Tue, January 2, 2024, 11:56 AM EST
European stock markets close slightly lower
European stocks closed slightly lower on Tuesday, shortly after the regional benchmark recorded its highest level in almost two years.
The pan-European Stoxx 600 index ended 0.2% lower, with most sectors in negative territory.
—Sam Meredith
Tue, January 2, 2024, 11:05 a.m. EST
Maersk suspends Red Sea shipments until further notice
Tue, January 2, 2024, 10:40 a.m. EST
Airbus to assist French and Japanese investigators after plane collision at Tokyo airport
European planemaker Airbus said on Tuesday it was sending a team of specialists to provide technical assistance to French and Japanese authorities as they investigate a collision involving one of its A350 planes at Tokyo’s Haneda Airport. .
The plane involved in the collision was delivered to Japan Airlines from the production line in November 2021 and was powered by Rolls-Royce Trent XWB engines, Airbus said.
“Our concerns and sympathies go out to the families, friends and loved ones affected by the accident,” Airbus said.
Airbus shares rose 0.8% in afternoon trading.
—Sam Meredith
Tue, January 2, 2024, 8:51 a.m. EST
Stocks on the move: Maersk up; Swiss watches on the decline
Danish shipping giant Maersk outpaced gains in Europe’s Stoxx 600 mid-afternoon, up 5.6%.
The company announced on Sunday that it would suspend all shipping in the Red Sea for 48 hours due to the continued threat of attacks from the Houthis, and it was expected to provide an update on Tuesday. Disruptions in the region have led to a sharp rise in sea freight rates.
See the table…
Moller-Maersk share price.
Tue, January 2, 2024, 7:48 a.m. EST
Bond markets not necessarily the huge opportunity some expected, strategist says
Diversification is the key to exploiting market opportunities in the coming year. This is according to Lindsay James, investment strategist at Quilter Investors, who believes that asset allocation across indices and sectors is currently the most tactical strategy.
Tue, January 2, 2024, 7:01 a.m. EST
Euro falling with data in brief
The euro fell on Tuesday morning, trading 0.69% lower against the US dollar at $1.096 as of 11:55 a.m. London time.
The euro was down 0.15% against the pound sterling at 0.866.
Investors are weighing another round of gloomy manufacturing data from the Eurozone and looking forward to a round of inflation data from France, Spain, Italy and Germany later this week, as well as supply chain deals. employment in the United States and on non-agricultural employment.
The U.S. dollar index rose 0.61%, extending its cautious gains since late 2023, with all eyes on whether the Federal Reserve will meet market expectations for rate cuts this year.
Tue, January 2, 2024, 6:14 a.m. EST
Bitcoin exceeds $45,000
Bitcoin traded above $45,000 for the first time since April 2022 earlier this year, adding to the digital currency’s strong gains over the past 12 months. Bitcoin was last at $45,605, up 4.3% on the day, according to Coin Metrics. Over the past year, that’s an increase of more than 170%.
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BTC last year
Tue, January 2, 2024, 5:24 a.m. EST
Euro zone manufacturing activity declines in December
The slowdown in euro zone industrial activity continued in December, according to the Purchasing Managers’ Index from S&P Global and Hamburg Commercial Bank, with figures suggesting a recession in the third quarter of 2023.
The bloc’s manufacturing PMI stood at 44.4, the best in seven months, but still well below the 50 mark separating expansion and contraction.
Output and job losses remained small, although new orders, purchasing activity and business confidence showed some signs of light on the horizon.
“Amid a continuing slump in the eurozone manufacturing sector, the HCOB PMI showed little improvement from November,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank .
“This indicates a sustained decline in both activity and demand for manufactured goods. The weakness in new orders echoes the gloom, falling almost as quickly as the previous month.”
“Our Nowcast model aligns with this pessimistic trend, strongly suggesting a contraction in GDP in the fourth quarter. If true, this paints a gloomy picture for the Eurozone and would mean that the Eurozone has entered recession in the third quarter.” , did he declare. added.
-Jenni Reid
Tue, January 2, 2024, 3:12 AM EST
European stocks open higher
European stock markets opened higher on Tuesday.
The benchmark Stoxx 600 index was up 0.43% as of 8:05 a.m. London time, while most sectors advanced. Oil and gas led the gains, up 1.3%, while technology stocks fell 0.2%.
Germany’s DAX and France’s CAC 40 both rose around 0.5%, while Britain’s FTSE 100 rose 0.25%.
See the table…
Stoxx 600 index.
Tue, January 2, 2024, 1:53 AM EST
UK food inflation slows
A person shops at a supermarket in London, UK.
Anadolu | Anadolu | Getty Images
Food price inflation in the UK fell to 6.7% in December from 7.7% the previous month, according to figures compiled by the British Retail Consortium.
This brings the price increase to the lowest level since June 2022.
Overall store price inflation remained unchanged at 4.3%.
“Retailers will continue to do everything they can to keep prices low in 2024, but there are obstacles in the way. New border controls for EU imports, hundreds of millions of more on business rates bills from April,” Helen Dickinson, chief executive of the British Retail Consortium, said.
-Jenni Reid
Mon January 1, 2024, 9:04 p.m. EST
Caixin China Manufacturing PMI for December Rises to 50.8
A private survey showed manufacturing activity in China increased in December, contradicting a similar survey by the country’s statistics bureau that reported a contraction.
The Caixin manufacturing purchasing managers’ index stood at 50.8 in December, according to a press release published Tuesday, after 50.7 in November. China’s official PMI fell to 49.0 in December from 49.4 the previous month, the country’s National Bureau of Statistics said in a statement on Sunday.
A PMI index above 50 indicates an expansion in activity, while an index below this level indicates a contraction.
— Clement Tan
Mon, January 1, 2024, 7:01 p.m. EST
CNBC Pro: Goldman Sachs Says These Big 3 Oil Companies Are “Selected as Attractive,” Giving 33% Upside Potential
Energy stocks may have had a tough year, but Goldman Sachs sees promise in Europe’s big oil companies – naming integrated oil stocks to play into the new year’s theme.
“We are currently at a turning point as European oil majors have started to outperform US oil majors, potentially narrowing their valuation gap by 40% compared to their US counterparts,” analysts at the bank said. investment.
The investment bank’s positive outlook on Big Oil comes even as oil prices have risen as major shipping lines and oil carriers have suspended voyages across the Red Sea. The oil outlook for 2024 is also disappointing, with the International Energy Agency expecting the slowdown to continue into next year.
Despite this, Goldman noted that “major EU oil companies are now seen as attractive thanks to enhanced buyback programs, leading to double-digit cash returns for shareholders”, naming its top picks to play.
CNBC Pro subscribers can learn more here.
-Amala Balakrishner
Mon January 1, 2024, 10:15 p.m. EST
Dutch government partially revokes ASML’s chip equipment export license to China
The Dutch government has partially revoked semiconductor equipment maker ASML’s export license to China for two of its systems used in advanced chip manufacturing.
“A license for shipping the NXT:2050i and NXT:2100i lithography systems in 2023 was recently partially revoked by the Dutch government, affecting a small number of customers in China,” ASML said in a statement.
NXT:2050i and NXT:2100i are deep ultraviolet lithography machines used in the volume production of the most advanced logic and memory chips.
The company said it does not expect the move to have a material impact on its 2023 financial outlook.
The Dutch government has banned ASML from exporting its extreme ultraviolet lithography machines to China, in a bid to contain Chinese chipmaking technology. ASML has not yet shipped the equipment to China.
-Sheila Chiang
Mon, January 1, 2024, 7:01 p.m. EST
CNBC Pro: Is it time to invest in alternative assets? The pros aren’t so sure
From family offices to financial advisors and beyond, interest in alternative assets appears to be growing – but professionals appear split on whether retail investors should invest.
For Caesar Sengupta, CEO of financial services company Arta Finance, there is “incredible value in private markets” and assets should not be overlooked.
Separately, Steen Jakobsen, Saxo’s chief investment officer, says retail investors should exercise caution when venturing into alternatives.
“I think you have to be more than just a private investor to get into it. My advice is not to buy it, even if its price is perfect,” he said, specifying the classes of assets on which he is optimistic for 2024.
CNBC Pro subscribers can learn more here.
-Amala Balakrishner
21 hours ago
European markets: here are the opening calls
European markets are expected to open in negative territory on Wednesday.
Britain’s FTSE 100 index is expected to open 16 points lower at 7,717, Germany’s DAX down 50 points at 16,719 and France’s CAC down 16 points at 7,514, according to IG data.
German unemployment data for December is released on Wednesday.
—Houx Ellyatt