Stocks moving: SBB up 8%, Rational down 7%
Swedish real estate company SBB EduCo saw its shares rise 8% by mid-afternoon to lead the Stoxx 600 after it released pro-forma earnings guidance for 2023 after its education division divested.
At the bottom of the index, the German kitchen appliance manufacturer Rational fell by 7%.
– Elliot Smith
‘Pretty bold’ to say no bad news on US earnings in 2023: Analyst
Ben Jones, director of macro research at Invesco, says there is “more bad news” in Europe.
The investment firm says the technology has “a lot of upside.”
Per Roman, co-founder and managing partner of GP Bullhound, discusses the outlook for the tech sector and says “high political risk is a real wake-up call for the tech industry.”
S&P Global says the Eurozone economy is likely headed for a mild recession
S&P Global’s final PMI (purchasing managers’ index) for the euro zone fell to 47.8 in November from a 21-month low of 47.3 in October, falling below the 50 mark that separates expansion from contraction.
“The fifth straight monthly decline signaled by the PMI raises the possibility that the euro zone is slipping into recession,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
However, the slowing rate of contraction projects the region’s GDP to fall by just 0.2%, Williamson predicts.
– Elliot Smith
S&P Global says the UK economy has faced its “toughest year” since the financial crisis
The UK services sector shrank for the second straight month in November, according to S&P Global’s services PMI (purchasing managers’ index) reading on Monday.
The services sector PMI remained at 48.2, a 21-month low in October and below the 50 mark that separates expansion from contraction.
Chris Williamson, chief business economist at S&P Global, PMIs point to a growing recession risk in the UK.
“The change of government and its new economic policies may have helped to absorb some of the volatility in the financial market after the ‘mini-budget’ in September, but the economic picture remains stubbornly unchanged,” Williamson said.
“The overall pace of economic contraction remained stable compared to October, with GDP falling by 0.4% quarter-on-quarter. So this is the worst hit the UK economy has faced since the global financial crisis pandemic.”
– Elliot Smith
Stocks on the move: Grifols rose 6%, Rational fell 5%
stocks Grifols Morgan Stanley rose more than 6% in early trade to lead the Stoxx 600 after Morgan Stanley upgraded shares of the Spanish pharmaceutical company to “overweight” from “equal weight.”
At the bottom of the index, the German kitchen appliance manufacturer Rational fell more than 5%.
– Elliot Smith
The CEO of “Vodafone” resigned
Vodafone said Monday that CEO Nick Read will step down at the end of the year, with Chief Financial Officer Margherita Della Valle serving as an interim replacement.
Read’s tenure has seen the British telecoms firm sell assets to focus on Europe and Africa and develop its towers infrastructure division, but he has failed to deliver the share price revival that investors have been calling for.
stocks Vodafone rose 1.8% shortly after the market opened.
Read more.
– Jenny Reid
Hong Kong carriers: Chinese tech firms and reopening stocks bounce
Hong Kong-listed Chinese technology, consumer and travel-related firms saw sharp gains in early trade after some Chinese cities saw some easing of Covid restrictions.
Tech heavyweights Tencent rose 5.5%, Meituan 3.5%, Alibaba 4.72% and Xiaomi 7.31%. EV stocks like Li Auto gained 9.19% and Nio gained 11.5%.
Meanwhile, Hong Kong-listed casino stocks also rose, with MGM China up 12.44%, Wynn Macau up 12.35% and Sands China up 7.5%. Galaxy Entertainment rose 3.61% and SJM Holdings It increased by 4.82%.
Hotpot restaurant operator Haidilao It’s up 15% and airline stocks are up too. China Southern Airlines and China Eastern Airlines and each increased by more than 5% Weather China earned 4%.
The broader Hang Seng index rose 3.21%.
– Abigail Ng, Jihye Lee
Oil futures up 2% after OPEC+ held steady and China eases some Covid restrictions
CNBC Pro: Goldman Sachs upgrades this global tech giant, saying the stock could rise as much as 90%
Goldman Sachs sees an opportunity in the “upward trend” in electric cars.
The trend will accelerate as EVs become “more technology-based” and simpler to build, Goldman analysts said in a Dec. 1 report.
That would benefit one global stock, Goldman said, giving the stock as much as 90% upside in a bullish scenario for the firm.
CNBC Pro subscribers can read more here.
– Weizhen Tan
European markets: Here are the opening calls
European markets are headed for a flat open on Monday as investors await more regional data.
According to IG, the UK’s FTSE index is expected to open down 4 points to 7,554, Germany’s DAX index to increase by 2 points to 14,531, France’s CAC index to decrease by 2 points to 6,740, and Italy’s FTSE MIB to decrease by 14 points to 24,671.
Data releases include euro zone retail sales for October as well as final purchasing managers’ index data for November. No big gain.
– Holly Elliott