European markets open to close, recession risks, data, earnings

CNBC Pro: Close to retirement? Here’s how to distribute your portfolio now, according to the pros

Despite the volatility in the markets, money managers say it’s important to stay invested as you approach retirement.

But how should the funds be distributed in view of turbulent markets, a shorter investment horizon and the liquidity needs of pensioners?

CNBC Pro asks the experts for their opinion.

Pro subscribers can read more here.

— Wheat Tan

British pound strengthens after change of course

Sterling was higher on Monday morning in Asia after the UK government made further rate changes late last week. The pound was last up 0.56% at $1.1233.

CNBC Pro: As market volatility continues, Wall Street analysts advise selling these stocks

Global equities have taken a hit this year and major indices remain deep in negative territory.

As investors weigh whether to sell or stay invested, CNBC Pro reviewed nearly 1,500 large and mid-cap global stocks and found a number of large companies with sell or underweight ratings.

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CNBC Pro subscribers can read more here.

— Ganesh Rao

China’s central bank leaves medium-term interest rates unchanged

The People’s Bank of China extended its MLF (Medium Term Lending Facility) loans and left its interest rate unchanged at 2.75%, according to a statement on its website.

The central bank announced it would keep the one-year interest rate unchanged for a second month and injected 500 billion yuan ($70 billion) through the MLF.

A Reuters poll expected no change in the MLF rate and a partial extension of credit from the central bank.

– Jihye Lee

CNBC Pro: Morgan Stanley’s Mike Wilson points to a key risk to earnings — and names the stocks to avoid

Morgan Stanley’s US equities team, led by Michelle Weaver and Mike Wilson, says a material risk to earnings is looming.

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The investment bank named several stocks that it believes will be hit the hardest over the next 3-6 months and could experience downside moves in their stock prices over the same period.

Pro subscribers can read more here.

– Zavier Ong

European Markets: Here are the opening calls

European markets are heading for a lower open on Thursday as investors around the world brace for the latest US inflation data.

Britain’s FTSE index is expected to open 12 points lower at 6,812, Germany’s DAX 41 points lower at 12,150, France’s CAC 23 points lower at 5,803 and Italy’s FTSE MIB 40 points lower at 20,324, according to data from IG.

The lower open in Europe comes amid mixed global sentiment ahead of recent US inflation. US stock futures edged higher overnight while Asia-Pacific markets were mixed as investors waited for the data.

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Dow Jones consensus estimates show CPI up 0.3% in September versus 0.1% in August. That would bring the annual pace of inflation to 8.1% from 8.3%.

A rise in CPI would also follow higher-than-expected producer price data, data showed on Wednesday. The US producer price index, a measure of final demand wholesale prices, rose 0.4% in September, ahead of the consensus estimate of 0.2%, according to the Dow Jones.

Markets processed minutes of the Federal Reserve’s September meeting, released on Wednesday, which showed the central bank is expected to keep raising interest rates until it sees inflation falling.

One comment led some to think that the Fed might instead slow, if not reverse, rate hikes if the financial market turmoil continues.

On the data front in Europe, Germany releases final inflation data for September.

— Holly Ellyatt


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