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HomeBusinessEnd of a winning week on dovish Fed bets

End of a winning week on dovish Fed bets

European markets were subdued, but mark their sixth week of gains

Europe’s Stoxx 600 index closed flat on Friday, capping an optimistic week that saw it surpass its three-month high and secure a sixth week of gains.

Major German and French stock markets were flat, while the UK FTSE 100 gained 0.3%.

Expectations of slower rate hikes by the Federal Reserve and economic data suggesting that the upcoming recessions in Germany and the wider Eurozone may be shallow have lifted markets.

That was despite the negative performance of stocks such as Credit Suisse, which is facing major restructuring after several scandals.

— Jennifer Reid

Stocks open little changed ahead of the short trading day

Shares opened little changed Friday ahead of the short trading day as Wall Street looks set to close out a winning holiday week.

The Dow Jones Industrial Average rose 19 points, or 0.09%. The S&P 500 fell 0.03% and the Nasdaq Composite fell 0.48%, weighed down by Activision Blizzard shares, which fell nearly 4% on news that the FTC could stop Microsoft from acquiring the gaming company.

—Carmen Reinicke

Credit Suisse shares fell more than 5% to an all-time low

Credit Switzerland shares fell more than 5% on Friday, reaching a low of 3.37 Swiss francs ($3.55).

The embattled Swiss lender has seen its shares continue to fall, despite raising more than $4 billion in funding from investors, including the Saudi National Bank, to bolster its financial position.

Credit Suisse is undergoing its second strategic overhaul in less than a year to address its investment bank’s continued underperformance and a series of risk management and compliance failures that have saddled the bank with significant litigation costs.

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—Elliot Smith

Investors’ fears of missing out on the upside are back, analyst says

Emmanuel Cau, head of European equity strategy at Barclays, speaks to CNBC’s “Squawk Box Europe.”

We are still positive on the UK, but it is heading for a deep recession, chief economist says

We are still positive on the UK, but it is heading for a deep recession, chief economist says

According to Rupert Thompson, chief economist at investment firm Kingswood, the UK is heading for a deeper recession than Europe and the US.

Black Friday transactions so far are consistent with 2021, says Barclaycard

The volume of Black Friday card transactions is in line with 2021 levels, according to data from Barclaycard Payments.

The data covered purchases up to 10am London time made through Barclaycard Payments, which processes £1 of every £3 spent in the UK on debit and credit cards.

Investors are watching the annual shopping extravaganza closely to see how inflation and the cost of living affect consumer spending.

—Hannah Ward Glenton

German yield curve inversion hits a new 30-year record

Germany’s yield curve reached its deepest inversion since 1992, Reuters reported, citing data from Refinitiv.

The spread between 2-year and 10-year government bond yields was -27 basis points late Thursday and -26 basis points Friday.

Many economists view an inverted yield curve as a harbinger of a recession.

Analysts generally agree that Germany is heading for a recession, although Friday’s final GDP reading for the third quarter showed growth of 0.4% quarter-on-quarter and 1.3% year-on-year. hope that it will be superficial.

Eurozone PMI data for November, which show a moderation in the slowdown in business activity, also added to the cautious optimism.

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— Jennifer Reid

German GDP growth gives hope for a milder recession

Germany’s GDP figures show that the country’s economy grew slightly more than expected in the third quarter thanks to consumer spending.

According to the Federal Bureau of Statistics, Europe’s largest economy grew by 0.4% compared to the second quarter and by 1.3% year-on-year.

Germany is expected to slide into a recession, but the data suggests it will not be as severe as initially expected.

—Hannah Ward Glenton

Stocks on the move: UK homebuilders down in new buyer survey, Rockwool up 4%

Stocks of British homebuilders Taylor Wimpy, Belweg and persimmon all fell more than 2% in early trading after a survey found UK first-time buyers increasingly prefer rental properties.

At the top of the Stoxx 600, the Danish manufacturer of mineral wool products Rockwool International gained 4% after Morgan Stanley raised its price target for the stock.

Here are the opening calls

Britain FTSE 100 is seen about 2 points higher at 7,467, Germany DAX is expected to add about 8 points to France’s 14,548 CAC 40 will drop about 6 points to 6,701.

CNBC Pro: Wealth manager calls two stocks short as UK commercial real estate becomes ‘toxic’

According to Plurimi Wealth’s Chief Investment Officer, the UK commercial property sector is in a “toxic environment” for investors.

Patrick Armstrong told CNBC’s Pro Talks that the real estate industry was “sensitive” to higher interest rates, which he says will lead to lower real estate values ​​and stock prices.

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He revealed two stocks that he was betting against in the industry by shorting their shares.

CNBC Pro subscribers can read more here.

— Ganesha Rao

CNBC Pro: Outperforming asset manager chooses the stocks that will gain when margins come under pressure

Patrick Armstrong, chief investment officer at Plurimi Wealth, believes margin pressure is the “biggest risk” for equities. But he thinks some stocks could buck the trend.

“Native sectors with sustainable margins or causing margin pressure elsewhere,” he added, naming the sectors and stocks he likes most.

Pro subscribers can read more here.

— Zavier Ong

CNBC Pro: UBS says 2023 recession will be an inch deep but a mile wide – and that’s not priced into stocks

According to UBS Investment Bank’s chief strategist, global economic conditions will change next year and that will turn around underperforming markets and sectors.

“It’s an inch deep, but it’s a mile wide,” he said of the expected recession. “Global growth is at 2% and that’s not priced into stocks,” Bhanu Baweja told CNBC’s “Squawk Box Europe” on Wednesday.

He also mentioned which sectors he expects to outperform next year.

CNBC Pro subscribers can read more here.

Jennifer Reid

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