Open to close after big week for earnings and monetary policy

Stocks on the move: Adidas down 20%, Leonardo down 7%

German sportswear brand Adidas surged 20 percent to the top of the Stoxx 600 in afternoon trading on Friday after announcing new partnerships following its split from artist Kanye West.

At the other end, Italian aerospace and defense company Leonardo fell 7% after releasing its full-year guidance on Thursday.

– Karen Gilchrist

US stocks open higher

US stocks opened higher on Friday as investors weighed the October jobs report and its potential impact on future interest rate hikes.

The Dow Jones Industrial Average rose 1.1% in early trading while the S&P 500 rose 1.2%. The Nasdaq Composite also rose 1%.

– Karen Gilchrist

Lagarde: If inflation continues to rise, the ECB may tighten policy sooner

The European Central Bank is ready to tighten monetary policy if the current high rate of inflation continues and expectations rise, President Christine Lagarde said in a speech in Estonia on Friday.

“If we see, for example, inflation becoming more persistent and expectations are at risk of collapse, we cannot wait until the full impact of the policy measures is realized,” Lagarde said.

“We need to take further steps until we are confident that inflation will return to target in time.”

– Elliot Smith

Jobs announces ‘nail in the coffin’ of Fed pivot hopes

According to Ron Temple, head of US investment at Lazard Asset Management, Friday’s strong US jobs report was “another nail in the coffin” of expectations for a further easing of monetary policy from the US Federal Reserve.

Also Read :  U.S. bond yields rise as rally fades ahead of jobs data

“The U.S. economy continues to create far more jobs than population growth can accommodate, putting upward pressure on wages and prices,” Temple said.

“The Fed has aggressively attacked the inflation challenge, but will have to stay on the attack as long as labor markets remain resilient.”

– Elliot Smith

U.S. payrolls rose 261,000 in October

The Bank of England’s chief economist warns of ‘hard trade’ for inflation of 2%.

The Bank of England's chief economist warns of 'hard trade' for inflation to reach 2%.

Huw Pill, chief economist at the Bank of England, discusses the central bank’s latest rate hike and the difficult balancing act of monetary policy tightening with economic risks.

Eurozone data deepens fears of a winter recession

The final October reading of the S&P Global PMI (purchasing managers’ index) for the euro zone – seen as a reliable measure of economic health – painted a bleak picture on Friday as inflation rose and fears of a worsening energy crisis weighed on demand. blew up

The final reading of the composite PMI – which covers services and manufacturing – fell to a 23-month low of 47.3 in October, from 48.1 in September, with anything below 50 indicating a contraction. However, the reading was slightly above a preliminary estimate of 47.1.

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– Elliot Smith

Stocks on the move: Andritz down 10%, Leonardo down 6%

Although earnings season is over, third quarter reports remained a key driver of individual share price action in Europe on Friday.

Andritz shares climbed 10.8% by early afternoon to lead the Stoxx 600 after the Austrian industrial group massively beat third-quarter earnings expectations.

Under the index, the Swedish real estate company SBB 8% fell, while the Italian aerospace and defense company Leonardo It fell more than 6% after its third-quarter trading update.

The Bank of England’s chief economist points out that traders are wrong

The Bank of England remains committed to its “overarching objective” of reducing inflation, but expects markets to “recalibrate” their interest rate expectations, Chief Economist Huw Pill told CNBC on Friday.

The central bank raised interest rates by 75 basis points on Thursday, its biggest single hike since 1989, but also warned of a prolonged recession and suggested the market was pricing in too many future rate hikes. is

What we’re looking for, we’re always looking for, is to find that balance that gets us back to our 2% inflation target without creating unnecessary and costly problems on the real side of the economy,” Pill said.

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Read the full story here.

– Elliot Smith

Here are the opening calls

of Britain FTSE 100 11 points higher at 7,235, found in Germany DAX is shown to be around 8 points higher than France’s 13,184 CAC 40 It is expected to move up 12 points to 6,284.

– Elliot Smith

Oil prices rise amid a weakening dollar and speculation of a change in China’s stance on Covid

Oil prices rose due to a drop in the US dollar index and speculation that China is easing its Covid restrictions.

Brent oil futures It added 2% to settle at $96.56 per barrel United States West Texas Intermediate Each barrel increased by 2.21% and became 90.12 dollars.

– Lee Ying Shan

CNBC Pro: This tech stock is a ‘shout buy’ right now: Ritholtz’s Josh Brown

CNBC Pro: Morgan Stanley says this global biotech company could grow 398% in the next year

Analysts at Morgan Stanley think the stock of a global biotech company could rise 398% in the next year.

The company’s latest innovative drug has completed phase 2 trials in Japan and the United States and is awaiting final approval.

Analysts believe it will be a “major contributor to long-term earnings” upon approval.

CNBC Pro subscribers can read more here.

– Ganesh Rao

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