European markets post third session of gains
European markets closed higher for the third consecutive session, with the Stoxx 600 the index gained 0.5% on Thursday.
The FTSE 100 was unchanged, while France’s CAC 40 was up 0.4% and Germany’s DAX gained 0.8%. By sector, gains were led by the chemical sector, up 1.1%.
The best performing stock was LEG Immobilien, a German real estate company, which rose 6.7% after Morgan Stanley upgraded it to “overweight”.
Global markets were encouraged by indications that the US Federal Reserve is trying to slow the pace of interest rate hikes, while in Europe, this week’s PMI data showed that the decline in business in the eurozone has slowed slightly.
German housing market to slow but see overvaluations: central bank
A new report from the German central bank predicts a slowdown but no significant correction in the housing market.
Claudia Buch, vice president of the Bundesbank, told CNBC: “We see a slowdown in the growth of residential property prices, but it is not that the general momentum has reversed. So we still have overvaluations in the market.”
Stocks on the move: LEG Immobilien up 6%, Bridgepoint up 5%
LEG Immobilien shares soared 6.5% to lead the Stoxx 600 by mid-afternoon after Morgan Stanley upgraded shares of the German property firm to ‘overweight’ from ‘equal weight’.
British private investment firm Point Bridge Group rose more than 5%.
Turkey cuts rates by 150 basis points and closes the easing cycle
Turkey’s central bank cut interest rates by 150 basis points to 9% on Thursday and agreed to end its round of monetary policy easing, citing rising inflation risks.
The CBRT [Central Bank of the Republic of Turkey] came under continued pressure from President Recep Tayyip Erdogan to continue cutting rates despite rising inflation, which hit 85.5% year-on-year in October as food and energy prices continued to rise .
“Considering the rising risks to global demand, the Committee has assessed that the current key rate is appropriate and has decided to end the cycle of rate cuts that began in August,” the central bank said in a statement.
Read the full story here.
German economic sentiment improved in November, says Ifo Institute
The German Ifo Institute’s business climate index rose to 86.3 points in November from 84.5 in October.
“While companies were somewhat less satisfied with their current business, pessimism about the coming months has abated dramatically. The recession may prove to be less severe than many expected,” said Ifo chairman Clemens Fuest.
The index rose significantly in the manufacturing sector, where companies are less pessimistic about the future but rate their current situation as worse, Fuest explained.
“The number of new orders has decreased again. Although uncertainty about the future development of the business remains high, it has decreased slightly. But in energy-intensive industries, uncertainty has increased further,” he said.
Pound Exceeds $1.20 As Dollar Weakens On Weaker Fed Upside Expectations
GBP it cleared the key $1.20 level on Wednesday night as the American dollar it eased in response to weak PMI (Purchasing Managers Index) data and the minutes of the latest Federal Reserve policy meeting.
The pound sterling gained another 0.3% in early trading on Thursday, trading at around $1,209, while the pound EUR and the JPY it also gained ground against the retreating greenback.
Bulgari says wealthier consumers are continuing to spend despite growing recession fears
Jean Christophe-Babin of the Italian luxury fashion house Bulgari Group says that while demand for entry-level products tends to contract in times of recession, high-end consumers still have disposable income.
Stocks on the move: Elekta down 4%, UMG up 3%
Share price action was muted across the European blue chip index on Thursday morning.
Swedish manufacturer of radiotherapy equipment Elekta slips more than 4% to the bottom of the Stoxx 600 after missing second-quarter earnings expectations.
At the top of the index, Universal Music Group increased by 3.3%.
CNBC Pro: Betting against a UK supermarket, short seller predicts nearly 50% plunge in stock price
There is more pain to come for investors in a British supermarket company if a short seller’s prediction comes true.
The hedge fund currently holds a bearish bet worth £32.6m and expects shares of the grocer to fall 44%.
The fund’s chief investment officer also believes the supermarket will raise fresh capital by diluting shareholders year on year to keep afloat in a challenging environment.
CNBC Pro subscribers can read more here.
CNBC Pro: Asset manager says investors need to buy this large-cap stock right now
There’s a large-cap stock that investors need to buy right now, according to Rob Luna, chief investment strategist at asset manager Surevest.
It calls its CEO a “significant visionary.”
While Luna picked the only large-cap stock, he advised investors at large to reallocate into smaller names, naming two stocks he called “best of the breed.”
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: here are the opening notices
European markets are heading for a higher open on Tuesday as investors in the region appear to shrug off concerns among their US and Asia-Pacific counterparts over China’s tightening of Covid restrictions, which continue to put pressure on production.
The UK’s FTSE index is expected to open 27 points higher to 7.407, Germany’s DAX up 33 points to 14.419, France’s CAC up 20 points to 6.653 and Italy’s FTSE MIB up by 70 points to 24,433, according to data from IG.
The data releases include preliminary consumer confidence data for the eurozone in November.
— Holly Ellyatt