European stocks stagnate; oil and gas sheds 2.6%
European stocks ended the day flat in the previous session, although the oil & gas sector led losses with a 2.6% drop.
Among individual stocks, the UK blank silver was the best performer, gaining 15% after reporting higher profits for 2022 and a £50 million ($59.4 million) share buyback program.
At the other end of the scale, the Scottish oil and gas company Port energy fell 8.5%. In recent days, he said the recently announced extension of the UK windfall tax on energy companies could impact his business.
The new Italian Prime Minister will unveil his budget
The first budget overseen by Italian Prime Minister Giorgia Meloni must be approved by her cabinet on Monday evening, before being sent to parliament.
It is expected to total more than 30 billion euros ($30.8 billion) in expansionary measures, Reuters reported, raising next year’s budget deficit to 4.5% of gross domestic product (GDP) from 3, 4% expected in September.
About 3 billion euros will be found thanks to an exceptional tax on energy profits. The budget also plans to include a tax on home deliveries to help traders, and more than 21 billion euros to help households and businesses with their energy bills.
Stocks mixed as the market opened on Monday
Stocks were mixed Monday morning at the start of a short Thanksgiving holiday trading week.
The Dow Jones Industrial Average jumped as the market opened, trading more than 100 points, or 0.30%, led by Disney. Shares of the entertainment company jumped more than 8% after announcing that former CEO Bob Iger would immediately replace Bob Chapek.
Elsewhere, stocks fell as investors eagerly await more earnings reports and speeches from Federal Reserve leaders this week. The S&P 500 fell 0.20% and the Nasdaq 0.26%.
Stocks in motion: Virgin Money up 14%, Ocado down 7%
Virgin Money shares jumped more than 13% to top the Stoxx 600 in mid-afternoon after the company reported an increase in pre-tax profit for fiscal year 2022 and announced a buyback program. £50 million ($59.4 million) shares.
At the bottom of the European blue chip index, the British online grocer ocado fell more than 7%.
FTX is ‘not idiosyncratic’, says investment advisory firm
MBMG Group’s Paul Gambles says there are more shockwaves ahead for the cryptocurrency industry and warns that liquidity is drying up.
Excess cash in the tech sector needs to be eliminated, says investment management firm
Dan Scott of Vontobel Asset Management talks about layoffs in the tech sector.
October wholesale price inflation in Germany well below expectations
Germany’s producer price index came in at -4.2% month on month in October, the Federal Statistical Office said on Monday, well below Reuters consensus forecast for a 0.9 increase. %.
On an annual basis, wholesale prices rose 34.5%, below expectations of a 41.5% slope.
Stocks in motion: Virgin Money up 13%, IDS down 5%
blank silver shares jumped more than 13% to lead the Stoxx 600 in early trading after the company announced an increase in pre-tax profit for financial year 2022 and announced a £50m share buyback program ($59.4 million).
At the bottom of the index, stocks International Distribution Services – under the name Royal Mail – fell 5% as the company faces new waves of damaging industrial action from workers over the festive period.
Oil prices fall as China faces Covid concerns, Goldman Sachs cuts forecast
Oil prices fell nearly a dollar as China’s Covid concerns grew, with the country seeing the first virus-related deaths recorded since May this year.
Brent futures lost less than a dollar, or 0.9%, to settle at $86.83 a barrel and United States 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 sluggish Chinese demand with growing concerns over Covid and insufficient details of the Group of 7 nations’ latest price cap on Russian oil.
“We believe the market has a right to worry about fundamentals going forward,” economists including Jeffrey Currie said in the note, adding that the potential for further shutdowns in China equates to the latest production cut by China. ‘OPEC+.
— Lee Ying Shan
CNBC Pro: Strategist Says Chinese Tech Stocks Like Alibaba Are “Deeply Undervalued”
The 30% decline in the value of Chinese big tech stocks, such as Ali Babamade them “incredibly cheap”, according to investment bank China Renaissance.
Its head of equities, Andrew Maynard, believes not only that the stock market appears to have bottomed, but also that investors could miss a rally if they remain underweight China.
“Without a shadow of a doubt, being underweight in China is going to cost you dearly in the future,” Maynard said.
CNBC Pro subscribers can learn more here.
Markets are looking for more clues on Fed hikes and the economy in the week ahead
Investors could be a little more cautious in the coming week as stocks look to head into calm trading and the bond market warnings about the recession grow louder.
The Thanksgiving holiday Thursday should mean markets are likely to be quiet Wednesday and Friday. Merchants will monitor Black Friday holiday shopping reports for consumer feedback.
“This really is a week where data addiction is the key word,” said Julian Emanuel, senior managing director of Evercore ISI. “The bias [for stocks] is higher unless the data continues to deteriorate and the Fed remains on its hawkish bias…which has clearly strengthened over the past 48 hours.”
Check out our full deep dive on what to expect in the week ahead here.
—Patti Domm, Tanaya Macheel
CNBC Pro: Morgan Stanley’s Mike Wilson Predicts S&P 500 Bottom, Calls It ‘Tremendous Buying Opportunity’
Morgan Stanley’s chief U.S. equity strategist, Mike Wilson, says we are in the “final stages” of the bear market, but the situation will remain difficult for some time to come.
It predicts when – and at what level – the S&P 500 will reach a “new low”.
CNBC Pro subscribers can learn more here.
European markets: here are the opening calls
European markets are expected to open lower on Monday as investors continue to monitor the uncertain economic outlook.
Britain’s FTSE index is expected to open down 15 points to 7,386, Germany’s DAX down 54 points to 14,378, France’s CAC down 17 points to 6,629 and Italy’s FTSE MIB down 54 points to 24,445, according to IG data.
There are no big wins on Monday. Data releases include German producer prices for October.