17 Mins Ago
Stocks on the move: Autos climb 1.4%
Autos stocks rose 2% in early trade before trimming gains to 1.2% despite broader negativity in markets.
The European Commission, the executive arm of the European Union, on Wednesday launched an investigation into subsidies given to electric vehicle makers in China.
Volvo and Renault topped the Stoxx 600, gaining 4.6% and 4.4%, respectively, while Volkswagen shares climbed 2.5%.
— Jenni Reid
An Hour Ago
UK economy contracted more than expected in July
U.K. gross domestic profit fell by 0.5% in July, below the 0.2% contraction forecast in a Reuters poll of economists.
Services output was the main drag, the Office for National Statistics said, declining 0.5%.
The economy put in a better-than-expected performance for the second quarter as a whole, with the ONS reiterating its reading of 0.2% growth.
It is the latest sign of economic strain amid higher interest rates. On Tuesday, figures showed U.K. mortgages in arrears jumped to a seven-year high in the three months to June.
Paul Dales, chief U.K. economist at Capital Economics, said the GDP figures may indicate a mild recession has begun and “underlying growth has lost momentum since earlier in the year.”
Dales highlighted strikes and unusually wet weather as drags on certain sectors, but said output declined more broadly, suggesting widespread weakness.
“Even so, with wage growth still uncomfortably strong, we suspect the Bank of England will still raise interest rates one final time next week, from 5.25% to 5.50%,” Dales said.
— Jenni Reid
An Hour Ago
Oil prices push higher after hitting 10-month high
Oil prices climbed Wednesday morning after hitting their highest level since November 2022 on supply concerns.
ICE Brent Crude futures with November 2023 expiry were 0.22% higher at $92.26 a barrel at 7 a.m. London time. WTI Crude futures were 0.3% higher at $89.11.
Both benchmarks rose nearly 2% on Tuesday.
Export terminals have been closed in Libya amid devastating storms that have killed more than 1,000 people.
Meanwhile, OPEC released its monthly market report, reiterating its forecast for demand for the rest of the year.
A separate report from the U.S. Energy Information Administration said it expected global oil inventories to decline in the fourth quarter, and for Brent crude to average $93 per barrel for the period. It also raised its 2023 oil demand growth forecast.
Brent Crude last week rose above $90 a barrel for the first time this year after Saudi Arabia extended voluntary output cuts.
See Chart…
Brent Crude futures, November ’23.
7 Hours Ago
CNBC Pro: Alibaba and more: CLSA names 3 of the ‘cheapest AI plays’ worldwide — giving two over 50% upside
Analysts at capital markets and investment group CLSA picked three global stocks they expect will benefit from the “lucrative potential” of artificial intelligence.
“We estimate the global AI market could reach $1 trillion by 2026, with generative AI, the next big driver of productivity and innovation, making up $100 billion,” the analysts said in a note.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
14 Hours Ago
Apple stock falls as company unveils iPhone 15
Apple stock slipped 1.8% Tuesday after the company unveiled the iPhone 15 at its “Wonderlust” launch event in Cupertino.
The latest handset in the popular iPhone line of smartphones boasts a 48 megapixel main camera, the A16 Bionic chip and 4K cinematic mode. The iPhone 15 is also made with 75% recycled aluminum and 100% recycled copper. The iPhone 15 will start at $799 for the base model, $999 for the Pro and $1199 for the Pro Max.
— Brian Evans
7 Hours Ago
CNBC Pro: Morgan Stanley names its top stock picks — and its ‘least favored’ — in a corner of the chip market
A “recovery narrative” has been playing out in a corner of the semiconductor market this year, according to Morgan Stanley.
Pricing and inventory conditions are improving further for this segment, the bank said.
It names its top picks and least favored stocks.
CNBC Pro subscribers can read more here.
— Weizhen Tan
18 Hours Ago
October WTI crude oil futures reach highest since last November
October West Texas Intermediate crude oil futures climbed as high as $88.45 a barrel (42 gallons) early Tuesday, the highest since Nov. 15, 2022.
WTI hasn’t closed above above $90 a barrel since last Nov. 11.
November Brent futures — the global benchmark — also hit a 10-month high Tuesday, reaching $91.50 a barrel.
Permian Resources, Range Resources, EQT, Denbury and other energy plays are all up 1% or more in early trading.
— Scott Schnipper, Gina Francolla
7 Hours Ago
CNBC Pro: A $16 billion lawsuit payout is going to send this stock soaring, analysts say
Shares of U.S. and UK dual-listed stock jumped 20% last week after a U.S. judge ruled in favor of the company.
The share of a $16 billion payout from the lawsuit is expected to take the stock soaring, according to Jefferies and Numis.
CNBC Pro subscribers can read more here.
— Ganesh Rao
4 Hours Ago
European markets: Here are the opening calls
European markets are expected to open in negative territory Wednesday.
The U.K.’s FTSE 100 index is expected to open 35 points lower at 7,494, Germany’s DAX down 99 points at 15,818, France’s CAC 37 points lower at 7,212 and Italy’s FTSE MIB down 190 points at 28,389, according to data from IG.
Data releases include euro zone industrial production data for July, U.K. industrial output and gross domestic product figures for July, and U.S. inflation figures for August.
— Holly Ellyatt
