European markets record a third session of gains
European markets closed higher for a third consecutive session, with the Stoxx 600 the index gaining 0.5% on Thursday.
The FTSE 100 remained stable while the French CAC 40 climbed 0.4% and the German DAX 0.8%. By sector, gains were led by the chemicals sector, up 1.1%.
The best performing stock was German property company LEG Immobilien, which rose 6.7% after Morgan Stanley put it “overweight”.
Global markets were encouraged by indications that the US Federal Reserve is looking to slow the pace of interest rate hikes, while in Europe, this week’s PMI data showed that slowing business in the zone euro slowed slightly.
German real estate market will slow but see overvaluations: Central bank
A new report from the German central bank predicts a slowdown but no significant correction in the real estate market.
Claudia Buch, vice-president of the Bundesbank, told CNBC: “We are seeing a slowdown in the growth of residential property prices, but it is not that the overall dynamic has reversed. So we still have market overvaluations.
Moving stocks: LEG Immobilien up 6%, Bridgepoint up 5%
Shares of LEG Immobilien soared 6.5% to top the Stoxx 600 by mid-afternoon after Morgan Stanley moved the German property company’s shares from “overweight” to “equally weighted”.
British private investment company Bridgepoint Group increased by more than 5%.
Turkey cuts rates by 150 basis points and ends an easing cycle
Turkey’s central bank on Thursday cut interest rates by 150 basis points to 9% and decided to end its monetary policy easing cycle, citing heightened inflation risks.
The CBRT [Central Bank of the Republic of Turkey] has been under constant pressure from President Recep Tayyip Erdogan to continue cutting rates despite soaring inflation, which reached 85.5% year-on-year in October, as food and energy continued to soar.
“Given the growing risks to global demand, the Committee assessed the current policy rate as adequate and decided to end the rate cut cycle that began in August,” the central bank said in a statement.
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German economic sentiment improved in November, says Ifo Institute
The Ifo Institute’s German business climate index rose to 86.3 points in November from 84.5 in October.
“While companies were somewhat less satisfied with their current business, pessimism about the coming months has eased sharply. The recession may prove less severe than many had anticipated,” the chairman said. Ifo, Clemens Fuest.
The index climbed significantly in the manufacturing sector, where companies were less pessimistic about the future but rated their current situation as worse, Fuest said.
“The number of new orders fell again. Although uncertainty about the future development of the business remains high, it has fallen a little. But in energy-intensive industries, uncertainty has increased further,” did he declare.
British pound rises above $1.20 as dollar weakens on weaker Fed hike expectations
Sterling broke above a key $1.20 level on Wednesday evening as the American dollars softened in response to weak PMI (Purchasing Managers Index) data and minutes from the last Federal Reserve policy meeting.
The pound gained another 0.3% in early trading on Thursday to trade at around $1.209, while the euro and the japanese yen also gained ground against the retreat of the greenback.
Bulgari says wealthier consumers continue to spend despite growing fears of recession
Jean Christophe-Babin of Italian luxury fashion house Bulgari Group says that while demand for entry-level products tends to contract during recessions, high-end consumers still have disposable income.
Stocks in motion: Elekta down 4%, UMG up 3%
Stock price movement was subdued across the European blue chip index on Thursday morning.
Swedish manufacturer of radiotherapy equipment Elekta slipped more than 4% to the Stoxx 600 low after missing second-quarter earnings expectations.
At the top of the index, Universal Music Group increased by 3.3%.
CNBC Pro: Betting against UK supermarket, short seller expects share price to crash nearly 50%
There is more pain ahead for investors in a UK supermarket business if a short seller prediction comes true.
The hedge fund currently holds a bear bet worth £32.6m and expects the grocer’s shares to fall 44%.
The fund’s chief investment officer also believes the supermarket will raise new capital by diluting shareholders year after year to stay afloat in a tough environment.
CNBC Pro subscribers can learn more here.
CNBC Pro: Asset manager says investors need to buy this large-cap stock now
There’s one large-cap stock investors need to buy right now, according to Rob Luna, chief investment strategist at asset manager Surevest.
He calls his CEO an “important visionary”.
Although Luna picked the only large-cap stock, he generally advised investors to reassign to smaller names, naming two stocks he called “best of breed.”
CNBC Pro subscribers can learn more here.
European markets: here are the opening calls
European markets head for a higher open on Tuesday as investors in the region appear to ignore concerns from their US and Asia-Pacific counterparts over China’s tightening of Covid restrictions, which continue to pressure the economy. production.
Britain’s FTSE is expected to open 27 points higher at 7,407, Germany’s DAX up 33 points at 14,419, France’s CAC up 20 points at 6,653 and Italy’s FTSE MIB up 70 points at 24 433, according to data from IG.
The data releases include preliminary consumer confidence data for the Eurozone in November.