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European markets close flat as investors assess Fed outlook; DAX up 20% from September low

Elliot Smith
Holly Ellyatt

This is CNBC's live blog covering European markets.

European stocks closed mixed on Monday as investors assessed recent U.S. inflation data alongside a warning from a top Federal Reserve official.

European markets


The pan-European Stoxx 600 closed up 0.1% provisionally, having struggled to break away from the flatline throughout the session. Technology stocks ended 1% higher in a mixed day's trade, while financial services and travel and leisure stocks both fell 1.3%.

Global markets received a boost last week from key U.S. inflation figures, which showed prices had risen less than expected in October. Investors cheered the inflation reading, betting that the Federal Reserve would soon slow its aggressive tightening campaign.

Nonetheless, the S&P 500 fell on Monday after it posted its biggest weekly gain in almost five months.

Fed Governor Christopher Waller suggested at a conference in Sydney on Monday that the market may have overreacted to last week's CPI report, and said policymakers still had "a ways to go" before the hiking cycle came to an end.

Meanwhile, Hong Kong's Hang Seng popped as Japan's benchmark index was dragged lower by tech giant SoftBank Group in a mixed Asia-Pacific session after closing the previous week with a big rally.

Germany's DAX up 20% from September's 2-year low

Reuters

Germany's DAX index climbed for a third straight session, hitting a level it last reached on June 9.

It is up 20% from the near two-year low it reached on Sept. 29.

German arms manufacturer Rheinmetall was among the top-performing European stocks Monday, up 8.2% in afternoon trading, after agreeing a takeover of Spain's Expal systems.

The DAX saw among the biggest rallies as global markets cheered signs of cooling U.S. inflation last week, despite the U.S. Federal Reserve indicating further rate rises are still to come, and suggestions of weakness in the euro zone economy.

— Jenni Reid

U.S. stocks open lower

U.S. stocks opened lower Monday as investors took a breather from a market rally last week.

The Dow Jones Industrial Average opened just below the flatline, while the S&P 500 was 0.6% lower in early deals. The Nasdaq Composite traded down 1.3%.

— Karen Gilchrist

Stocks on the move: Rheinmetall up 7% on Spanish acquisition

Rheinmetall shares climbed 7.5% by early afternoon after the German arms manufacturer announced a deal to buy Spanish explosives and ammunition firm Expal Systems for 1.2 billion euros ($1.24 billion).

At the bottom of the Stoxx 600, British oil and gas firm Harbour Energy fell 7.5%.

- Elliot Smith

We still need to be prepared for higher interest rates, says analyst

We still need to be prepared for higher interest rates, says analyst
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We still need to be prepared for higher interest rates, says analyst
Squawk Box Europe

Sunil Krishnan, head of multi-asset funds at Aviva Investors, discusses October's consumer inflation reading.

Euro zone industrial output jumps in September

Euro zone industrial output came in much stronger than expected in September, Eurostat said Monday, rising by 0.9% month-on-month for an annual gain of 4.9%.

Economists polled by Reuters had expected a gain of 0.3% monthly and 2.8% year-on-year. August's figure was also revised upwards to a monthly increase of 2% from 1.5%.

- Elliot Smith

Stocks on the move: Informa up 6%, Roche down 4%

Shares of Informa climbed more than 6% in early trade to lead the Stoxx 600 after the British publishing company upgraded its 2022 guidance.

At the bottom of the Stoxx 600, Roche fell 4.7% after the Swiss pharmaceutical company's Alzheimer's drug candidate failed two long-awaited trials.

- Elliot Smith

Bitcoin falls below $16,000 to lowest since Nov. 2020 as FTX saga continues

Bitcoin fell as low as $15,904.44 in Asia's morning, according to Coin Metrics, marking its lowest levels in around two years. Bitcoin last hovered around similar levels in Nov. 16, 2020, when it reached $15,860.81.

Ether also fell, reaching as low as $1,170.34, as more details emerge around crypto exchange FTX's operations.

Crypto investors have lost around $2 trillion since its peak a year ago.

— Abigail Ng

CNBC Pro: One retail stock just hit an all-time high — and Bank of America thinks it's got further to go

This year's bear market has wiped trillions of dollars in market cap off the stock market, but a few stocks have outperformed significantly during this period.

Bank of America identified three retail stocks that bucked the trend, and says one remains a buy.

Pro subscribers can read more here.

— Zavier Ong

CNBC Pro: UBS says disinflation is on the way — and shares 8 global stocks to play it

Swiss bank UBS has forecasted a "sharp" disinflation in 2023.

It said weak growth alongside "mechanical" indicators, such as easing supply chain bottlenecks and rising goods inventories, would see prices fall next year.

The investment bank screened for stocks that would benefit from such an environment.

CNBC Pro subscribers can read more about their forecasts, and eight stocks we've highlighted from their list.

— Ganesh Rao

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