German inflation in October fell short of expectations
Germany’s Producer Price Index rose -4.2% month-on-month in October, the accounting office said on Monday, below the Reuters consensus of a 0.9% increase.
For the year, prices rose 34.5%, below expectations of 41.5%.
– Elliot Smith
Stocks moving: Virgin Money up 13%, IDS down 5%
Virgin Money shares jumped more than 13% to lead the Stoxx 600 in early trading after the company reported an increase in pre-tax profits for 2022 and announced a $50 million ($59.4 million) buyback program.
Under the index, sections International Distribution Services – trading as Royal Mail – fell 5% as the company faces another wave of industrial action from workers over the holiday period.
Oil prices fall as China faces Covid concerns, Goldman Sachs cuts forecast
Oil prices fell by nearly a dollar as concerns over Covid in China rose as the country saw its first virus-related death recorded since May this year.
Brent crude futures shed less than a dollar, or 0.9%, to settle at $86.83 a barrel and US West Texas Intermediate Futures fell 1.09% to $79.21 a barrel.
Goldman Sachs cut its forecast for Brent oil by $10 to $100 per barrel in the fourth quarter of 2022, citing China’s growing demand for Covid concerns and insufficient data on the latest price of the Group of 7 countries on Russian oil.
“We believe the market is right to be concerned about future demand,” economists including Jeffrey Currie said in the note, adding that the possibility of another shutdown in China is similar to OPEC+’s recent output.
— Lee Ying Shan
CNBC Pro: Strategist Says China’s Chinese Stocks, Like Alibaba, ‘Very Undervalued’
This year a 30% decline in the price of Chinese Big Tech stocks, such as Alibabait has made them “very affordable,” according to the Chinese Renaissance bank.
Its chief financial officer, Andrew Maynard, not only believes that the stock market appears to be bearish, but that investors may miss the rally if they remain short on China.
“Without a doubt, being underdogs in China will cost you in the future,” Maynard said.
CNBC Pro subscribers can read more here.
– Ganesh Rao
Markets are looking for more clues on the Fed’s actions and the economy next week
Investors are likely to be more cautious in the week ahead, with stocks looking for signs of calmer business and market warnings of a recession.
The Thanksgiving holiday on Thursday should mean markets will be quiet on Wednesday and Friday. Marketers will monitor shopping reports during the Black Friday holiday to respond to consumers.
“It’s a week where data confidence is the key word,” said Julian Emanuel, managing director at Evercore ISI. “Partiality [for stocks] is higher unless the data continues to deteriorate and the Fed remains on its high…
Check out our full in-depth look at what to expect in the coming week here.
—Patti Domm, Tanaya Macheel
CNBC Pro: Morgan Stanley’s Mike Wilson predicts a bottom for the S&P 500, calls it a “buying opportunity”
Morgan Stanley’s chief US equity strategist Mike Wilson says we are in the “final stages” of a bear market, but things will be tough for a while.
He predicts when — and at what level — the S&P 500 will hit “new lows.”
CNBC Pro subscribers can read more here.
– Weizhen Tan
European markets: Here are the opening calls
European markets are expected to open lower on Monday as investors continue to monitor the economy.
The UK’s FTSE index is expected to open 15 points lower at 7,386, Germany’s DAX down 54 points at 14,378, France’s CAC down 17 points at 6,629 and Italy’s FTSE MIB down 54 at 24,445, according to data from IG .
No major earnings on Monday. The release includes German prices for October.
– Holly Elliott
