Castellum shares rose 15%
Swedish commercial property company Castellum continued its rally in Thursday afternoon deals, gaining almost 15% to top the Stoxx 600.
It comes after the firm allowed shareholder M2 Asset Management to divest about 40 million shares.
– Karen Gilchrist
US stocks open mixed
US stocks opened mixed on Thursday as a massive rally at the start of the month faded.
The Dow Jones Industrial Average fell 0.3% and the S&P 500 fell 0.2% in early trade. The Nasdaq Composite gained 0.2%.
– Karen Gilchrist
Stocks on the move: Castellum up 7%, Shell down 5%
Shares in Swedish commercial property company Castellum gained 7.3% in midday trading after it allowed shareholder M2 Asset Management to divest about 40 million shares.
At the bottom of the Stoxx 600, Shell shares fell 5% after the oil major issued a third-quarter profit warning.
The asset management company says we are not on the verge of a complete economic collapse
Mathias Heim, Bellecapital’s chief investment officer, discusses the outlook for European markets and the Credit Suisse crisis.
Shell descends on third-quarter profit warning
Shell expects a weaker third quarter due to lower demand.
Ina Fassbender | AFP | Getty Images
Energy giant Shell fell 3% in early trade after it said its third-quarter profit would be “significantly” lower.
It reported record profits in the first half as energy prices rose, but it said a sharp decline in refining margins and weaker revenues from natural gas trading.
Europe’s oil and gas sector was down 0.45% at 9:00 a.m. London time.
– Jenny Reid
Stocks on the move: Zalando up 5%, DS Smith down 3%
Shares in Zalando jumped more than 5% in early trade to lead the Stoxx 600 after the German online retailer struck a new strategic partnership with US sportswear giant Nike.
At the bottom of the European blue chip index, the British packaging company DS Smith lost 3.7%.
– Elliot Smith
CNBC Pro: Goldman Sachs raises crude oil price forecast after ‘OPEC+ embraces West’
According to Goldman Sachs, oil prices will rise by the end of this year.
The Wall Street bank made the call after OPEC+, the powerful group of oil producers, decided to cut production by 2 million barrels per day starting in November.
Analysts at the bank said it would be “unsustainable” for OPEC+ to continue cuts until the end of next year, as oil reserves would run out completely, driving up prices and destroying demand.
CNBC Pro subscribers can read more here.
Barclays: Equities get respite from rates and dollar softening but not ‘out of the woods’ yet
Barclays European equity strategists noted on Wednesday that an initial lull in interest rates and the U.S. dollar offered some respite for “oversold” stocks.
“Amidst signs of financial stress, we may be closer to the threshold of pain for central banks, but we think a dovish turn requires more evidence of weaker growth and a decisive decline in inflation, so we suspect stocks are still out of the woods.” Emmanuel Kau, Head of European Equity Strategy at Barclays said.
Cau suggested the bar for a bounce in the stock market is pretty low given the major indexes are down 25% to 30%, sentiment remains “subdued” and the fourth quarter typically offers “positive seasonality.” However, he suggested that the “growth-policy trade-off” remains elusive.
“While de-risking is a long way off, capitulation can continue without a trigger to ease fears of a hard landing. Sticky high inflation limits central banks’ ability to bounce back and tolerate premature easing in financial conditions, even when a recession looms.”, – Chow said.
“As seen in the UK, credit stress is critical to the response function of central banks and we may have hit their pain point, but markets should not confuse financial stability for monetary stimulus – the end of easy money has far-reaching consequences. It is now looming.”
– Elliot Smith
CNBC Pro: NYU’s Aswath Damodaran calls big tech stocks better bets than ‘traditional safe’ ones
NYU’s Aswath Damodaran likes companies that “can weather a hurricane, a disaster if it happens.”
Sometimes called the “Dean of Valuations,” the New York University finance professor believes big tech stocks can do just that, and he’s revealing his holdings.
Pro subscribers can read more here.
– Xavier Ong
Mizuho says OPEC+ supply cuts confirm ‘bare appetite for price hikes’
The decision by OPEC and its allies to cut output by 2 million barrels per day confirms the group’s “bare desire for price increases, not just support,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank.
A supply cut of about 1 million bpd would have resulted in higher prices without compromising volumes, but a larger cut suggests the alliance is “ignoring the economic challenges of global partners and geo-political alignment with them.” .
“What has been argued as an opportunistic gamble exploiting geopolitical supply disruptions for its own benefit is now in danger of being interpreted as a Russian-aligned insult to the US and its allies (in opposition to Russia’s price cap plans). “, he added.
– Abigail Ng
CNBC Pro: “There’s a lot to buy in China,” says fund manager, naming these two EV stocks
Despite abysmal returns from Chinese stock markets this year, one fund manager believes there are pockets of value in certain ‘core sectors’ even when financial conditions are tight.
Edmund Harris, head of Asia and Emerging Markets investments at Guinness Asset Management, says companies in the electric vehicle sector, factory automation and sustainable energy are likely to outperform their global peers over the next five to 20 years.
He cited two stocks that are likely to benefit from this thread.
CNBC Pro subscribers can read more here.
– Ganesh Rao
Detrick says October could be the start of a bull market rally
Although stocks pulled back on Wednesday, snapping a two-day big winning streak, October could still be the start of a new bull market rally, according to Ryan Detrick, chief market strategist at Carson Group.
“We think this could be the start of a pretty decent-sized year-end rally,” Detrick said during CNBC’s “Closing Bell: Overtime.”
That’s because stocks traditionally improve in October during midterm election years, Detrick said.
He also noted that despite ending the day lower on Sunday, stocks staged a big rally in the afternoon and regained much of their lost ground. According to Detrick, this is a positive thing.
– Carmen Reinicke
CNBC Pro: Time to buy the drug? Some stocks are still trading lower with bigger upside
The start of this week brought a relief rally to stocks. Still, global as well as Wall Street indices are still good from a red year to date.
This could present an opportunity for investors looking for quality stocks and future upside in a volatile environment.
CNBC Pro checked for stocks trading within 10% of their 52-week lows, but have a buy rating from more than 50% of Wall Street analysts who cover them. The stock has an average price target of 20% upside or more, and expectations for earnings growth of at least 10% for 2022.
Here are the emerging stocks. CNBC Pro subscribers can read more here.
– Weizhen Tan
European markets: Here are the opening calls
European shares are headed for a lower open on Wednesday, breaking the positive trend seen in the previous session.
UK’s FTSE is expected to open 27 points lower at 7,059, Germany’s DAX down 59 points at 12,606, France’s CAC 40 down 25 points at 6,005 and Italy’s FTSE MIB down 112 points at 21,426, according to IG data.
Wednesday’s expected declines followed yesterday’s gains in European markets, with the pan-European Stoxx 600 closing 3% higher. Travel and leisure stocks rose 6.1% as all sectors and major bourses entered positive territory to gain.
The British pound rose on Tuesday after dramatic UK government policy, and British sovereign bond yields also fell after last week’s strong sell-off.
Data released on Wednesday included final euro zone PMI data for September and German import and export data for August. Profits come from Tesco and Bang & Olufsen.
– Holly Elliott