European markets open to close, investors focus on the Fed’s next move

The world’s largest barometer company Maersk, a barometer for global trade, warns of ‘dark clouds on the horizon’.

Maersk, the world’s largest container shipping company, posted record profits for the third quarter on Wednesday on the back of higher ocean freight rates, but pointed to weaker demand.

The Danish giant, widely seen as a barometer for global trade, reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $10.9 billion for the quarter, above consensus analysts’ forecasts of $9.8 billion and at compared to the same period, it increased by 60%. years ago

CEO Søren Skou said the “extraordinary results” this year were driven by a steady increase in sea freight rates, but said it was clear they had reached a peak and warned of “dark clouds on the horizon.”

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– Elliot Smith

Stocks on the move: Straumann 4%, Demand fell 11%

Corporate earnings remain a key driver of individual share price activity in Europe.

Danish hearing healthcare company request The Stoxx 600 fell more than 11% in early trading after the third-quarter earnings report.

At the top of the index, Swiss dental equipment firm Straumann gained 4 percent after quarterly results.

Bank of England set for biggest rate hike in 33 years, but economists expect rate hike

Oil futures rose after the industry report of a decline in US crude stockpiles

Oil futures rose on Wednesday after industry reports showed a decline in US crude inventories last week, Reuters reported, citing figures from the American Petroleum Institute on Tuesday.

Brent oil futures Each barrel increased by 1.31 dollars or 1.46% and became 95.87 dollars. United States West Texas Intermediate Each barrel increased by 1.28% and became 89.67 dollars.

– Lee Ying Shan

CNBC Pro: Buy this bus to play big pent-up demand in the US, fund manager says

According to fund manager Steven Glass, there is currently a huge demand for cars in the US and China.

He named one auto stock to cash in on, which he said has a “very well-managed” balance sheet and a price-to-earnings ratio in the low 20s.

Pro subscribers can read more here.

– Zavier Ong

A Fed pivot is far away, says New York Life’s Goodwin

According to Lauren Goodwin, economist and portfolio strategist at New York Life Investments, investors may be getting a little too excited about potential changes from the Federal Reserve.

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Goodwin said in a note that he expected the Fed to hike by 0.75 percent on Wednesday and half a point in December, but the slowdown should not be seen as the start of a major shift from the central bank.

Goodwin said in an article, “A Fed stop is not the same as a pivot. Of course, worsening economic and credit conditions could cause the Fed to pivot slightly at some point, but a full swing into favorable territory over the next year is highly unlikely.” possible,” Goodwin said. note

Goodwin noted that the rise in prime rates should now reflect its impact across the broader economy, rather than just housing. However, the Fed will need several months of data to decide whether to change course.

“At this point, with inflation as surprising as ever, the Fed will want clear signs of a slowdown in wage growth before turning around. A recession should be considered a case in point rather than a threat,” Goodwin said.

– Jesse Pound

CNBC Pro: Goldman’s Currie reveals ‘best’ view against inflation, rate hikes and geopolitical risks

Goldman’s Jeff Currie says there is an investment that can protect investors from rising interest rates, inflation and geopolitical risk.

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Currie, global head of commodities research at Goldman Sachs, said it has upside potential of 20-30% in the short term, with upside risks to the price target.

CNBC Pro subscribers can read more here.

– Ganesh Rao

European Markets: Here are the opening calls

European markets are eyeing a positive start to trading on Wednesday as investors brace for the latest monetary policy decision from the US Federal Reserve.

Many analysts expect the meeting to result in a 75 basis point interest rate hike. Investors will also be watching the central bank’s statement and Fed Chairman Jerome Powell’s press conference for signs of slowing the pace of tightening.

According to IG data, London’s FTSE index is expected to rise 21 points to 7,115, Germany’s DAX to rise 84 points to 13,422, France’s CAC to rise 36 points to 6,364 and Italy’s FTSE MIB to rise 119 points to 22,771. to be

Profits will come from Next, Aston Martin Lagonda, GSK, Metro and Maersk. The unemployment data in Germany for the month of October will also be revealed.

– Holly Elliott

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