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European stocks close 0.4% higher as recession optimism rises

of Europe Stoxx 600 The index ended the session 0.4% higher, regaining much of the ground lost on Tuesday and returning near its eight-month high.

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

Germany’s DAX index rose 1.2% to its highest level since February amid growing optimism about its manufacturing and growth prospects for the year.

– Jenny Reid

Stocks on the move: Waker Chem up 9%, Aroundtown up 8%

German Chemical Company Wacker Semi Up 8.8% in afternoon trade, UBS analysts said next quarter should beat average analyst estimates and reiterated a “buy” rating on the stock.

It was joined at the top of the Stoxx 600 index by the European real estate developer Around townThat’s up 8% to 21.5% so far in 2023 – though it’s halved on a year-over-year basis.

UK insurer Direct Line plunged 24% after announcing it was delaying its final dividend until 2022. December claims surged due to bad weather, inflation and supply chain issues, leading to an underwriting loss for the year.

– Jenny Reid

Long-term UK bond yields fall 15 basis points

Long-term UK government bond yields fell sharply, hitting their lowest level since December 19.

results on 10-year, 20-year And 30 years of gilts All were down 15 basis points by 2:15 pm London time.

Yields move inversely with prices.

– Jenny Reid

The biggest risk factor for UK stocks right now is that we’re not headed for recession, strategist says

“The market is very solid, we’re headed for a recession, and if we don’t, that’s a real risk for UK equities,” Roger Lee, head of UK equity strategy at Investec, told CNBC’s “Squawk Box Europe.”

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LVMH Names New Louis Vuitton CEO; Arnold’s daughter as head of Dior

LVMH Chairman and CEO Bernard Arnold has reshuffled the top leadership team at his luxury goods empire and named his daughter Delphine to lead the Christian Dior brand.

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

“Both are well-respected; logical promotions within the group,” Credit Suisse analyst Natasha Brilliant told Reuters.

LVMH is Europe’s most valuable conglomerate at 380 billion euros ($408 billion), Reuters reports, and the company’s shares rose as much as 2%, hitting new highs on news of the leadership restructuring.

– Hannah Ward-Glenton

ECB policymaker says there are no signs of easing inflation expectations

According to European Central Bank policymaker Robert Holzmann, there are no signs of easing market expectations on inflation.

The report was featured in a slide accompanying a speech at the Euromoney conference on Central and Eastern Europe.

In a slide addressing the recent rate hike, Holzman added “[p]olicy interest rates
Inflation will need to rise significantly further to achieve sufficiently restrained levels to ensure a timely return to the 2% medium-term target.”

– Hannah Ward-Glenton

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

The French economy is resisting better than expected and can avoid a “hard landing,” Bank of France President Francois Villeroy de Gallhau said on Wednesday.

“The activity in France is better than the expected opposition,” Villeroy told Radio Classic.

The Bank of France said the French economy may have grown slightly in the final quarter of last year as business activity picked up following refinery strikes in October and more nuclear plants coming back online.

– Hannah Ward-Glenton

Shares in British insurer Direct Line fell 29% after the profit warning

Shares in Direct Line fell 29% after the British insurer scrapped its final dividend for 2022.

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The company said claims surged during the period of bad weather in Britain in December, which led the insurer to an underwriting loss for the year.

Inflationary pressures and supply chain issues have made auto repairs more expensive, while unexpected hot and cold weather has boosted demand, Direct Line said.

“The board recognizes the importance of dividends to our shareholders and continues to take steps to restore balance sheet resilience and dividend capacity as a priority, consistent with our track record of delivering shareholder returns,” CEO Penny James said in a statement.

– Hannah Ward-Glenton

CNBC Pro: This is the only global ETF to post gains every year for the past decade.

The only stock ETF with positive returns every year over the past decade has been revealed by CNBC Pro.

Jan. It is the only fund out of nearly 7,000 stock ETFs globally screened by CNBC Pro to not post a negative return for a year between December 1, 2013 and December 31, 2022.

It has also delivered a 14% compound annual growth rate to investors over the same period, significantly higher than the broader index-tracking funds, according to Koyfin data.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Cryptocurrencies trade higher even as Coinbase announces layoffs

Cryptocurrencies soared after the crypto company Coinbase declared Plans to cut 20% workforce This protects money during crypto market downturns.

Bitcoin Currency gauges last traded up 1.55% at $17,459.63. Ether Up 1% to $1,337.85.

Other digital currencies such as Kronos and Cardano also made progress.

CEO Brian Armstrong said there was “no way” to cut costs and increase opportunities to “do better in every situation”.

– Lee Ying Shan, Kate Rooney

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CNBC Pro: ‘A Costly Mistake: Citi Stops Hoarding Cash – Reveals Two Areas To Invest’

Investors endured a tough 2022 as stocks and bonds tumbled amid broader market turmoil.

While many take refuge in the relative safety of cash, Citi says now is the time to put it to work, and points to two ways to make more money.

Pro subscribers can Read more here.

– Javier Ong

Coinbase to lay off 20% of employees

Shares of Coinbase rose 6% After the crypto exchange operator announced plans to cut 20% of its workforce In an effort to reduce 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 to prepare for a potential recession and winter for crypto, which it said grew “very quickly” during the bull market.

Crypto markets have come under pressure following the collapse of one of the industry’s largest operators, FTX.

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

– Kate Rooney, Samantha Subin

European markets: Here are the opening calls

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

of England FTSE 100 The index is expected to open 26 points higher at 7,720, Germany DAX France rose 73 points to 14,848 CAC Italy, up 29 points to 6,898 FTSE MIB It rose 109 points to 25,474, according to IG data.

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

– Holly Elliott

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