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European stocks closed 0.4% higher as optimism about a recession grew

Europe Stokes 600 The index ended the session up 0.4%, regaining most of the ground it lost on Tuesday, and putting it back near an eight-month high.

Gains were led by retail stocks, up 2.2%, followed by financial services and chemicals, both up more than 1%.

Germany’s DAX rose 1.2% to its highest level since February amid growing optimism about the production and growth outlook for this year.

– Jenny Reed

Stocks on the go: Wacker Chemie up 9%, stocks around town up 8%

German chemical company Walker Kimmy It rose 8.8% in late afternoon trading after UBS analysts said it should beat average analyst estimates in the coming quarter and reiterated the “buy” rating on the stock.

It was joined at the top of the Stoxx 600 index by the European real estate developer around the citywhich is up 8%, which puts it up 21.5% in 2023 so far — although it’s still down by about half on a one-year basis.

British insurer Direct Line remained the worst performer, dropping 24% after announcing it would forgo its final dividend for 2022. It follows December’s surge in claims due to bad weather, inflation and supply chain issues resulting in a loss of underwriting for the year. .

– Jenny Reed

Long-term British yields fell by 15 basis points

Long-term British government bond yields fell sharply, reaching their lowest level since December 19th.

yields on 10 yearsAnd 20 years And 30-year gold bonds All were down about 15 basis points at 2:15pm London time.

Yields move inversely to prices.

– Jenny Reed

The strategist says the biggest risk factor for UK stocks right now is that we are not entering a recession

The market is so certain we’re heading into a recession that if we don’t, that’s a real risk to UK stocks,” Roger Lee, head of UK equity strategy at Investec, told CNBC’s “Squawk Box Europe.”

The strategist says the biggest risk factor for UK stocks right now is that we are not entering a recession

LVMH names Louis Vuitton’s new CEO; Arnault’s daughter to head Dior

LVMH Chairman and CEO Bernard Arnault has shaken up the luxury goods empire’s senior leadership team, appointing his daughter Delphine to lead the Christian Dior brand.

Former Dior president Pietro Beccari will replace longtime Louis Vuitton CEO Michael Burke.

“Both are highly respected and logical promotions within the group,” Credit Suisse analyst Natasha Brilliant told Reuters.

LVMH is Europe’s most valuable company at 380 billion euros ($408 billion), Reuters reports, and shares of the companies rose as much as 2% to reach new highs after news of the cabinet change.

– Hannah Ward Glinton

The European Central Bank’s policy maker says there are no signs of unstable inflation expectations

There are no signs that the market’s inflation expectations are unsteady, according to European Central Bank policymaker Robert Holzmann.

The statement was shown on a slide next to a speech he gave at the Euromoney Conference on Central and Eastern Europe.

In a slide referring to recent price increases, Holzmann added that “[p]olicy interest rates will
They must rise significantly more to reach sufficiently restrained levels to ensure a timely return of inflation to the 2% medium-term target.”

– Hannah Ward Glinton

The French economy is holding up better than expected and must avoid a hard landing: Bank of France

Francois Villeroi de Gallau, head of the Bank of France, said on Wednesday that the French economy is resisting better than expected and should be able to avoid a “hard landing”.

“Activity in France is showing better resistance than expected,” Villeroy told Radio Classic.

The Bank of France said that the French economy may have grown slightly in the fourth quarter of last year as business activity increased slightly in the wake of refinery strikes in October and more nuclear plants came back online.

– Hannah Ward Glinton

Shares of British insurer Direct Line fell 29% after a profit warning

Shares of Direct Line fell 29% after the British insurer canceled its final dividend for 2022, putting it on track for its biggest one-day drop ever.

The company said it saw an increase in claims during a period of bad weather in Britain in December, which resulted in the insurer incurring an underwriting loss for the year.

Direct Line said inflationary pressures and supply chain issues made vehicle repairs more expensive, while bouts of unpredictable hot and cold weather spurred demand.

β€œThe Board of Directors recognizes the importance of dividend payments to our shareholders, and continues to take action to restore balance sheet flexibility and dividend capacity as a priority, consistent with our proven track record of delivering returns for shareholders,” Chief Executive Officer Benny James said in a statement.

– Hannah Ward Glinton

CNBC Pro: This global ETF is the only fund that has been gaining every year for the past decade

The only publicly traded stock ETF that has generated a positive return every year for the past decade has been revealed by CNBC Pro.

It is the only fund of nearly 7,000 ETFs worldwide vetted by CNBC Pro to not have one year of negative returns between January 1, 2013, and December 31, 2022.

It also provided investors with a 14% compound annual growth rate over the same period, far more than broader index-tracking funds, according to Koyfin data.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Cryptocurrency is trading higher even as Coinbase announces layoffs

Cryptocurrency rose after the crypto company Coinbase announce It plans to cut 20% of its workforce As they are looking to conserve cash during the cryptocurrency market downturn.

bitcoin It was last trading up 1.55% at $17,459.63 as measured by Coin Metrics. ether 1% profit to $1,337.85.

Other cryptocurrencies such as Kronos and Cardano also made gains.

CEO Brian Armstrong said there was “no way” to reduce expenses and increase its chances of “doing well in every scenario” without reducing headcount.

– Lee Ying Chan, Kate Rooney

CNBC Pro: An Expensive Mistake: Citi Says Stop Hoarding Cash β€” and Reveals Two Areas to Invest In

Investors have had a tough 2022, as stocks and bonds plunged amid broader market turmoil.

While many have resorted to the relative safety of cash, Citi says now is the time to put it to work and names two ways to deploy it for higher returns.

Professional subscribers can Read more here.

– Xavier Ong

Coinbase to lay off 20% of its workforce

Coinbase stock gained 6% After the cryptocurrency exchange announced plans to cut 20% of its workforce Trying to cut costs.

The layoffs will affect 950 jobs and mark the second round of cuts from the company in recent months. Coinbase laid off 18% of its workforce in June in preparation for a potential recession and crypto winter, saying it had grown “too quickly” during the bull market.

Cryptocurrency markets have been under pressure in the wake of the collapse of FTX, one of the industry’s largest players.

Coinbase said the new round of layoffs will cut its operating expenses by 25% for the quarter ending in March, according to a new regulatory filing.

– Kate Rooney, Samantha Sobin

European Markets: Here are the opening calls

European markets are heading for a higher open as investors prepare for more inflation data later this week, with US consumer price data for December due on Thursday.

United kingdom FTSE 100 index The index is expected to open up 26 points at 7720, the German Dax 73 points higher at 14,848 points, France kk Up 29 points at 6898 and Italy FTSE MIB It was up 109 points at 25,474, according to IG data.

Data releases will include Russian inflation data for December and British supermarket Sainsbury’s earnings.

– Holly Ellytt

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