European markets close 1.2% lower with Fed in spotlight; SocGen down 12% – CNBC

Slovak Central Bank President Peter Kazimír on Monday poured cold water on the narrative that the European Central Bank is done with interest rate hikes following Thursday’s hike.

“I would have liked last week’s interest rate hike to be the last. However, common sense tells us to never say never,” Kazimír said.

Inflation and growth forecasts for December 2023 and March 2024 will show whether the central bank is making “unequivocal and steady” progress toward its inflation target, it said.

He also said it was “premature” for markets to bet on when the first cuts would occur, and that if rates peaked, “we may have to camp here for a while and move on.” winter, spring and summer here. “.

-Jenni Reid

Oil prices rose slightly as investors weighed the prospect of a growing supply gap in the fourth quarter.

U.S. West Texas Intermediate crude gained more than 1% early Monday and hit a high of $91.70, the highest level since November 8, 2022, when WTI traded as high as $92.17. So far this quarter, WTI has gained 29.8%, marking its first positive quarter in three quarters.

Brent crude futures hit a high of $94.78, also hitting their highest level since November 16, 2022, when they traded as high as $94.79.

The VanEck Oil Services ETF (OIH) gained 0.9% in pre-market trading, led by Dril Quip, Liberty Energy and Transocean which were all up more than 1.5%.

—Pia Singh, Gina Francolla

Amit Walia, CEO of Informatica, discusses the role of “good data” in artificial intelligence.

Simon Gammon, Managing Partner at Knight Frank Finance, discusses the development of UK house prices.

Lonza fell to the bottom of the Stoxx 600 index after the drugmaker announced the departure of its CEO by the end of the month. The company announced the departure of Pierre-Alain Ruffieux “by mutual agreement”, with Albert M. Baehny taking over his responsibilities until a permanent successor is appointed.

Lonza was down more than 10% in morning trading as investors assess what the move means for the earnings outlook.

Shares in Ocado rose 7% after investment bank Jefferies raised its price target for the food delivery company.

SocGen said it would target a return on tangible equity (ROTE) ratio of 9-10% in 2026, up from a ROTE of 5.6% announced in late June.

The bank returned to profit in the second quarter of 2023, but retail banking revenues in France were down 13.6% compared to the previous year.

—Hannah Ward-Glenton

European markets opened negatively at the start of the week, following their Asia-Pacific counterparts falling as investors anticipate a week of central bank decisions.

The pan-European Stoxx 600 index opened 0.2% lower, with sectors split into positive and negative territory. Mining stocks led marginal gains with a 0.3% rise, while household goods were down 0.5% in early trade.

—Hannah Ward-Glenton

Bank of America has named two European chip stocks its “top picks” for the end of the year.

The Wall Street bank’s “top auto semi-trailer pick” is expected to rise more than 60% over the next 12 months.

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-Ganesh Rao

The one-year inflation outlook has fallen to its lowest level in more than two and a half years, according to a widely followed confidence gauge released Friday.

The University of Michigan Consumer Confidence Survey showed year-over-year inflation expectations plunged to 3.1% in September, tied for the lowest since January 2021. Additionally, the outlook on five years fell to 2.7%, tied for the lowest since December 2020.

However, the overall sentiment index fell to 67.7, down from 69.5 in August and below the Dow Jones estimate of 69.2.

—Jeff Cox

China’s market advantage lies in its large user base, coupled with its ability to accelerate internet penetration to support an online ecosystem – from Taobao’s online sales to self-driving bikes. service.

“The first actors of the [large language model] “The market has already begun the commercialization process, and the regulatory approval for opening more than 10 LLMs to the public has further removed obstacles to monetization,” Nomura analysts said in a September 10 note, citing meetings with businesses and industry experts in Beijing over the past few years. days before.

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European markets are expected to open in mixed territory on Tuesday.

Britain’s FTSE 100 index is expected to open 14 points higher at 7,662, Germany’s DAX up 7 points at 15,274, France’s CAC down 4 points at 7,266 and Italy’s FTSE MIB down 10 points to 28,598, according to IG data.

Profits are expected to come from Kingfisher and Ocado Retail. The data released includes final eurozone inflation figures for August.

—Houx Ellyatt