European markets open to close, stock moves, news and data

Italy’s new PM will unveil the budget

The first budget envisaged by Italian Prime Minister Giorgio Meloni must be approved by his cabinet on Monday night, before being sent to parliament.

It is set to total more than 30 billion euros ($30.8 billion) in expansionary measures, Reuters reported, raising next year’s budget deficit to 4.5% of gross domestic product (GDP) from 3.4% forecast. in September.

About 3 billion euros will be received through air tax on energy revenue. The budget is set to include a tax on housing transfers to help retailers, and more than 21 billion euros to help households and businesses with electricity bills.

– Jenni Reid

Stocks mixed in the market open on Monday

Stocks were mixed Monday morning at the start of a short Thanksgiving holiday trading week.

The Dow Jones Industrial Average rose in the open market, selling more than 100 points, or 0.30%, led by Disney. Shares of the entertainment company rose more than 8% after it announced that former CEO Bob Iger will replace Bob Chapek with immediate effect.

Elsewhere, stocks fell as investors looked ahead to earnings reports and speeches from Federal Reserve leaders this week. The I&P 500 fell 0.20% and the Nasdaq shed 0.26%.

—Carmen Reinicke

Stocks on the move: Virgin Money up 14%, Ocado down 7%

Virgin Money shares jumped more than 13% to lead the Stoxx 600 by mid-afternoon after the company reported an increase in pretax profit for the 2022 financial year and announced a £50 million ($59.4 million) program to return the share.

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At the bottom of the European blue chip index, the British online grocer Ocado fell more than 7%.

– Elliot Smith

FTX is ‘not idiosyncratic,’ says the investment advisory firm

FTX is 'not idiosyncratic,' says the investment advisory firm

Paul Gambles of the MBMG Group says there are more shock waves coming in the cryptocurrency industry and warns that liquidity is fading.

Excess liquidity in the technology sector should be eliminated, the investment management firm says

Excess liquidity in the technology sector should be eliminated, the investment management firm says

Dan Scott of Vontobel Asset Management discusses layoffs in the tech sector.

German Wholesale inflation is lower than expected

Germany’s producer price index came in at -4.2% month-on-month in October, the federal statistics office said on Monday, below the Reuters consensus of 0.9%.

Annually, wholesale prices were up 34.5%, below expectations of 41.5%.

– Elliot Smith

Stocks moving: Net cash up 13%, IDS down 5%

Pure Money shares jumped more than 13% to lead the Stoxx 600 in early trade after the company reported an increase in pretax profit for the 2022 fiscal year and announced a £50 million ($59.4 million) share buyback program.

At the bottom of the index, shares International Distribution Services – trading as Royal Mail – is down 5% as the company deals with a wave of damage to staff during the holiday season.

Oil prices fall as China faces Covid concerns, Goldman Sachs lowers forecast

Oil prices fell around the dollar as concerns about Covid in China rose and the nation saw the highest number of virus-related deaths since May this year.

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Brent crude futures spent less than a dollar, or 0.9%, standing at 86.83 dollars per barrel and US West Texas Intermediate futures fell 1.09% to $79.21 per barrel.

Goldman Sachs has cut its forecast for Brent oil by $10 to $100 a barrel in the fourth quarter of 2022, citing Chinese demand for increased Covid concerns and insufficient data on the Group of 7’s latest price for Russian oil.

“We believe the market is right to be concerned about the fundamentals going forward,” economists including Jeffrey Currie said in a note, adding the potential for further cuts in China equals the latest production cut by OPEC+.

— Lee Ying Shan

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, ‘overvalued’

This year a 30% drop in the price of Chinese Big Tech stocks, such as Alibabamade it “very cheap,” according to investment bank China Renaissance.

Its head of equities, Andrew Maynard, not only believes that the stock market looks low, but that investors may miss out on the rally if they stay below China.

“Without a doubt, having less weight in China will pay off going forward,” Maynard said.

CNBC Pro subscribers can learn more here.

– Ganesh Rao

Markets are looking for other ways to raise the Fed and the economy next week

Investors may be more cautious next week, with stocks looking for direction on calmer trading and the bond market’s warnings of a recession.

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The Thanksgiving holiday on Thursday should mean markets will be quiet on Wednesday and Friday. Marketers will monitor reports on Black Friday holiday shopping to get customer feedback.

“It’s really a week where data reliability is the most important phrase,” said Julian Emanuel, managing director at Evercore ISI. “You’re biased [for stocks] is higher unless data continues to decline and the Fed remains on a hawkish slant … which has clearly strengthened over the last 48 hours.”

Check out our full dive into what to expect next week here.

– Patti Domm, Tanaya Macheel

CNBC Pro: Morgan Stanley’s Mike Wilson predicts the S&P 500’s downside, calling it a ‘bad buying opportunity’.

Morgan Stanley’s chief US equity strategist Mike Wilson says we are in the “end stages” of the bear market, but the situation will remain challenging for a long time.

He predicts when—and at what level—the S&P 500 will hit a “new low.”

CNBC Pro subscribers can learn more here.

– Weizhen Tan

European markets: Here are the opening calls

European markets are set to open lower on Monday as investors continue to monitor the uncertain economic outlook.

The UK’s FTSE index is expected to open 15 points lower at 7,386, Germany’s DAX down 54 points at 14,378, France’s CAC down 17 points at 6,629 and Italy of FTSE MIB down 54 points at 24,445, according to data from IG.

No big rewards on Monday. The data release includes German producer prices for October.

– Holly Elliott


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