European markets close higher as another report suggests cooling U.S. inflation
This is CNBC's live blog covering European markets.
European markets advanced on Tuesday after another report signaled that U.S. inflation could be slowing, boosting bets that the Federal Reserve may ease up on interest rate hikes.
The pan-European Stoxx 600 provisionally closed up by 0.2%, gaining on the back of the U.S. data release. Technology stocks led the gains, adding 1.4% while telecoms fell over 1%.
The U.S. producer price index, a measure of wholesale inflation, increased by 0.2% month-on-month against a Dow Jones consensus estimate of 0.4%.
European stocks began Tuesday on a tepid note after a choppy session in the United States on Monday, led by comments from Federal Reserve leaders Lael Brainard and Chris Waller about interest rate hikes.
While Brainard said the central bank could ease rate increases, Waller said the market was overly optimistic and should brace itself for higher rates. U.S. stock futures were higher in premarket trade on Tuesday after the PPI print.
Shares in the Asia-Pacific were mostly higher on Tuesday following the meeting between Chinese President Xi Jinping and U.S. President Joe Biden.
Global markets will be watching events at the Group of Twenty summit in Bali, Indonesia, that kicks off on Tuesday.
U.S. stocks jump on inflation report
U.S. stocks opened higher Tuesday, buoyed by another report which suggested inflation could be slowing.
The Dow Jones Industrial Average rose 1% in early deals while the S&P 500 was up 1.7%. The Nasdaq Composite also jumped 2.6%.
The produce price index, a measure of wholesale inflation, rose 0.2% for the month, versus the consensus estimate for a 0.4% increase from Dow Jones.
— Karen Gilchrist
Producer price index rises less than expected in October
The producer price index, a measure of wholesale inflation, rose 0.2% in October on a month-over-month basis. Economists polled by Dow Jones expected an increase of 0.4%.
The report comes less than a week after the consumer price index report showed a lighter-than-expected increase as well, stoking optimism that inflation could be easing.
— Jeff Cox
German investor sentiment jumps on inflation peak hopes
The ZEW economic research institute said Tuesday that its economic sentiment index rose to -36.7 in November from -59.2 in October, well above a Reuters consensus projection of -50.0.
The improvement in German investor morale, though the outlook remains negative, was likely down to hopes that inflation rates will soon begin to fall from their record highs in the euro zone, ZEW President Achim Wambach said.
"In this case, policymakers would not have to hit the brakes on monetary policy as hard and/or for as long as feared."
- Elliot Smith
Stocks on the move: Teleperformance up 8%, Ambu down 17%
Shares of French call center company Teleperformance climbed more than 8% by mid-afternoon to lead the Stoxx 600 after Citigroup upgraded the stock to "buy" from "neutral."
At the bottom of the index, Danish health care equipment company Ambu plunged more than 17% after reporting a quarterly loss.
- Elliot Smith
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UK labor market cooled slightly in the third quarter
The U.K.'s tight labor market cooled slightly in the third quarter as the economy went into contraction.
Unemployment came in at 3.6% in the three months to September, up from an almost five-decade low of 3.5% registered between June and August.
Data from the Office for National Statistics indicated that payrolled employees grew by 74,000 in October to an all-time high of 29.8 million, though jobless claimant numbers rose slightly over the month.
Job vacancies declined for a fourth straight quarter, but remained at historically high levels, while pay growth increased, signaling persistent inflationary pressures.
Daniel Mahoney, U.K. economist at Handelsbanken, said the latest figures highlight that the U.K. labour market continues to pose a "headache" for policymakers.
"The growth in inactivity rates is an especially concerning problem given that has been observed much more strongly in the U.K. compared to many of its G7 counterparts. This goes some way to explaining why the U.K.'s economic performance following the pandemic has been lackluster, with its GDP still below pre-crisis levels," Mahoney said.
"Growth in inactivity has also been feeding inflationary pressures as it has contributed to employers all too often struggling to hire staff. As the U.K. heads into recession, the Bank of England now has a tricky balancing act between suppressing any signs of domestically-led inflationary pressures and ensuring that the downturn is not unnecessarily protracted."
- Elliot Smith
Stocks on the move: Teleperformance up 5%, Ambu down 11%
Shares of French call center company Teleperformance climbed more than 5% to lead the Stoxx 600 after Citigroup upgraded the stock to "buy" from "neutral."
At the bottom of the index, Danish health care equipment company Ambu plunged more than 11% after reporting a quarterly loss.
- Elliot Smith
Credit Suisse sells most of its securitized products business to Apollo as it speeds up restructure
Credit Suisse on Tuesday announced that it would accelerate the restructure of its investment bank by selling a significant portion of its securitized products group (SPG) to Apollo Global Management.
Credit Suisse said the transaction, along with the potential sale of other assets to third-party investors, is expected to reduce SPG assets from around $75 billion to $20 billion.
The bank said the move represented an "important step towards a managed exit from the Securitized Products business, which is expected to significantly de-risk the investment bank and release capital to invest in Credit Suisse's core business."
- Elliot Smith
China's industrial output, retail sales miss expectations in October
China's industrial production grew 5% in the month of October compared with a year ago, slowing from an increase of 6.3% seen in September. The latest figure misses estimates of a 5.2% rise predicted in a Reuters poll.
Separately, retail sales in China fell 0.5% in October from a year ago, missing expectations.
Analysts polled by Reuters expected a 1% increase, and retail sales grew 2.5% in September.
— Abigail Ng
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European markets: Here are the opening calls
European markets are heading for a negative open Thursday as investors digest the latest rate hike by the U.S. Federal Reserve and comments from Fed Chair Jerome Powell.
The U.K.'s FTSE 100 index is expected to open 20 points lower at 7,538, Germany's DAX 54 points lower at 15,160, France's CAC 37 points lower at 7,092 and Italy's FTSE MIB down 102 points at 25,928, according to data from IG.
In Europe Thursday, the Bank of England will also be announcing its latest interest rate decision. The monetary policy committee's meeting comes a day after data was released showing U.K. inflation rose unexpectedly in February. Many analysts expect a 25 basis point hike.
— Holly Ellyatt