Stoxx 600 profits in early trading
The pan-European Stoxx 600 rose 0.8% early in trading, with banks contributing 1.7% to the lead as all sectors advanced except basic funds, which fell 0.6%.
The best performer on the index was Danish healthcare company Ambu, up about 7.3%, while the worst performer was investment group Storskogen, down 5.6%.
— Holly Ellyatt
CNBC Pro: Strategist Reveals Why This FAANG Stock Is A Safe Bet Ahead Of September
A “seasonal” period for equities is imminent, which could lead to more volatility for equity markets.
But King Lip, chief strategist at BakerAvenue Wealth Management, believes one FAANG stock could be a safe bet.
Pro subscribers can read the story here.
— Zavier Ongo
The US needs a ‘miracle’ to avoid a recession: Stephen Roach
The US will go into recession unless a “miracle” happens, said Stephen Roach, who was previously chairman of Morgan Stanley Asia.
“We’re definitely going to have a recession as the delayed effects of this major monetary tightening kick in,” he told CNBC’s “Fast Money” Monday. “They haven’t fallen for it at all now.”
“The unemployment rate should probably go above 5%, hopefully not much higher than that. But it could go to 6%,” Roach added.
— Jihye Lee, Stephanie Landsman
CNBC Pro: Analyst names the stocks ‘at risk of moving to $0’ and 3 top picks, up more than 80%
Cash-burning stocks are about to be hit, says David Trainer, CEO of investment research firm New Constructs.
That’s because interest rates will go even higher, meaning liquidity will dry up, he explained
He tells investors to avoid “zombie” stocks and identifies stronger bets.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: these are the opening calls
European equities are expected to open cautiously higher on Wednesday, with the UK’s FTSE index rising 18 points at 7,560, Germany’s DAX 33 points higher at 13,944, France’s CAC 40 18 points higher at 6,616 and Italy’s FTSE MIB 42 points higher at 13,944. 23,029, according to data from IG.
Data releases include preliminary unemployment data in the eurozone for the second quarter and gross domestic product for the second quarter. The latest UK inflation figures for July will be released, as well as preliminary Dutch GDP for the second quarter.
Revenues come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.