Investors track data, Fed minutes

The Stoxx 600 continues to trade at 3-month highs

The Stoxx 600 index extended its rally to its highest level since August 19 in afternoon trade.

Gains were led by mining stocks, up 1.8%, travel stocks, up 1.5%, and technology and retail stocks, both up 0.4%.

Despite recent disappointing economic data, low consumer confidence and the rising cost of living in Europe, markets brightened after U.S. inflation came in lower than expected on expectations of a slower pace of interest rate hikes.

Meanwhile, the Purchasing Managers’ Index data for the Euro Zone published on Wednesday showed some improvement compared to the previous month.

Banking group UniCredit said the reading “dispels fears of a sharp downturn and is consistent with a mild technical slowdown at the end of the year.”

– Jenny Reid

Shares rose slightly on the last full trading day of the week

The stock market rose as the last full trading day of the week opened on Wednesday. Markets will be closed on Thursday for the Thanksgiving holiday and close early on Friday.

The Dow Jones Industrial Average rose 98 points, or 0.29%. The S&P 500 gained 0.27% and the Nasdaq Composite gained 0.45%.

-Carmen Renicke

Stocks on the move: Nemetschek down 7%, Endesa down 6%

shares of Nemetschek The German software company climbed 7.5% in early afternoon after launching a new cloud-based service on Tuesday.

At the bottom of the index, Spanish power utility Endesa fell more than 6% after new 2023-24 targets failed to cheer analysts.

EBRD: The real risk of European firms being unable to cope with the debt burden

EBRD: The real risk of European firms being unable to cope with the debt burden

CEO of Swiss pension fund foundation says he’s ‘not convinced’ by Credit Suisse restructuring

CEO of Swiss pension fund foundation says he's 'not convinced' by Credit Suisse restructuring

Vincent Kaufmann, CEO of the Ethos Foundation, which represents hundreds of Swiss pension funds that are active shareholders in Credit Suisse, criticizes the bank’s strategic reforms and the treatment of existing shareholders ahead of the key vote.

The recession will likely be an inch deep, but a mile wide, UBS strategists say

The recession will likely be an inch deep, but a mile wide, UBS strategists say

Vanu Baweja, chief strategist at UBS Investment Bank, spoke to CNBC’s “Squawk Box Europe.”

Goldman Sachs: Energy crisis will push euro zone into ‘shallow’ recession

Goldman Sachs: Energy crisis will push euro zone into 'shallow' recession

Sven Jari Stehn, chief European economist at Goldman Sachs, says the energy crisis will push the euro zone into a “very low” recession next year. However, he adds that the region is “closer” to peak inflation, with price growth expected to approach 3% next year.

Yogi Dewan says, the lower the property price, the better the time to invest

Yogi Dewan says, the lower the property price, the better the time to invest

Yogi Dewan of Hasium Asset Management says that the lower property prices are, the better time to invest.

Euro zone PMI points to recession but slows down

Euro zone November flash PMI (purchasing managers’ index) readings on Wednesday confirmed the 19-member currency bloc had entered recession, but the slowdown in business eased slightly.

S&P Global’s flash composite PMI, which covers services and manufacturing and is seen as a reliable gauge of economic health, rose to 47.8 in November from 47.3 in October, defying forecasts for a decline to 47.0 in a Reuters poll.

Any reading below 50 represents a contraction in activity, and November was the fifth consecutive month of contraction.

Also Read :  Janet Yellen: Treasury secretary says she's not seeing signs of a recession in the US economy

In the UK, the overall index was little changed from 48.2 in October to 48.3 in November.

“Although business expectations rebounded from a 30-month low in October – which was likely linked to improved domestic political conditions – current activity remains under severe pressure from weak confidence, cost pressures and tight fiscal conditions,” said Berenberg economists Holger Schmieding and Callum Pickering. said in a note.

“As in the euro zone, companies are still adding jobs. However, as labor market activity often lags behind broader economic trends, the slow pace of job creation is perhaps an ominous sign that employment will eventually deepen as the winter recession deepens.”

– Elliott Smith

Credit Suisse shareholders greenlit a $4.2 billion capital increase

Credit Suisse Shareholders on Wednesday approved a 4 billion Swiss franc ($4.2 billion) capital increase aimed at financing a massive strategic overhaul of the troubled lender.

Credit Suisse’s capital raising plans are divided into two parts. The first, which was supported by 92% of shareholders, offers shares to new investors, including the Saudi National Bank, through a private placement.

The new share offer will see the SNB take a 9.9% stake in Credit Suisse, making it the bank’s largest shareholder.

The second capital increase issued newly registered shares to existing shareholders with pre-emptive rights, and was passed with 98% of votes.

– Elliott Smith

Shares of Credit Suisse fell 5% after the restructuring update

Stocks on the move: Johnson Matthey down 6%, CTS Developments up 4%

Johnson Mathieu Shares fell more than 6% in early trade to the bottom of the Stoxx 600 after the British chemicals group posted a drop in half-year profit, with supply chain pressure on production volumes for the company’s automotive customers.

Also Read :  Can the labor movement stay hot as the job market cools?

At the top of the index, German entertainment company CTS Eventim added 4%.

Credit Suisse sees $1.6 billion loss in fourth quarter, holds shareholder vote on restructuring

Credit Suisse on Wednesday forecast a fourth-quarter loss of 1.5 billion Swiss francs ($1.6 billion) as it undertook a major strategic overhaul.

The embattled lender last month announced a raft of measures to address continued poor performance at its investment bank and a series of risk and compliance failures that have saddled it with persistently high litigation costs.

In Wednesday’s extraordinary general meeting, shareholders will vote on the bank’s restructuring and capital increase plan.

Read the full story here.

– Elliott Smith

Here are the opening calls

Britain’s FTSE 100 is forecast to rise around 12 points to 7,464, Germany’s DAX up around 25 points to 14,447 and France’s CAC 40 up around 15 points to 6,673.

CNBC Pro: UBS says self-driving cars could become $100 billion market in China — and names stocks to play it

Electric vehicles are rapidly gaining traction, especially in China, the world’s largest EV market.

But UBS believes autonomous driving will be an even bigger megatrend than electrification – with a market size of around $100 billion by 2030 in China alone.

Here’s how investors can play this megatrend, according to UBS.

Pro members can read more here.

– Javier Ong

CNBC Pro: Morgan Stanley lists major firms with potential FTX exposure

CNBC Pro: Goldman says EV batteries are becoming ‘critical’ and names 2 stock picks

According to Goldman Sachs, electric vehicle batteries are gaining “significant importance” amid the energy transition.

The investment bank named two top stocks to play the EV battery sector, with one offering upside of nearly 70%.

CNBC Pro subscribers can read more here.

– Weizhen Tan

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