Stocks on the move: Temenos 7%, Hellofresh 6%
Temenos shares gained more than 7% by mid-afternoon to lead the Stoxx 600 after the Swiss software company announced that CEO Max Chuard would resign.
At the bottom of the European blue chip index, German meal kit delivery company Hello fresh fell 6% after Exane BNP Paribas downgraded the stock to “neutral” from “outperform.”
– Elliot Smith
It is difficult to find gas in the short term, says Eni CEO
Claudio Descalzi, CEO of Eni, spoke of the three pillars of the energy industry.
China’s consumer recovery is coming later than expected, the EIU said
Cailin Birch, global economist at The Economist Intelligence Unit, discusses the impact of China’s reopening on the global economy.
Stocks on the move: Temenos 5%, Tecan down 4%
Temenos shares gained more than 5% in early trade to lead the Stoxx 600 after the Swiss software company announced that CEO Max Chuard will resign.
At the bottom of the European blue chip index, compatriot laboratory equipment maker Tecan Group fell 4% after Kepler Cheuvreux downgraded the stock from “buy” to “hold” and cut its price target.
– Elliot Smith
CNBC Pro: Want an alternative to Tesla? Analysts and fund managers reveal their top EV stocks
CNBC Pro: Analysts love these 12 cheap stocks – and give a 70% upside
2022 will be a bad year for many investors, with most stocks – especially technology – falling to levels not seen since 2008.
But there may be some opportunities for turmoil, with many companies trading at steeper discounts to a price-to-earnings basis than in recent history.
CNBC Pro examines these names that are also favorites on Wall Street.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Inflation outlook softens again, traders fully price in quarter-point rate hike
The decrease in inflation expectations from consumers is consistent with expectations that the Federal Reserve is likely to lower the level of interest rate increases in a few weeks, and end it soon.
The University of Michigan’s consumer sentiment survey on Friday showed the one-year inflation outlook fell to 4%, the third consecutive monthly decline and the lowest level since April 2021.
At the same time, traders assigned a 94.2% chance of a 0.25 percent increase in interest rates on February 1, when the next two-day Fed meeting ends. That marked another smaller move than the 0.5 percentage point increase in December, which itself was a drop from four consecutive 0.75 percentage point increases.
“Inflation expectations are well anchored and improving as price pressures ease in many sectors. The Fed is likely to increase by 0.25% at its upcoming meeting later this month,” said the LPL Financial chief economist Jeffrey Roach. “We shouldn’t be surprised if the Fed starts talking about a pause in the near future.”
European markets: Here are the opening calls
European markets headed for a higher open Monday as investors gauged the inflation outlook around the world after positive signs from US data last week.
The UK FTSE 100 index is expected to open 10 points higher at 7,856, in Germany DAX 84 points higher than 15,174, France’s CAC rose 43 points to 7,063 and in Italy FTSE MIB increased by 142 points to 25,895, according to data from IG.
Data releases include Germany’s ZEW survey of economic sentiment for January and Italy’s preliminary inflation numbers for January. The World Economic Forum begins in Davos, Switzerland, on Monday.
— Holly Elliott