FTSE 100 inches closer to all-time high

The UK’s FTSE 100 looked set for a fourth session of gains, down 0.2% just before the markets closed.

The index reached 7,860 points, and continues to advance towards its all-time high of 7,903, set in 2018.

Although the FTSE has been criticized for attracting less forward-thinking and innovative companies than some of its peers, it benefited from a boom in energy and commodity stocks last year. Investors also seemed attracted by the low valuations on offer in London and the potential to pick up dividend-paying stocks.

That was despite repeated recession warnings weighing on UK sentiment.

In a note published Monday, analysts at Pantheon Macroeconomics said the economy was likely to narrowly avoid a recession in the second half of 2022, but forecast significant declines in the first and second quarters of 2023. They also said the recent slump in natural gas prices had improved. prospects for later in the year.

—Jenni Reid

Stocks on the Move: Temenos Up 7%, Hellofresh Down 6%

fear us shares rose more than 7% in midafternoon to lead the Stoxx 600 after the Swiss software company announced chief executive Max Chuard would step down.

At the bottom of the top European index, the German meal kit delivery company hello cool it fell 6% after Exane BNP Paribas downgraded the stock’s rating to “neutral” from “outperform.”

-Elliot Smith

It will be difficult to find gas in the short term, says the CEO of Eni

It will be difficult to find gas in the short term, says the CEO of Eni

Claudio Descalzi, CEO of Eni, analyzes the three pillars of the energy industry.

Chinese consumer recovery will come later than expected, says EIU

Chinese consumer recovery will come later than expected, says EIU

Cailin Birch, global economist at The Economist Intelligence Unit, discusses the impact of China’s reopening on the global economy.

Stocks on the Move: Temenos Up 5%, Tecan Down 4%

fear us shares gained more than 5% in early trading to lead the Stoxx 600 after the Swiss software company announced chief executive Max Chuard would step down.

At the bottom of the top European index, the compatriot manufacturer of laboratory equipment Tecan Group It fell 4% after Kepler Cheuvreux downgraded the shares from “buy” to “hold” and lowered its price target.

-Elliot Smith

CNBC Pro: Want an alternative to Tesla? Analysts and Fund Managers Reveal Their Top EV Stocks

CNBC Pro: Analysts Love These 12 Cheap Stocks And They Give A 70% Upside

2022 was a bad year for many investors, and most stocks, especially tech stocks, plummeting to levels not seen since 2008.

But there could be some opportunity in the chaos, with a number of companies trading at deeper discounts on a price-earnings basis than in recent history.

CNBC Pro weighed in on these names that are also Wall Street favorites.

CNBC Pro subscribers can read more here.

—Weizhen Tan

Inflation outlook softens again, traders fully discounting quarter-point rate hike

The decline in consumer inflation expectations coincides with expectations that the Federal Reserve is likely to scale back interest rate hikes in a few weeks and end them entirely soon.

The University of Michigan consumer confidence survey on Friday showed the one-year inflation outlook dipped to 4%, the third consecutive monthly decline and the lowest level since April 2021.

At the same time, traders assigned a 94.2% probability of a 0.25 percentage point interest rate hike on February 1. 1, when the Fed’s next two-day meeting concludes. That marks another smaller move than the 0.5 percentage point rise in December, which itself was a slowdown from four straight 0.75 percentage point rises.

“Inflation expectations are well anchored and improving as price pressures are easing across many sectors. The Fed is likely to hike 0.25% at the next meeting this month,” said the chief economist at LPL Financial, Jeffrey Roach. “We shouldn’t be surprised if the Fed starts talking about a pause in the near future.”

—Jeff Cox

European markets: here are the opening calls

European markets are heading for a higher open on Monday as investors assess the inflation outlook globally. after the positive signals from the US data last week.

the United Kingdom FTSE100 The index is expected to open 10 points higher at 7,856, the index of Germany DAX 84 points higher with 15,174, France ACC up 43 points to 7,063 and that of Italy FTSE MIB it rose 142 points to 25,895, according to IG data.

The data releases include Germany’s ZEW economic confidence survey for January and Italian preliminary inflation figures for January. The World Economic Forum begins in Davos, Switzerland, on Monday.

—Holly Ellyatt

By sbavh

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