End of a winning week on dovish Fed bets

European markets were flat but marked a sixth week of gains

Europe’s Stoxx 600 index closed flat on Friday, capping an upbeat week that saw it surpass a three-month high and post a sixth straight week of gains.

The main German and French bourses were flat, as the UK’s FTSE 100 gained 0.3%.

Expectations of a slow rate hike by the Federal Reserve and economic data suggesting that future recessions in Germany and the broader euro zone may be shallow cheered markets.

That’s despite the negative performance of stocks like Credit Suisse, which is facing a major turnaround after several scandals.

— Jenny Reid

Stocks opened little changed ahead of the short trading day

Stocks opened little changed on Friday before a short trading day as Wall Street looked 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 fell 0.48%, weighed down by shares of Activision Blizzard, which fell nearly 4% on news that the FTC could block Microsoft’s takeover of the gaming company.

—Carmen Reinicke

Credit Suisse shares more than 5% to an 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 has seen its shares continue to slide even as it secured 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 continued poor performance at its investment bank and a set of risk management and compliance failures, exposing the bank to substantial litigation costs.

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– Elliot Smith

Investors’ fear of losing upside is back, the analyst says

Investors' fear of losing upside is back, the analyst says

Emmanuel Cau, head of European equity strategy at Barclays, spoke on CNBC’s “Squawk Box Europe.”

We are still positive on the UK but it is heading for a deep recession, the chief economist said

We are still positive on the UK but it is heading for a deep recession, the chief economist said

The UK is heading for a deeper recession than Europe and the US, according to Rupert Thompson, chief economist at investment firm Kingswood.

Black Friday transactions are consistent with 2021 so far, Barclaycard said

The number of Black Friday card transactions is in line with 2021 levels, according to Barclaycard Payments data.

The data covers purchases up to 10 am London time made through Barclaycard Payments, which processes £1 of every £3 spent on debit and credit cards in the UK

Investors are watching the annual shopping extravaganza closely to see how inflation and cost-of-living problems affect consumer spending.

— Hannah Ward-Glenton

The German yield curve inversion hit a new 30-year record

Germany’s yield curve hit its deepest inversion since 1992, Reuters reported, citing Refinitiv data.

The gap between 2-year and 10-year government bond yields was at -27 basis points late Thursday and -26 basis points on Friday.

Many economists see an inverted yield curve as a precursor to a recession.

There is widespread agreement among analysts that Germany is headed for a recession, although Friday’s final GDP reading for the third quarter showed 0.4% quarter-on-quarter and 1.3% annual growth, raising hopes that it is shallow.

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Eurozone PMI numbers for November showing a moderate slowdown in business activity also added to cautious optimism.

— Jenny Reid

German GDP growth raises hopes of slowing recession

German GDP figures showed the country’s economy grew slightly more in the third quarter than expected on the back of consumer spending.

The largest economy in Europe 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 data suggests it will not be as severe as first expected.

— Hannah Ward-Glenton

Stocks on the move: UK homebuilders fall in first-time buyer survey, Rockwool rises 4%

Features of British homebuilders Taylor Wimpey, Bellway and Persimmon all fell more than 2% in early trade after a survey showed first-time UK buyers increasingly favored rental properties.

At the top of the Stoxx 600, Danish mineral oil product manufacturer Rockwool International gained 4% after Morgan Stanley raised its price target for the stock.

Here are the opening calls

in Britain FTSE 100 found about 2 points higher than 7,467, in Germany DAX expected to add about 8 points to 14,548 and France CAC 40 set to retreat 6 points to 6,701.

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CNBC Pro: Asset manager names two stocks short as UK commercial real estate turns ‘toxic’

The UK 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 is “sensitive” to higher interest rates, which he thinks will lead to lower property values ​​and share prices.

He revealed the two stocks he bet on in the sector by shorting their shares.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Outperforming asset manager picks stocks destined to win as margins are squeezed

Patrick Armstrong, chief investment officer at Plurimi Wealth, believes the margin squeeze is the ‘biggest risk’ for equities. But he thinks some stocks can buck the trend.

“Own sectors with defendable margins or that are making margin squeeze elsewhere,” he added, naming the sectors and stocks he likes.

Pro subscribers can read more here.

— Zavier Ong

CNBC Pro: UBS says 2023 recession 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 will flip which markets and sectors are underperforming, according to UBS Investment Bank’s chief strategist.

“It’s an inch deep but it’s a mile wide,” he said of the expected recession. “Global growth is at 2% and that’s not priced into stocks,” Bhanu Baweja told CNBC’s “Squawk Box Europe” on Wednesday.

He also named which sectors he expects to succeed in the next year.

CNBC Pro subscribers can read more here.

Jenny Reid

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