European markets start week muted as investors gauge economic outlook

This is CNBC's live blog covering European markets.

European markets were muted on Monday as investors continued to assess inflationary pressures and the possible trajectory of central bank interest rates.

European markets

The pan-European Stoxx 600 provisionally closed flat on the previous session, with oil and gas stocks falling 2.6% to lead losses while food and beverage stocks gained 1.3%.

European markets closed higher on Friday last week as investors continued to assess the trajectory of monetary policy after some tough statements from U.S. Federal Reserve officials.

Global investors have taken some heart from lower-than-expected consumer and wholesale inflation prints recently, prompting bets that the U.S. central bank would have to slow its aggressive interest rate hikes.

However, St. Louis Fed President James Bullard said last Thursday that "the policy rate is not yet in a zone that may be considered sufficiently restrictive" and suggested that the terminal federal funds rate could reach the 5% to 7% range, higher than the market is currently pricing.

Overnight, shares in the Asia-Pacific mostly fell on Monday amid growing Covid concerns in China as its central bank kept the benchmark lending rates, or loan prime rates, on hold.

Meanwhile, U.S. stocks fell in early trading ahead of a Federal Reserve speech and batch of retail earnings to kick off a shortened week in the U.S. ahead of the Thanksgiving holiday.

European stocks flat; oil and gas sheds 2.6%

European stocks ended the day flat on the previous session, though the oil and gas sector led losses with a 2.6% fall.

Among individual stocks, the UK's Virgin Money was the top performer, gaining 15% after reporting higher profits for 2022 and a £50 million ($59.4 million) share buyback program.

At the other end of the scale, Scottish oil and gas firm Harbour Energy dropped 8.5%. In recent days it has said the recently-announced extension of the U.K. windfall tax on energy companies may impact its business.

— Jenni Reid

Italy's new PM to unveil budget

The first budget overseen by Italian Prime Minister Giorgia Meloni is due to be approved by her cabinet Monday night, before being sent to parliament.

It is set to total more than 30 billion euros ($30.8 billion) in expansionary measures, Reuters reported, increasing next year's budget deficit to 4.5% of gross domestic product (GDP) from 3.4% forecast in September.

Around 3 billion euros will be found through a windfall tax on energy profits. The budget is also set to include a tax on home deliveries to help shopkeepers, and more than 21 billion euros to help households and businesses with energy bills.

— Jenni Reid

Stocks mixed at market open Monday

Stocks were mixed Monday morning at the start of a short trading week for the Thanksgiving holiday.

The Dow Jones Industrial Average surged at market open, trading up more than 100 points, or 0.30%, led by Disney. Shares of the entertainment company popped more than 8% after it announced that former CEO Bob Iger will replace Bob Chapek immediately.

Elsewhere, stocks slumped as investors look ahead to more earnings reports and speeches from Federal Reserve leaders this week. The S&P 500 fell 0.20% and the Nasdaq slipped 0.26%.

—Carmen Reinicke

Stocks on the move: Virgin Money up 14%, Ocado down 7%

Virgin Money shares jumped more than 13% to lead the Stoxx 600 by mid-afternoon after the company reported a rise in pretax profit for the 2022 fiscal year and announced a £50 million ($59.4 million) share buyback program.

At the bottom of the European blue chip index, British online grocer Ocado fell more than 7%.

- Elliot Smith

FTX is 'not idiosyncratic,' investment advisory firm says

FTX is 'not idiosyncratic,' investment advisory firm says
FTX is 'not idiosyncratic,' investment advisory firm says

Paul Gambles of MBMG Group says there are more shock waves to come for the cryptocurrency industry and warns that liquidity is drying up.

Excess liquidity in the tech sector must be removed, investment management firm says

Excess liquidity in the tech sector must be removed, investment management firm says
Excess liquidity in the tech sector must be removed: Investment management firm

Dan Scott of Vontobel Asset Management discusses layoffs in the tech sector.

German October wholesale inflation well below expectations

Germany's Producer Price Index came in at -4.2% month-on-month in October, the federal statistics office said Monday, well below a Reuters consensus forecast for a 0.9% increase.

On an annual basis, wholesale prices were up 34.5%, below expectations of a 41.5% incline.

- Elliot Smith

Stocks on the move: Virgin Money up 13%, IDS down 5%

Virgin Money shares jumped more than 13% to lead the Stoxx 600 in early trade after the company reported a rise in pretax profit for the 2022 fiscal year and announced a £50 million ($59.4 million) share buyback program.

At the bottom of the index, shares International Distributions Services — trading as Royal Mail — fell 5% as the company faces further waves of damaging industrial action from workers over the holiday season.

- Elliot Smith

Oil prices drop as China faces Covid concerns, Goldman Sachs cuts forecast

Oil prices fell by nearly a dollar as Covid concerns in China rose with the nation seeing the first virus-related deaths recorded since May this year.

Brent crude futures shed less than a dollar, or 0.9%, to stand at $86.83 per barrel and U.S. West Texas Intermediate futures dropped 1.09% to $79.21 per barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 per barrel for the fourth quarter of 2022, citing dented China demand with rising Covid concerns and insufficient details from the latest Group of 7 nations' price cap on Russian oil.

"We believe the market has a right to be anxious about forward fundamentals," economists including Jeffrey Currie said in the note, adding the potential of further lockdowns in China is equivalent to the latest production cut by OPEC+.

— Lee Ying Shan

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, are 'deeply undervalued'

This year's 30% decline in the value of Chinese Big Tech stocks, such as Alibaba, has made them "incredibly cheap," according to investment bank China Renaissance.

Its head of equities, Andrew Maynard, not only believes that the stock market appears to have bottomed, but also that investors may miss out on a rally if they remain underweight on China.

"Without a shadow of a doubt, being underweight China is going to cost you going forward," Maynard said.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Markets are watching for more clues on Fed hikes and the economy in the week ahead

Investors may be a bit more cautious in the week ahead, with stocks seeking direction in quiet trading and the bond market's warnings about recession getting louder.

The Thanksgiving holiday on Thursday should mean markets will likely be quiet Wednesday and Friday. Traders will be monitoring reports on Black Friday holiday shopping for feedback on the consumer.

"It's really a week where data dependence is the key phrase," said Julian Emanuel, senior managing director at Evercore ISI. "The bias [for stocks] is higher unless data continues to deteriorate and the Fed stays on its hawkish slant... which has clearly been reinforced in the last 48 hours."

Check out our full deep dive on what to expect in the week ahead here.

— Patti Domm, Tanaya Macheel

CNBC Pro: Morgan Stanley's Mike Wilson predicts the S&P 500's bottom, calls it a 'terrific buying opportunity'

Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson says we're in the "final stages" of the bear market, but the situation will remain challenging for a while longer.

He predicts when — and at what level — the S&P 500 will hit a "new low."

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets are heading for a positive open Tuesday as investors continue to gauge the global economic outlook.

The U.K.'s FTSE 100 index is expected to open 11 points higher at 7,847, Germany's DAX 17 points higher at 15,364, France's CAC up 17 points at 7,150 and Italy's FTSE MIB up 30 points at 27,086, according to data from IG.

BP, BNP Paribas, Siemens Energy and Carlsberg are all set to report earnings, and data releases will include German industrial production for December.

— Holly Ellyatt