European Stocks Head for Lower Open as Markets Await Latest Fed Minutes – NBC New York
This is CNBC’s live blog covering the European markets.
European markets are heading for a lower opening Wednesday as investors assess the global economic outlook and await minutes from the US Federal Reserve’s latest monetary policy meeting.
US stock futures edged higher in overnight trading as Wall Street braced for more insight into the central bank’s rate-hiking agenda.
In Asia-Pacific, markets were lower after Wall Street’s sharp overnight losses and the Reserve Bank of New Zealand continued to hike interest rates.
“Insure yourself against the worst”: Goldman picks stocks for a soft — and hard — economic landing
Investors are on edge after US stocks fell for three straight weeks, pointing to the possibility of higher interest rates for longer than expected.
The 6-month and 1-year Treasury yield closed at 5% on Friday, thanks to multiple economic data releases over the past week that pointed to a strong US economy.
A rise in bond yields leads to higher borrowing costs for companies, increasing downward pressure on stocks.
Despite this challenging environment, Goldman Sachs remains optimistic and expects a “soft landing” for the US economy. In this scenario, inflation is controlled at most with a mild recession.
To capture the upside in a soft landing scenario, the Wall Street Bank said investors should own stocks that can benefit from a decelerating inflation environment.
CNBC Pro subscribers can read more here.
— Ganesha Rao
CNBC Pro: Wall Street is loving Alibaba right now. Here’s what to expect from the tech giant’s earnings
Alibaba is a Wall Street favorite for playing China’s tech sector and the country’s reopening through Covid-19.
According to FactSet, almost all analysts — 93% — give it a buy rating. They give it an average upside potential of 43%.
The tech giant is set to announce its December quarter results on Thursday. Here’s what Wall Street expects.
– Zavier Ong
CNBC Pro: Buffett-backed BYD and more: Analysts call the best “climate stocks,” giving it a 100% upside potential
Energy storage and the future of transport are two of the “most attractive” climate themes to invest in right now, according to HSBC analysts.
Among these two themes, the bank identified Buy-rated stocks as having some of the highest upside potential to their price targets.
CNBC Pro subscribers can read more here.
— Wheat Tan
European Markets: Here are the opening calls
European markets are heading for a less open Wednesday.
According to data from IG, the UK FTSE 100 index is expected to open 16 points lower at 7,959, the German DAX 4 points higher at 15,485, the French CAC up 11 points at 7,294 and the Italian FTSE MIB up 74 points at 27,365.
The revenue is said to come from Lloyds Banking Group, Rio Tinto, Danone, Stellantis, Fresenius, Wolters Kluwer, Ferrovial and Iberdrola.
— Holly Ellyatt