European markets close flat as investors assess Fed outlook; DAX up 20% from September
Germany’s DAX up 20% from September’s 2-year low
Germany’s DAX index climbed for a third straight session, hitting a level it last reached on June 9.
It is up 20% from the near two-year low it reached on Sept. 29.
German arms manufacturer Rheinmetall was among the top-performing European stocks Monday, up 8.2% in afternoon trading, after agreeing a takeover of Spain’s Expal systems.
The DAX saw among the biggest rallies as global markets cheered signs of cooling U.S. inflation last week, despite the U.S. Federal Reserve indicating further rate rises are still to come, and suggestions of weakness in the euro zone economy.
— Jenni Reid
U.S. stocks open lower
U.S. stocks opened lower Monday as investors took a breather from a market rally last week.
The Dow Jones Industrial Average opened just below the flatline, while the S&P 500 was 0.6% lower in early deals. The Nasdaq Composite traded down 1.3%.
— Karen Gilchrist
Stocks on the move: Rheinmetall up 7% on Spanish acquisition
We still need to be prepared for higher interest rates, says analyst
Sunil Krishnan, head of multi-asset funds at Aviva Investors, discusses October’s consumer inflation reading.
Euro zone industrial output jumps in September
Euro zone industrial output came in much stronger than expected in September, Eurostat said Monday, rising by 0.9% month-on-month for an annual gain of 4.9%.
Economists polled by Reuters had expected a gain of 0.3% monthly and 2.8% year-on-year. August’s figure was also revised upwards to a monthly increase of 2% from 1.5%.
– Elliot Smith
Stocks on the move: Informa up 6%, Roche down 4%
Shares of Informa climbed more than 6% in early trade to lead the Stoxx 600 after the British publishing company upgraded its 2022 guidance.
At the bottom of the Stoxx 600, Roche fell 4.7% after the Swiss pharmaceutical company’s Alzheimer’s drug candidate failed two long-awaited trials.
– Elliot Smith
Bitcoin falls below $16,000 to lowest since Nov. 2020 as FTX saga continues
CNBC Pro: One retail stock just hit an all-time high — and Bank of America thinks it’s got further to go
This year’s bear market has wiped trillions of dollars in market cap off the stock market, but a few stocks have outperformed significantly during this period.
Bank of America identified three retail stocks that bucked the trend, and says one remains a buy.
Pro subscribers can read more here.
— Zavier Ong
CNBC Pro: UBS says disinflation is on the way — and shares 8 global stocks to play it
Swiss bank UBS has forecasted a “sharp” disinflation in 2023.
It said weak growth alongside “mechanical” indicators, such as easing supply chain bottlenecks and rising goods inventories, would see prices fall next year.
The investment bank screened for stocks that would benefit from such an environment.
CNBC Pro subscribers can read more about their forecasts, and eight stocks we’ve highlighted from their list.
— Ganesh Rao
European markets: Here are the opening calls
European markets are set to open in positive territory on Monday with global markets still seeing a boost from last week’s U.S. inflation figures, which showed prices had risen less than expected in October.
The U.K.’s FTSE index is expected to open 13 points higher at 7,338, Germany’s DAX up 45 points at 14,283, France’s CAC up 30 points at 6,627 and Italy’s FTSE MIB down 136 points at 24,459, according to data from IG.
Data releases include euro zone industrial production figures for September. There are no major earnings.
— Holly Ellyatt