Stocks on the move: SBB up 8%, Rational down 7%
Swedish real estate company SBB saw its shares soar 8% through the afternoon, topping the Stoxx 600 after presenting its pro forma earnings capacity for 2023 following the sale of shares in education unit EduCo.
At the bottom of the index, German kitchenware maker Rational fell 7%.
It’s ‘pretty bold’ to suggest there won’t be any bad news for US earnings in 2023: analyst
Ben Jones, director of macro research at Invesco, says Europe has “priced in a lot more bad news”.
There’s “a lot of upside potential” for technology, the investment firm says
Discussing the outlook for the tech sector, Per Roman, co-founder and managing partner of GP Bullhound, says: “The peak of political risk is a real awakening for the tech industry.”
According to S&P Global, the euro zone economy is likely to be headed for a slight recession
S&P Global’s final composite PMI (Purchasing Managers’ Index) for the eurozone rose to 47.8 in November from a 21-month low of 47.3 in October, staying below the 50 mark that separates expansion from contraction.
“A fifth consecutive monthly decline in manufacturing signaled by the PMI increases the likelihood that the eurozone is slipping into recession,” said Chris Williamson, chief operating officer at S&P Global Market Intelligence.
However, a slowdown in the rate of contraction means that GDP in the region is likely to shrink by just 0.2%, Williamson predicted.
According to S&P Global, the UK economy is facing the “toughest time” since the financial crisis
Britain’s services sector contracted for the second straight month in November as the country’s cost-of-living crisis continued to weigh on demand, according to S&P Global’s services PMI (Purchasing Managers’ Index) on Monday.
Services PMI stayed at 48.2, hitting the 21-month low in October and staying below the 50 mark that separated expansion from contraction.
Chris Williamson, chief economist at S&P Global, said PMIs point to a growing recession risk in the UK
“A change in government and its new economic policies may have helped contain some of the financial market volatility after September’s ‘mini-budget’, but the economic picture remains stubbornly unchanged,” Williamson said.
“The overall rate of economic contraction has remained stable compared to October, suggesting that GDP has contracted at a quarterly rate of 0.4%. Therefore, this is the toughest period the UK economy has seen since the global financial crisis, apart from just the peak of the pandemic.”
Stocks on the move: Grifols up 6%, Rational down 5%
shares of grifols Soared more than 6% in early trade and topped the Stoxx 600 after Morgan Stanley upgraded the Spanish pharmaceutical company’s stock from ‘equal weight’ to ‘overweight’.
At the bottom of the index, German kitchenware maker Rational fell more than 5%.
Vodafone boss resigns
Vodafone said Monday that Chief Executive Nick Read would step down at the end of the year, with Chief Financial Officer Margherita Della Valle serving as an interim replacement.
Read’s tenure has seen the British telco sell assets to focus on Europe and Africa and spin off its tower infrastructure unit, but has failed to deliver the share price recovery investors have been asking for.
shares of Vodafone rose by 1.8% shortly after the market opened.
– Jennie Reid
Hong Kong movers: Chinese tech companies and reopened stocks rise
Hong Kong-listed Chinese tech, consumer and travel companies posted strong gains in early trade after some cities in China saw some easing of Covid restrictions.
Tech heavyweights Tencent were up 5.5% and Meituan was up 3.5%, while Alibaba was up 4.72% and Xiaomi was up 7.31%. EV stocks like Li Auto are up 9.19% and Nio are up 11.5%.
Meanwhile, Hong Kong-listed casino stocks were also higher, with MGM China up 12.44%, Wynn Macau up 12.35% and Sands China up 7.5%. Galaxy entertainment increased by 3.61% and SJM Holdings increased by 4.82%.
Operator of a hotpot restaurant Haidilao rose 15% and airline stocks soared as well. China Southern Airlines and China Eastern Airlines each rose more than 5% while Air China 4% gained.
The broader Hang Seng Index rose 3.21%.
– Abigail Ng, Jihye Lee
Oil futures are up 2% after OPEC+ remains steady and China is reportedly easing some Covid restrictions
CNBC Pro: Goldman Sachs is upgrading this global tech giant, saying its stock could soar as much as 90%
Goldman Sachs sees an opportunity in EVs, which are in an “uptrend.”
That trend will accelerate as electric vehicles become “more technology-driven” and easier to build, Goldman analysts said in a Dec. 1 report.
This will benefit a global stock, Goldman said, giving the stock upside potential of up to 90% in its bull case for the company.
CNBC Pro subscribers can read more here.
— Wheat Tan
European Markets: Here are the opening calls
European markets are set for a flat open on Monday as investors eye more regional data.
According to data from IG, the UK FTSE index is expected to open 4 points lower at 7,554, the German DAX down 2 points to 14,531, the French CAC down 2 points to 6,740 and the Italian FTSE MIB down 14 points to 24,671.
Data releases include euro-zone retail sales for October and final purchasing managers’ index data for November. There is no major revenue.
— Holly Ellyatt