European markets close higher as mining and retail sectors gain

European markets close higher as mining and retail sectors gain

The Stoxx 600 continues to trade at the 3-month high

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

The 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 bleak economic data, weak consumer confidence and rising cost of living in Europe, markets rallied on weaker than expected US inflation, anticipating a slower pace of interest rate hikes. interest.

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

Banking group Unicredit said the reading “dispels fears of a severe recession and is consistent with a mild technical recession at the start of the year.”

—Jenni Reid

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

Shares rose at Wednesday’s open on the last full trading day of the week. Markets will be closed Thursday for the Thanksgiving holiday and close early Friday.

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

—Carmen Reinicke

Stocks in motion: Nemetschek up 7%, Endesa down 6%

Shares of Nemetschek climbed 7.5% in the early afternoon after the German software company launched a new cloud-based service on Tuesday.

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

EBRD: real risk that European companies will be unable to bear the debt burden

EBRD: real risk that European companies will be unable to bear the debt burden

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

The CEO of the Swiss Pension Fund Foundation says he is “not convinced” by the restructuring of Credit Suisse

The CEO of the Swiss Pension Fund Foundation says to himself

Vincent Kaufman, CEO of the Ethos Foundation, which represents hundreds of Swiss pension funds that are active shareholders of Credit Suisse, criticizes the bank’s strategic overhaul and treatment of existing shareholders ahead of a key vote.

Recession likely to be an inch deep, but a mile wide, says UBS strategist

Recession likely to be an inch deep, but a mile wide, says UBS strategist

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

Goldman Sachs: Energy Crisis Will Plunge Eurozone Into “Shallow” Recession

Goldman Sachs: the energy crisis will plunge the euro zone into a recession

Sven Jari Stehn, chief European economist at Goldman Sachs, said the energy crisis will push the eurozone into a “pretty shallow” recession next year. However, he adds that the region is “roughly” at the peak of inflation, with price increases expected to approach 3% next year.

It’s a good time to invest when asset prices are as low as they are, says Yogi Dewan

It's a good time to invest when asset prices are as low as they are, says Yogi Dewan

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

Eurozone PMIs point to recession but slowdown eases

Euro zone November PMI (Purchasing Managers Index) flash readings reaffirmed on Wednesday that the 19-member currency bloc had entered recession, but the slowdown in activity eased slightly.

S&P Global’s flash composite PMI, which encompasses 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 projections from a Reuters poll. for a drop to 47.0.

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

In the United Kingdom, the composite index changed little at 48.3 in November against 48.2 in October.

“Although business expectations have rebounded from the 30-month low in October – which was likely linked to the improving domestic political situation – current activity remains under heavy pressure due to weak confidence, cost pressures and tight financial terms,” ​​said Berenberg economists Holger Schmieding and Kallum Pickering. said in a note.

“Just as in the eurozone, businesses continue to create jobs. However, as labor market activity often lags broader economic trends, the slowing pace of job creation is likely a sign worrying that employment will eventually start to decline as the recession deepens over the winter.”

-Elliot Smith

Credit Suisse shareholders give green light to $4.2 billion capital increase

Swiss credit Shareholders on Wednesday approved a 4 billion Swiss franc ($4.2 billion) capital increase aimed at funding the struggling lender’s massive strategic overhaul.

Credit Suisse’s capital raising plans are divided into two parts. The first, which was supported by 92% of shareholders, allocates shares to new investors including the Saudi National Bank via 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.

The second capital increase issues newly registered shares with pre-emption rights for existing shareholders, and was adopted with 98% of the votes.

-Elliot Smith

Credit Suisse shares down 5% after restructuring update

Stocks in motion: Johnson Matthey down 6%, CTS Eventim up 4%

Johnson Matthey shares fell more than 6% to the low of the Stoxx 600 in early trading after the British chemicals group posted a drop in half-year profits, supply chain pressures weighing on production volumes for the company’s automotive customers.

Leading the index, German entertainment company CTS Eventim gained 4%.

Credit Suisse posts $1.6 billion loss in fourth quarter, holds shareholder vote on restructuring

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

The troubled lender last month announced a series of measures to address the continued underperformance of its investment bank and a series of risk and compliance lapses that have plagued 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.

-Elliot Smith

Here are the opening calls

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

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

Electric vehicles are rapidly gaining popularity, especially in China, the world’s largest market for electric vehicles.

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

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

Pro subscribers can learn more here.

— Zavier Ong

CNBC Pro: Morgan Stanley Lists Top Companies Likely to Have FTX Exposure

CNBC Pro: Goldman Says EV Batteries Are Getting ‘Critical’, Names 2 Stock Picks

According to Goldman Sachs, batteries for electric vehicles are gaining “critical importance” in the context of the energy transition.

The investment bank names two top stocks to play in the electric vehicle battery sector, offering a nearly 70% upside.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

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