Euro zone GDP, Fed meeting in focus

Stocks on the move: Unicredit up 11%, Philips down 5.8%

UniCredit continued to trade higher in afternoon deals, rising 11% after a bumper earnings report on Tuesday.

At the other end, German arms manufacturer Rheinmetall fell below the benchmark, falling 6.4%, and Philips It sank 5.8% on news that the workforce would be cut by 13%.

— Karen Gilchrist

US stocks opened higher

US stocks opened slightly higher on Tuesday as traders concluded a strong month for equities.

The Dow Jones Industrial Average traded flat in early deals, while the S&P 500 was 0.1% higher. The Nasdaq also rose 0.2%.

— Karen Gilchrist

Euro zone economy posts surprise expansion in fourth quarter, defying recession fears

The euro zone grew 0.1% in the last quarter of 2022, according to Eurostat’s preliminary data released on Tuesday.

Energy prices cooled late in the year, bringing relief to the broader performance of the euro zone economy.

The latest figures come after the euro area posted a 0.3% increase in GDP for the third quarter.

Germany was shocked by the downside of the country’s level of collapse. Europe’s largest economy contracted 0.2% in the last quarter of 2022, with analysts now expecting Berlin to go into a recession.

— Silvia Amaro

UK grocery price inflation hits record 16.7%

UK grocery price inflation hit a record 16.7% in the four weeks to January 22, an increase of 2.3% in the previous month, market research firm Kantar said on Tuesday.

The figure, the highest since the company began tracking data in 2008, marks a further worsening of the country’s cost-of-living crisis, which has seen shoppers trade branded food products for own brand labels and discount retailers.

Consumers are feeling the pinch from high food prices as inflation rises.

Nathan Stirk | Getty Images News | Getty Images

“We thought inflation was slowing down; the fact that it’s back is not good news,” Fraser McKevitt, head of retail and consumer insight at Kantar, told CNBC. Grocers “improved their own label ranges especially, with sales of these lines growing consistently over the past nine months.”

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Own-label lines grew by 9.3% in the period, while discount retailer Aldi became the fastest-growing grocer for the fourth month in a row, ahead of Lidl.

— Karen Gilchrist

A recession in Europe and the US is still possible, says the portfolio manager

A recession in Europe and the US is still possible, says the portfolio manager

Data published on Tuesday showed economic growth in France from 0.2% to 0.1% in the fourth quarter, while retail sales in Germany unexpectedly fell in December.

Joost van Leenders, senior portfolio manager at Kempen Capital Management, told CNBC that these and other indicators mean that the picture going into 2023 is “not very strong” and the possibility of a recession in Europe and the US ” still firmly on the agenda.”

— Jenny Reid

Stocks on the move: UniCredit up 7.5%, Rheinmetall down 6%

UniCredit was the top performer in early trade, rising 7.5% after the bank pledged to hand out 5.25 billion euros ($5.69 billion) to shareholders following bumper earnings.

German arms maker Rheinmetall fell 6% despite announcing yesterday that it had won a contract with the US Army, along with General Motorsto supply up to 40,000 trucks worth up to $14 billion.

— Jenny Reid

European markets opened lower with eyes on GDP data, central bank meetings

Europe’s Stoxx 600 index opened 0.2% lower, extending Monday’s slide as investors prepared to chew on a euro zone GDP flash estimate.

Figures published early Tuesday from France, the bloc’s second-largest economy, showed that growth slowed from 0.2% to 0.1% in the fourth quarter of 2022. However, earlier more than expected.

Most sectors were in the red in early trade, led by financial services, down 0.8%.

However, banks gained 0.6% after UniCredit and UBS beat profit expectations.

Stoxx 600 one week performance.

Also dominating the markets this week are central bank rate hike decisions due Wednesday in the US and from the UK and eurozone Thursday.

— Jenny Reid

UniCredit raises payout target to 40% after record profits

UniCredit CEO says the bank's transformation is not over yet
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UniCredit pledged on Tuesday to return 5.25 billion euros ($5.69 billion) to investors after posting its best profit in more than a decade.

The bank said net profit reached 2.46 billion euros in the three months to December, more than double an average forecast of 1.10 billion euros ($1.2 billion) from analysts polled by bank.

UniCredit said it expected to post a net profit in 2023 broadly in line with 2022 including its Russian business, after it was excluded from its profit target last year following Russia’s invasion of Ukraine.

It failed to extricate itself from Russia where it had a top 15 lender.

UniCredit one year share price.

Swiss bank UBS gets boost from higher interest rates, beats expectations in fourth quarter

UBS CEO says it's been a 'very good year' despite macro challenges

UBS’s fourth-quarter profit beat market expectations, but the Swiss banking giant reported falling profits on the back of weaker client activity and warned of an “uncertain” year ahead.

The bank reported $1.7 billion in net income for the fourth quarter last year, bringing full-year earnings to $7.6 billion by 2022.

Looking ahead, the Swiss lender said that revenues in the first quarter of 2023 are set to be “positively influenced” by higher client activity and interest rates, as well as the easing of restrictions. of Covid-19 in Asia.

However, it was cautious about the broader economic outlook, citing central bank activity as a potential cause of market volatility.

UBS said it will buy more of its own shares this year.

Read the full story here.

— Silvia Amaro

European markets: Here are the opening calls

European markets headed for a lower open Tuesday as investors focused on the next meeting of the US Federal Reserve, which starts today. The two-day meeting will end on Wednesday with an announcement of the central bank’s latest interest rate decision.

The UK FTSE 100 index is expected to open 26 points lower at 7,758, in Germany DAX 79 points less than 15,052, in France CAC down 40 points to 7,049 and Italy FTSE MIB down 125 points at 26,260, according to data from IG.

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Earnings from Pets at Home, UBS and Spotify, and data releases include fourth quarter euro zone gross domestic product data. Preliminary German and French inflation data for January are also due to be released.

— Holly Elliott

CNBC Pro: What a tech fund manager expects from Apple and Alphabet’s earnings this week

'Dark cloud' is coming to Alphabet stock, says tech fund manager ahead of earnings

Microsoft issued a disappointing earnings forecast last week, but its stock rallied. What does this mean for other Big Tech companies set to report earnings?

Tech fund manager Jeremy Gleeson, who oversees the £1.1 billion ($1.5 billion) AXA Framlington Global Technology Fund, said there was enough bad news in Microsoft’s earnings to “scare” investors into selling the stock.

Still, the fact that the stock rose more than 2% afterward is an “encouraging” sign for the rest of Big Tech’s earnings, Gleeson told CNBC’s “Squawk Box Europe.”

He shares his thoughts on what to expect from Apple and Alphabet this week.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Tesla shares are up 30% in the past week. This is where Wall Street sees it going next

Last week, the electronics maker’s stock jumped more than 30% after announcing its earnings. This year so far, Tesla shares are up nearly 44%.

This follows a bleak 2022 when Tesla shares fell 35% in December and nearly 65% ​​for the year.

After all this volatility, here’s where Wall Street analysts see the stock next:

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Can Chinese stocks rally further? One investment bank thinks so — and named its top stock picks

The recovery in Chinese stocks gained steam on Monday, as China’s benchmark index came within striking distance of a bull market.

Bernstein analysts believe that the rally still has to go and reveal their top stocks in its play.

Pro subscribers can read more here.

— Zavier Ong


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