Germany’s two-year government bond yield hits highest since December 2008 at 2.24%
Germany’s two-year government bond yield hit its highest point since December 2008 at 2.24% just after midday. It was up four basis points compared to the start of the trading day.
— Hannah Ward-Glenton
It’ll be difficult for Europe to attract LNG if China’s energy demand rebounds, economist
Reinhard Cluse, chief eurozone economist at UBS Investment Bank, says China hasn’t been consuming as much energy as it used to, which has allowed Europe to direct global LNG glows from Asia toward Europe.
Inflation hasn’t peaked, says strategist
Ankit Gheedia, CFA Head of Equity at BNP Paribas, says central banks will need to keep hiking interest rates and growth sectors will remain under pressure.
Ifo Institute: Surging oil and gas prices draing billions from German economy
Higher oil and gas prices are draining billions of euros from the German economy, the Ifo Institute said on Tuesday.
The economic think tank estimated that real income losses for the current year will total around 64 billion euros ($63.95 billion), or 1.8% of the country’s economic output, while losses incurred last year already amounted to more than 35 billion euros, or 1% of GDP.
“We estimate that next year will see losses of another EUR 9 billion or so, or 0.2 percent of economic output,” said Timo Wollmershäuser, head of forecasts at Ifo.
“Together, this gives us a real income loss over those three years of almost EUR 110 billion, or 3.0 percent of annual economic output. The only time this figure was higher was during the second oil crisis of 1979–81, when the loss in economic output was 4 percent.”
– Elliot Smith
Stocks on the move: Pandora up 6%, Persimmon down 8%
Quarterly earnings reports continue to drive individual share price movement in Europe.
Pandora shares climbed more than 6% in early trade to lead the Stoxx 600 after the Danish jeweler beat third-quarter profit expectations.
At the bottom of the index, British housebuilder Persimmon fell 8.7% after reporting a rise in cancellation rates and projecting fall in sales in 2023.
CNBC Pro: UBS thinks gold will rally by a double-digit percentage in 2023
Swiss investment bank UBS is forecasting a rebound in gold prices next year.
Gold has traditionally been considered an inflation hedge, but rising interest rates mean it has lost 18% of its value since March
UBS analysts said it offers “an attractive risk-reward” looking ahead — here’s why.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Markets will rally into year-end, says Morgan Stanley’s Slimmon, who names 3 stocks to buy
Morgan Stanley’s Andrew Slimmon expects the market to rise as we head toward the end of the year.
“Despite [the] Fed Chair throwing cold water on the concept of a Fed pivot, I still believe the equity market will rally into year-end,” Slimmon, senior portfolio manager at Morgan Stanley Investment Management, told CNBC’s “Street Signs Asia” Friday.
He expects all but one sector to move higher, and names three stocks to cash in.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: Here are the opening calls
European markets are set to open in mixed territory on Tuesday, with investors keeping a close eye on the U.S. midterm elections.
The U.K.’s FTSE index is expected to open 28 points lower at 7,273, Germany’s DAX up 22 points at 13,556, France’s CAC unchanged at 6,418 and Italy’s FTSE MIB up 8 points at 23,358, according to data from IG.
Data releases on Tuesday include euro zone retail sales for September, Dutch inflation data for October and French trade balance figures for September.
Earnings come from Bayer, Henkel, Munich Re, Deutsche Post DHL, Ferragamo, Banco BPM, Aveva, AB Foods and Persimmon.
— Holly Ellyatt
