Jennifer Reid

Stocks open slightly changed before the short trading day

Shares opened little changed on Friday ahead of short trading day as Wall Street looks to cap off a winning holiday week.

The Dow Jones Industrial Average rose 19 points, or 0.09%. The S&P 500 lost 0.03% and the Nasdaq Composite fell 0.48%, weighed down by shares of Activision Blizzard, which fell nearly 4% on news that the FTC could prevent Microsoft from taking over the games.

—Carmen Reinicke

Credit Suisse shares are down more than 5% to an all-time low

Credit Suisse Shares fell more than 5% on Friday, hitting an all-time low of 3.37 Swiss francs ($3.55).

The embattled Swiss lender has seen its shares continue to fall despite obtaining more than $4 billion in funding from investors, including the Saudi National Bank, to shore up its financial position.

Credit Suisse is undergoing its second strategic review in less than a year to address its investment bank’s continued underperformance and a series of risk management and compliance failures, which have burdened the bank with significant litigation costs.

-Elliot Smith

Investor fear of missing out on the upside is back, says the analyst

Emmanuel Cau, head of European equity strategy at Barclays, speaks on CNBC’s “Squawk Box Europe”.

We are still positive on the UK but it is headed for a deep recession, says the chief economist

We are still positive on the UK but it is headed for a deep recession, says the chief economist

The UK is headed for a deeper recession than Europe and the US, according to Rupert Thompson, chief economist at investment firm Kingswood.

Black Friday transactions correspond to 2021 so far, says Barclaycard

Black Friday card transaction volume is in line with 2021 levels, according to data from Barclaycard Payments.

The data covered purchases made up until 10am London time via Barclaycard Payments, which processes £1 out of every £3 spent with debit and credit cards in the UK

Investors are keeping tabs on the annual shopping spree to see how inflation and cost-of-living issues are affecting consumer spending.

— Hannah Ward Glenton

German yield curve inversion hits new 30-year high

Germany’s yield curve has hit its deepest inversion since 1992, Reuters reported, citing Refinitiv data.

The gap between 2-year and 10-year government bond yields was -27 basis points on Thursday and -26 basis points on Friday.

Many economists see an inverted yield curve as a precursor to a recession.

There is widespread consensus among analysts that Germany is heading for a recession, even though Friday’s final GDP reading for the third quarter showed growth of 0.4% qoq and 1 .3% year over year, fueling hopes it will be weak.

November Eurozone PMI data showing a moderation in the slowdown in economic activity also contributed to cautious optimism.

—Jennifer Reid

German GDP growth bodes well for a milder recession

German GDP data shows that the country’s economy grew slightly in the third quarter than expected thanks to consumer spending.

Europe’s largest economy grew 0.4% compared to the second quarter and 1.3% year on year, according to the Federal Statistical Office.

Germany is expected to fall into a recession, but data suggests it may not be as bad as initially expected.

— Hannah Ward Glenton

Stocks on the move: UK homebuilders down in first-time buyer survey, Rockwool up 4%

Shares of British homebuilders Taylor Wimpy, bellway And Khaki all fell by more than 2% in early trading after a survey showed first-time UK buyers increasingly preferring rental properties.

At the top of the Stoxx 600, Danish manufacturer of mineral wool products Rockwool International gained 4% after Morgan Stanley raised its price target for the stock.

Here are the opening calls

of Britain FTSE 100 it is seen about 2 points higher at 7,467, that of Germany DAX extension it should add about 8 points to 14,548 and France CA 40 it should slide about 6 points to 6,701.

CNBC Pro: Asset manager names two stocks short as UK commercial property turns ‘toxic’

The UK commercial property sector is in a “toxic environment” for investors, according to Plurimi Wealth’s chief investment officer.

Patrick Armstrong told CNBC’s Pro Talks that the real estate sector is “sensitive” to higher interest rates, which he believes will lead to lower property values ​​and stock prices.

He revealed two stocks he was betting against in the industry by selling their shares.

CNBC Pro subscribers can read more here.


CNBC Pro: The best-performing asset manager picks stocks that are set to win as margins are squeezed

Patrick Armstrong, chief investment officer at Plurimi Wealth, believes margin compression is the “biggest risk” to the stock. But he thinks some stocks could beat the trend.

“Owning sectors with defensible margins or that are creating squeeze margins elsewhere,” he added, naming the sectors and stocks he likes best.

Pro subscribers can read more here.

— Zavier Ong

CNBC Pro: UBS says 2023 recession will be an inch deep but a mile wide – and that’s not a given in stocks

Global economic conditions will change next year and that will change the markets and sectors that have underperformed, according to the chief strategist of UBS Investment Bank.

“It’s an inch deep but it’s a mile wide,” he said of the expected recession. “Global growth is at 2% and that’s not discounted in equities,” Bhanu Baweja told CNBC’s “Squawk Box Europe” on Wednesday.

He also named which sectors he expects to outperform next year.

CNBC Pro subscribers can read more here.

Jennifer Reid


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