European markets fall on Fed chair comments; British pound slides 1.4%; HelloFresh shares sink

Europe's Stoxx 600 index closed 0.8% lower provisionally on Tuesday, pulled down by a hawkish speech by Federal Reserve Chair Jerome Powell.

All sectors fell, while Germany's DAX lost 0.6%, France's CAC 40 fell 0.46% and the U.K.'s FTSE 100 gave up earlier gains to finish 0.13% lower.

The British pound plunged 1.3% on the dollar to $1.186, while the euro dipped 0.95% to $1.0578.

— Jenni Reid

Markets are now pricing in at least a 50-50 chance that the Federal Reserve raises its benchmark interest rate by half a percentage point later this month.

Following remarks Tuesday from Fed Chairman Jerome Powell, traders upped their bets that the central bank accelerates to a 50 basis point move at the March 21-22 meeting of the Federal Open Market Committee.

The probability of a half-point increase rose to 51.3% in late-morning trading, according to CME Group data. That's up sharply from 31.4% a day ago and just 9.2% a month ago.

Previously, markets had largely expected the Fed to hold to the quarter-point increase it adopted on Feb. 1. That marked a step down from more aggressive rate hikes in 2022.

Traders now expect the peak in the funds level — the "terminal" rate — to hit a range of 5.5%-5.75% by summer. Specifically, the October 2023 fed funds rate contract implies a terminal rate of 5.58%.

— Jeff Cox

U.S. stocks opened flat on Tuesday as Wall Street awaited Federal Reserve Chari Jerome Powell's testimony.

The Dow Jones Industrial Average traded flat, while the S&P 500 dipped 0.06%. The Nasdaq Composite inched 0.04% higher.

— Samantha Subin

Klaus Rosenfeld, CEO of the German automotive supplier, discusses its earnings and how the firm is approaching the automotive industry's transition to electric vehicles.

Dollar strength ahead of Federal Reserve Chair Jerome Powell's speech on Tuesday pushed the British pound 0.3% lower on the day, as it traded at $1.198 at midday London time.

Bank of England rate-setter Catherine Mann said in the morning that the pound could face downward pressure if investors have not yet fully priced in hawkish signals from the Fed and the European Central Bank, Reuters reported.

The euro was 0.22% lower against the greenback at $1.0655.

The dollar also strengthened against the Swiss franc and the yen, and Treasury yields fell.

Stock markets were broadly steady ahead of the closely-watched remarks through which investors will pore for clues on the interest rate outlook.

— Jenni Reid

Many trains and flights have been cancelled in France, where schools are closed and fuel deliveries are blocked from leaving refineries, as thousands of workers protest President Emmanuel Macron's pension reforms.

Thierry Cotillard, head of French supermarket group Les Mousquetaires, expects that the strike action could lead to a petrol shortage by the end of the week, according to the BBC.

The government wants to raise the retirement age from 62 to 64 and pass other measures to shore up the pension system, which runs a projected annual deficit of 10 billion euros ($10.73 billion) each year between 2022 and 2032

The moves are opposed by a majority of the public, and some unions are vowing rolling strike action to pressure Macron. Macron seeks to pass the reforms in parliament, where he does not have a majority, or potentially use special constitutional powers to force them through.

Markets appeared to brush off the disruption, with France's CAC 40 trading 0.15% higher by early afternoon Paris time.

Read the full story.

— Jenni Reid

Jane Shoemaker, client portfolio manager at Janus Henderson, discusses the company's latest global dividend index.

Shares of HelloFresh fell as much as 11% in early trade as the company's outlook for 2023 missed expectations. Losses then recovered slightly to 9% by 8.15 a.m. London time.

The German meal kit delivery service adjusted its EBITDA for the upcoming year from 547 million euros ($585 million) to between 460 million and 540 million euros.

Co-founder and CEO of HelloFresh Dominik Richter said 2022 had posed "a whole new set of challenges" but that in a difficult macro environment the company had still posted "healthy growth rates and maintained strong levels of profitability."

— Hannah Ward-Glenton

Although chip stocks have broadly rebounded this year, Citi warns that they could be about to hit new lows as companies trim guidance.

Given its bearish stance, the bank identifies one buy-rated stock as the "most defensive name" and a number of others it says offer the most upside once the downturn is over.

CNBC Pro subscribers can read more here.

— Weizhen Tan

The recent rise in stocks is a "sucker's rally," according to chief investment officer Peter Toogood.

The CIO of U.K.-based financial services company Embark Group said he now expects a pullback in U.S. equities, after the S&P 500 rose by 14% since the start of October.

CNBC Pro subscribers can read more here.

— Ganesh Rao

China saw its exports fall by 6.8% in February, declining less than expectations of a 9.4% drop, according to economists surveyed by Reuters. The drop was also less than the previous month's fall of 9.9%.

Imports also fell 10.2%, down more than expectations to see a drop of 5.5% on an annualized basis and a further decline from the previous month's contraction of 7.5%.

The economy's trade surplus in U.S. dollar terms were at $116.88 billion, higher than expected and an increase from the previous month's surplus of $78 billion.

— Jihye Lee

New bull market or yet another bear market rally? Veteran investor Michael Landsberg is in the latter camp.

"Patience, as well as careful individual stock selection, is key going forward," says veteran investor Michael Landsberg, naming several opportunities still present in the market.

Pro subscribers can read more here.

— Zavier Ong

Although chip stocks have broadly rebounded this year, Citi warns that they could be about to hit new lows as companies trim guidance.

Given its bearish stance, the bank identifies one buy-rated stock as the "most defensive name" and a number of others it says offer the most upside once the downturn is over.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets are expected to open mixed Thursday.

The U.K.'s FTSE 100 index is expected to open 7 points higher at 7,624, Germany's DAX 33 points lower at 15,929, France's CAC 14 points lower at 7,194 and Italy's FTSE MIB 22 points lower at 27,025, according to data from IG.

Data releases Thursday include euro zone unemployment figures for the first quarter and revised gross domestic product data for the same period. There are no major earnings releases today.

— Holly Ellyatt