End of a winning week on dovish Fed bets
European markets muted but mark sixth week of gains
Europe’s Stoxx 600 index closed flat on Friday, rounding off an upbeat week that saw it surpass a three-month high and secure a sixth week of gains.
The main German and French bourses were flat, as the U.K.’s FTSE 100 gained 0.3%.
Expectations of slower Federal Reserve rate hikes and economic data suggesting that coming recessions in Germany and the wider euro zone may be shallow have cheered markets.
That was despite the negative performance of stocks such as Credit Suisse, which faces a major restructuring after several scandals.
— Jenni Reid
Stocks open little changed ahead of short trading day
Stocks opened little changed on Friday ahead of the short trading day as Wall Street looks to close out a winning holiday week.
The Dow Jones Industrial Average rose 19 points, or 0.09%. The S&P 500 lost 0.03% and the Nasdaq Composite slipped 0.48%, weighed down by shares of Activision Blizzard, which fell nearly 4% on news that the FTC could block Microsoft from taking over the gaming company.
Credit Suisse shares down more than 5% to all-time low
Credit Suisse shares fell more than 5% on Friday to hit an all time low of 3.37 Swiss francs ($3.55).
The embattled Swiss lender saw its shares continue to slide despite it securing more than $4 billion in funding from investors, including the Saudi National Bank, to shore up its financial position.
Credit Suisse is undergoing its second strategic overhaul in less than a year as it looks to address persistent underperformance in its investment bank and a string of risk management and compliance failures, which have saddled the bank with substantial litigation costs.
– Elliot Smith
Investors’ fear of missing out on the upside is back, analyst says
Emmanuel Cau, head of European equity strategy at Barclays, speaks to CNBC’s “Squawk Box Europe.”
We’re still positive on UK but it’s headed for a deep recession, chief economist says
The U.K. is headed for a deeper recession than Europe and the U.S., according to Rupert Thompson, chief economist at investment firm Kingswood.
Black Friday transactions match 2021 so far, Barclaycard says
The volume of Black Friday card transactions are in line with 2021 levels, according to Barclaycard Payments data.
The data covered purchases up until 10 a.m. London time made through Barclaycard Payments, which processes £1 out of every £3 spent on debit and credit cards in the U.K.
Investors are keeping a close eye on the annual shopping extravaganza to see how inflation and cost-of-living woes are impacting consumer spending.
— Hannah Ward-Glenton
German yield curve inversion hits fresh 30-year record
Germany’s yield curve hit its deepest inversion since 1992, Reuters reported, citing Refinitiv data.
Many economists view an inverted yield curve as a precursor to a recession.
There is widespread agreement among analysts that Germany is heading for a recession, though Friday’s final GDP reading for the third quarter showed 0.4% quarter-on-quarter and 1.3% annual growth, fuelling hopes that it will be shallow.
Eurozone PMI figures for November showing a moderation in the slowdown of business activity have also added to cautious optimism.
— Jenni Reid
German GDP growth raises hopes of milder recession
German GDP figures show the country’s economy has grown slightly more in the third quarter than anticipated on the back of consumer spending.
Europe’s largest economy grew by 0.4% compared to the second quarter and by 1.3% year on year, according to the Federal Statistics Office.
Germany is expected to fall into recession, but the data suggests it may not be as severe as first projected.
— Hannah Ward-Glenton
Stocks on the move: UK homebuilders down on first-time buyer survey, Rockwool up 4%
At the top of the Stoxx 600, Danish mineral wool product manufacturer Rockwool International gained 4% after Morgan Stanley raised its price target for the stock.
Here are the opening calls
CNBC Pro: Asset manager names two stocks to short as UK commercial real estate turns ‘toxic’
The U.K. commercial property sector is in a “toxic environment” for investors, according to Plurimi Wealth’s chief investment officer.
Patrick Armstrong told CNBC’s Pro Talks that the real estate sector was “sensitive” to higher interest rates, which he thinks will lead to lower property values and share prices.
He revealed two stocks he was betting against in the sector by shorting their shares.
— Ganesh Rao
CNBC Pro: Outperforming asset manager picks the stocks set to win as margins get squeezed
Patrick Armstrong, chief investment officer at Plurimi Wealth, believes margin squeeze is the ‘biggest risk’ for equities. But he thinks some stocks could beat the trend.
“Own sectors with defendable margins or that are creating margin squeeze elsewhere,” he added, naming the sectors and stocks he likes best.
Pro subscribers can read more here.
— Zavier Ong
CNBC Pro: UBS says recession in 2023 will be an inch deep but a mile wide — and that’s not priced into stocks
Global economic conditions will shift next year and that’s going to flip which markets and sectors underperform, according to the chief strategist of UBS Investment Bank.
“It’s an inch deep but it’s a mile wide,” he said of the expected recession. “Global growth is at 2% and that is not priced into stocks,” Bhanu Baweja told CNBC’s “Squawk Box Europe” Wednesday.
He also named which sectors he expects to outperform next year.
— Jenni Reid
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