European markets open to close, stock moves, news and data

German wholesale inflation in October well below expectations

Germany’s Producer Price Index came in at -4.2% month-on-month in October, the federal statistics office said on Monday, well below the Reuters consensus forecast for a 0.9% increase.

On an annual basis, wholesale prices were up 34.5%, below expectations of a biased 41.5%.

– Elliot Smith

Stocks moving: Virgin Money up 13%, IDS down 5%

Money of the Maiden shares jumped more than 13% to lead the Stoxx 600 in early trade after the company reported a rise in pre-tax profit for the 2022 fiscal year and announced a buyback program of £50 million ($59.4 million).

At the bottom of the index, shares International Distribution Services — trading as Royal Mail — fell 5% as the company faces another wave of damaging industrial action from workers over the holiday season.

Oil prices fall as China faces Covid concerns, Goldman Sachs cuts forecast

Oil prices fell by almost a dollar as Covid concerns rose in China with the nation seeing the first virus-related deaths recorded since May this year.

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Brent crude futures will lose less than a dollar, or 0.9%, to stand 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 a barrel for the fourth quarter of 2022, citing demand from China with rising concerns about Covid and insufficient data from the Group of 7’s latest price limit on Russian oil.

“We believe the market is right to be concerned about initial fundamentals,” economists including Jeffrey Currie said in the note, adding to the potential for further lockdowns in China equivalent to the latest production cut OPEC +.

— Lee Ying Shan

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, are ‘grossly undervalued’

The value of China’s Big Tech stocks, for example, has fallen by 30% this year Alibabathey did “extremely cheap,” according to investment bank China Renaissance.

Its head of equity, Andrew Maynard, not only believes that the stock market appears to be suffering, but also that investors could miss out on a rally if they remain overweight in China.

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“Without a shadow of a doubt, being overweight in China will cost you in the future,” Maynard said.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Markets are watching for more clues about Fed hikes and the economy in the coming week

Investors may be a little more cautious in the week ahead, with stocks looking for direction in quiet trading and bond market warnings of an economic recession getting louder.

The Thanksgiving holiday on Thursday should mean the markets are likely to be quiet on Wednesday and Friday. Traders will be monitoring reports on Black Friday holiday shopping for consumer feedback.

“It’s really a week where data reliance is the key phrase,” said Julian Emanuel, senior managing director at Evercore ISI. “The bias [for stocks] higher unless data continues to deteriorate and the Fed remains on its hawkish side… which has clearly strengthened over the past 48 hours.”

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Check out our full in-depth dive into what to expect over the coming week here.

— Patti Domm, Tanaya Machel

CNBC Pro: Morgan Stanley’s Mike Wilson predicts S&P 500 bottom, calls it a ‘great buying opportunity’

Morgan Stanley’s Chief Equity Strategist, Mike Wilson, says we are in the “final stages” of the bear market, but the situation will remain challenging for a while longer.

It predicts when—and at what level—the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

European Markets: These are the initial calls

European markets are set to open lower on Monday as investors continue to monitor the uncertain economic outlook.

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 points at 24,445, according to data from IG.

There are no big earnings on Monday. Releases include German producer price data for October.

— Holly Elliott


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