European markets open to close, BOE and SNB rate decisions

European markets open to close, BOE and SNB rate decisions

Market open: Fortum up 4%, Accor down 6%

Fortum shares rose again in early trading on Thursday after the Finnish company agreed to sell its 56% stake in German utility Uniper to the German government. The state energy company changed its stake in a nationalization deal.

French hotel company Accor saw its shares fall 6.3% at the open after JP Morgan downgraded the stock to underweight from neutral. The investment bank expressed concern that the group may not return to its previous level of profitability, saying “our concerns have now outweighed the reasons we like it.”

— Hannah Ward-Glenton

Credit Suisse plans to split its investment bank into three: the FT

Credit Suisse has plans to split its investment bank into three, according to the Financial Times.

The Swiss lender wants to have a separate “bad bank” exclusively for risky assets as it recovers from several years of scandals and mistakes.

New proposals suggest that Credit Suisse will sell some of its profitable units as part of the sweeping reorganization, with full plans expected to be announced in the bank’s third-quarter results on Oct. 27, the FT reported.

— Hannah Ward-Glenton

Oil Prices Rise After Fed Rate Hikes, Demand Fears Remain

Oil prices rose after the Fed’s third consecutive rate hike.

Reuters also reported that Chinese refiners expect the nation to release export quotas for oil products worth up to 15 million tonnes for the rest of the year, citing people with knowledge of the matter.

Brent crude futures rose 0.45% to $90.24 a barrel, while US West Texas Intermediate also gained 0.45% to $83.3 a barrel.

— Lee Ying Shan

Fed hike likely to keep Asian risk assets under pressure, says JPMorgan

Asian risk assets, especially export-oriented companies, will remain under pressure in the short term following the Fed’s rate hike, according to Tai Hui, chief APAC market strategist at JPMorgan Asset Management.

Tai added that a strong US dollar is likely to persist, but monetary policy tightening in most Asian central banks, with the exception of China and Japan, should help limit the extent of the Asian currency’s depreciation.

The US Dollar Index, which tracks the greenback against a basket of its peers, strengthened sharply, last trading at 111.697.

— Abigail from

CNBC Pro: This fund manager is beating the market. This is what you’re betting against

Stock markets are down, but the fund managed by Patrick Armstrong at Plurimi Wealth continues to generate positive returns. The fund manager has a number of short positions to take advantage of market volatility.

Professional subscribers can read more here.

—Zavier Ong

CNBC Pro: Morgan Stanley’s Mike Wilson Names the Key Attribute He Likes in Stocks

Morgan Stanley’s Mike Wilson remains defensive amid persistent market volatility this year. He names the key attribute that he is looking for in the actions.

Stocks with this attribute have been “rewarded” this year, and the trend is likely to continue until the market turns more bullish, according to Wilson.

Professional subscribers can read more here.

—Zavier Ong

European markets: here are the opening calls

European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.

The UK’s FTSE index is expected to open 47 points lower at 7,341, Germany’s DAX 86 points lower at 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB down 132 points. drops to 22,010, according to IG data.

Global markets pulled back following a higher-than-expected US Consumer Price Index report for August that showed prices rising 0.1% on a monthly basis and 8.3% on a yearly basis in August, reported the the Bureau of Labor Statistics on Tuesday, defying economists’ expectations that headline inflation would fall 0.1% month-on-month.

The core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK inflation figures are expected for August and Eurozone industrial production for July will be released.

— Holly Ellyatt

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