Share

European markets close higher ahead of U.S. midterm elections; Pandora up 10%

Elliot Smith
Holly Ellyatt

This is CNBC's live blog covering European markets.

European markets edged higher on Tuesday as global investors looked to the United States, where midterm elections are taking place.

European markets


The pan-European Stoxx 600 closed 0.75% higher provisionally, having recouped opening losses of almost 0.5%.

Tech stocks climbed 3.1%, leading the vast majority of sectors and all major bourses into the green. Oil and gas stocks were the sole outlier, ending down 1.6% as crude prices slipped Tuesday.

The elections 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.

Investors are also looking ahead to Thursday's U.S. consumer price index report, which 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.

Stocks in the Asia-Pacific finished mostly higher Tuesday while U.S. stocks were mixed in early trade following a positive session for markets stateside.

Follow CNBC's live coverage of the midterm elections here

U.S. stocks open mixed

U.S. stocks were mixed Tuesday as as investors awaited the results of the U.S. midterm elections and its impact on government spending and regulation.

The Dow Jones Industrial Average was up 0.5% in early days, on track for its third straight up day. Meantime, the S&P 500 and the Nasdaq Composite hovered around the flatline.

— Karen Gilchrist

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

It'll be difficult for Europe to attract LNG if China's energy demand rebounds, economist
watch now
VIDEO2:1902:19
Difficult for Europe to attract LNG if China's energy demand rebounds: Economist
Squawk Box Europe

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

Inflation hasn't peaked, says strategist
watch now
VIDEO4:0204:02
Inflation hasn't peaked, says strategist
Squawk Box Europe

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.

- Elliot Smith

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 expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 32 points higher at 8,365, Germany's DAX up 25 points at 18,510, France's CAC 7 points higher at 8,143 and Italy's FTSE MIB up 59 points at 33,908, according to data from IG.

Earnings are due from Ferrovial, Telefonica, EDP, Enel, Pirelli and Salvatore Ferragamo.

— Holly Ellyatt