European markets close higher on rising inflation data

Stocks on the move: Ocado up 7%, Avanza down 7%

Shares of the British online grocer Ocado Evercore rose more than 7% to lead the Stoxx 600 in the afternoon after ISI raised its price target for the stock.

At the end of the index is Sweden Avanza Bank fell 7% after weak monthly data for December.

– Elliot Smith

The UK will be the worst performer among major advanced economies in 2023, the strategist says

Seema Shah, chief strategist at Principal Global Investors, expects a tough start to 2023 for the UK as household savings decline and the effects of rising interest rates are felt.

Inflation unexpectedly slows in France

The skyline from the Arc de Triomphe in Paris, France.

Bloomberg | Bloomberg | Getty Images

Inflation in France fell to 6.7% in December from a record high of 7.1% in the previous month, according to preliminary figures released on Wednesday morning.

Economists polled by Reuters had forecast year-on-year adjusted inflation, adjusted for euro zone comparisons, at 7.2%.

The most significant decline was in the energy sector, where prices rose 15.1% annually, up from 18.4% in November.

This follows a stronger-than-expected slowdown in inflation in Germany, which reported on Tuesday that HICP fell to 9.6% from 11.3%; In Spain, it decreased from 6.7% to 5.8% last week.

Analysts are looking for signs that inflation has peaked in the eurozone’s main economies; and whether it will affect the European Central Bank, which previously said interest rates should rise “significantly”.

ING analysts said the path to significantly lower inflation rates will not be easy and will depend on agricultural issues affecting energy markets and food prices.

“[Germany’s] the inflation figures are not a relief, but a reminder that inflation in the eurozone is still largely an energy price phenomenon,” they said. “The ECB cannot and will not base its policy decisions on highly volatile energy prices.”

Italy will report inflation figures on Thursday, followed by flash estimates for the Eurozone on Friday.

– Jenny Reid

Annual inflation in Switzerland will be 2.8% in 2022

According to the Swiss Federal Statistical Office today, consumer prices in Switzerland increased by 2.8% year-on-year and decreased by 0.2% in December.

It found that Swiss inflation averaged 2.8% in 2022 from 0.6% in 2021. He attributed the annual increase to increases in the cost of petroleum products, gas, car and house rent, which offset the decline in the prices of medicines, fixed and mobile communications.

Stocks on the move: BKW up 4%, Tenaris down 5%

Swiss energy supplier BKW It rose 6% in early trade to lead the Stoxx 600 after forecasting an “outstanding” full-year result for 2022.

Italian steel pipe manufacturer Tenaris The European blue-chip index fell 5%.

– Elliot Smith

CNBC Pro: Analysts see these 10 global renewable energy stocks rising despite high rates, and one suggests a 50% upside

Rising energy costs have spurred investment in renewable energy around the world.

Swiss investment bank UBS has named 10 prominent renewable energy players that are taking advantage of this trend and are poised to outperform over the next year.

CNBC Pro subscribers can read more here.

– Ganesh Rao

CNBC Pro: Wall Street is bullish on the chip giant, with Morgan Stanley giving it a 55% upside

The once-hot chip sector suffered in 2022, but Wall Street is more bullish on semiconductor stocks for next year.

Recently, several pro investors have called for a longer-term view of the sector, given the importance of chips in several key global trends.

Analysts have singled out one stock they are particularly bullish on, citing its earnings potential and future profitability.

CNBC Pro subscribers can read more here.

– Weizhen Tan

Goldman Sachs believes that the US will avoid recession in 2023

Goldman Sachs has a non-consensus forecast for the US economy in 2023.

“Our economists continue to believe that the US will avoid recession as the Fed successfully eases the economy,” analysts wrote on Tuesday.

“This outside-consensus forecast partly reflects our view that the period of below-potential growth is sufficient to gradually rebalance the labor market and reduce wage and price pressures,” the note said. “But it also reflects our analysis, which suggests that fiscal and monetary policy tightening will ease sharply next year, contrary to the consensus view that the lagged effects of rate hikes will lead to a recession in 2023.”

In addition, the bank today raised its GDP growth forecast for 2Q22 by 10 bp to +2.1%.

“The relationship between the resilience of the U.S. economy in 2022 and the decline experienced by stocks has been the main story of the past year,” Goldman said. “And the continuation of that relationship, or the economy matching the market’s downturn, or the market rebounding after a mild economic downturn could be at least part of the 2023 story.”

– Carmen Reinicke

CNBC Pro screens for low-volatility stocks with fears of a slide ahead

Stock markets endured a terrible 2022 as major indexes posted their worst performance in more than a decade.

As market pundits warn investors of tough times ahead, CNBC Pro used FactSet data to examine low-volatility stocks that not only beat the market in 2022, but are expected to rise further this year.

Pro subscribers can read more here.

– Xavier Ong

European markets: Here are the opening calls

European markets headed for a higher open Wednesday as investors awaited the latest minutes from the US Federal Reserve.

of Great Britain FTSE 100 The index is expected to open at 7,570, increasing by 11 points in Germany DAX 28 places up 14,227, France CAC Italy rose 9 places to 6,643 FTSE MIB Up 31 points to 24,449, according to IG data.

Markets in Europe closed higher on Tuesday after Germany published lower-than-expected inflation figures for December, falling to 9.6% year-on-year. Inflation figures from France are due on Wednesday.

– Holly Elliott

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