European markets closed marginally higher Monday as investors geared up for a busy week in U.S. politics, with the midterm elections, as well as the latest consumer inflation report.
The Stoxx 600 index ended up 0.3% provisionally, building on a busy week for markets last week, as central banks continued aggressive monetary tightening in a bid to rein in inflation.
Travel and leisure stocks led gains, closing up 1.6%, while food and beverage stocks dipped 0.5% by mid-afternoon.
The Bank of England implemented a 75 basis point hike to interest rates on Thursday but warned that the U.K. economy faces its longest recession on record, and the U.S. Federal Reserve also opted for a 75 basis point hike on Wednesday.
U.S. stocks, meanwhile, were mixed in early deals as investors looked ahead to Tuesday's midterm election, which will determine which party will control Congress and could affect the direction of future spending.
Democrats currently control the House, and have a majority in the Senate. A Republican sweep could signal greater support of oil and gas companies.
On the economic front, investors are anticipating Thursday's U.S. consumer price index report will give further insight into the Federal Reserve's efforts to squash inflation. A hot inflation report could signal to investors that a pivot from higher interest rates, for longer, could be further away than expected.
— CNBC's Sarah Min contributed to this report.
Stocks on the move: Millicom up 10%, GSK down 4%
U.S. stocks open mixed
U.S. stocks were mixed in morning trade Monday as investors looked ahead to a packed week, with midterm elections and inflation data on the horizon.
The Dow Jones Industrial Average was up 0.3% in early deals while the S&P 500 hovered above the flatline. The Nasdaq Composite sunk 0.4% lower.
— Karen Gilchrist
Vivendi keen to talk to Italian government about single network plan
Telecom Italia's main investor, Vivendi, wants to start talks with Italy's newly elected government to discuss plans for a national broadband company, according to sources close to the conglomerate.
Negotiations over the sale of Telecom Italia's landline grid to state lender Cassa Depositi e Prestiti have been been underway for months.
The previous government had sponsored a plan to combine Telecom Italia's fixed network assets with assets of Open Fiber, a smaller broadband operator, to create a national network controlled by the state.
— Hannah Ward-Glenton
European markets open lower
European markets opened broadly lower on Monday with the pan-European Stoxx 600 down 0.45% before paring losses to trade 0.2% lower.
Banks, retail, household goods and healthcare were among the sectors trading in negative territory.
China's October exports mark first year-on-year drop since May 2020
China's exports in U.S. dollar terms fell 0.3% in October from a year earlier, significantly missing expectations for an increase of 4.3% in a Reuters poll and a steep decline from 5.7% growth in September.
Imports also fell 0.7%, missing forecasts for a 0.1% gain from a year earlier after rising 0.3% in September.
The decline in U.S.-dollar terms last month marked the first year-on-year drop since May 2020, according to Refinitiv Eikon data.
The yuan weakened by nearly 3% against the U.S. dollar in October, according to Refinitiv Eikon.
In yuan terms, exports rose by 7% and imports by 6.8%, customs data released Monday showed.
— Evelyn Cheng
CNBC Pro: Morgan Stanley says this global battery material stock could soar by over 80%
Morgan Stanley expects shares in an Asian battery materials maker to rally by 85% by the end of next year.
This under-the-radar battery materials supplier to Tesla, which already has triple-digit revenue growth, plans to expand manufacturing into the United States.
Even JP Morgan's analysts who use a "conservative valuation approach" expect the stock to rally by 25% in a year.
— Ganesh Rao
China reopening still 'months away' despite talk of preparations: Goldman Sachs
Speculation of China's reopening led to a rally in markets last week, but economists at Goldman Sachs say that it's still "months away."
"The actual reopening is still months away as elderly vaccination rates remain low and case fatality rates appear high among those unvaccinated based on Hong Kong official data," economists led by Hui Shan said in a note.
They added that the government is probably working on an exit strategy, and that the firm expects the country to reopen in the second quarter of 2023.
— Jihye Lee
CNBC Pro: There are still opportunities in tech — here's how to trade it: Analysts
Tech firms are facing a double whammy of bad news, with disappointing earnings and continued rate hikes by the Federal Reserve both weighing on the sector.
But with the tech-heavy Nasdaq down more than 30% year-to-date, analysts say there are some bright spots that could offer opportunities to investors.
Here are some of their top picks, including one stock with an average upside of over 50%.
— Weizhen Tan
European markets: Here are the opening calls
European markets are heading for a higher open Thursday, building on positive momentum seen in the previous trading session.
Markets have been buoyed by data this week showing improved business sentiment in Germany and an uptick in eurozone services and manufacturing activity.
The U.K.'s FTSE 100 index is expected to open 20 points higher at 7,760, Germany's DAX 80 points higher at 15,158, France's CAC up 32 points at 7,075 and Italy's FTSE MIB 94 points higher at 26,053, according to data from IG.
Earnings come from LVMH, STMicro, Diageo, Superdry and Banco Sabadell. Italian consumer confidence data for January will also be released.
— Holly Ellyatt