European markets close higher
European markets closed slightly higher on Wednesday, with most sectors and major exchanges in positive territory.
The pan-European Stoxx 600 index provisionally finished 0.2% higher, with household goods up 1.8% to lead the gains.
—Sam Meredith
ECB’s Holzmann says geopolitics poses biggest risk to rate cut
The geopolitical situation in the Middle East poses the biggest threat to the European Central Bank’s rate cut prospects, ECB policy chief Robert Holzmann told CNBC on Wednesday.
“At this point, I think the biggest threat is geopolitical, because we saw what happened in the Middle East,” Austrian central bank Governor Holzmann told CNBC’s Karen Tso on Wednesday. His comments came on the sidelines of the spring meetings of the International Monetary Fund.
“As you can imagine, only when a boat sinks in the [Strait] of Hormuz and the price of oil could be different, which of course could force us to rethink our strategy,” he added.
His comments echo the view of ECB policy chief Olli Rehn, who said on Tuesday that the biggest risks to monetary policy came from tensions between Iran and Israel and the war between Russia and Israel. Ukraine.
Read the full story here.
—Sam Meredith
Iranian Navy escorts country’s commercial ships to Red Sea
Iran’s navy commander is escorting the country’s commercial ships to the Red Sea, Commander Shahram Irani said in comments translated by Google and reported by Iranian media outlet Tasnim.
“We are escorting our ships from the Gulf of Aden to the mouth of Suez and we are ready to protect ships of other countries as well,” he said.
The comments come after Iran launched its first-ever direct attack on Israel from its territories over the weekend. The Jewish state and its allies intercepted the majority of missiles and drones launched as part of the attack, with Israel now considering retaliatory measures.
The Red Sea is home to the shortest trade route between Europe and the Asia-Pacific, which has been disrupted in recent months by maritime attacks by Yemen’s Iran-backed Houthis.
— Ruxandra Iordache
LVMH shares climb more than 5%
Luxury group shares LVMH continued to climb in late morning, rising 5.2% as of 11:40 a.m. London time.
The stock move comes even as the company reported a slowdown in sales in the first quarter. Sales growth was 3% in the first three months of this year, down from the pandemic-induced 17% increase recorded in the first quarter of 2023.
-Karen Gilchrist
Adidas stock up 8% after better outlook
Shoes are offered for sale at an Adidas store on February 10, 2023 in Chicago, Illinois.
Scott Olson | Getty Images
Shares of Adidas rose 8% on Wednesday after the German sportswear company raised its full-year forecast and reported a year-over-year increase in first-quarter profit.
Adidas said it expects its currency-neutral revenue to grow at a mid-to-high single-digit rate for the full year 2024, compared with a previous projection of near growth. of a mid-single digit rate.
Operating profit for the year is now expected to reach around 700 million euros ($745 million), Adidas said in its unscheduled trading report released Thursday evening. The group previously expected an operating profit close to 500 million euros.
Read more about this story here.
– April roach
ASML shares fall 4.5% after lower-than-expected sales
President Joe Biden’s administration plans to pressure the Netherlands next week to block its main chipmaking equipment maker, ASML, from supplying some tools to China, two people familiar with the matter said, so that the United States is relying on its allies in its attempt to hinder Beijing’s technology sector.
Emmanuel Dunand | AFP | Getty Images
ASML shares fell as much as 4.5% in early trading Wednesday after the company missed its sales forecast but stuck to its full-year outlook.
The chipmaker reported net revenue of 5.29 billion euros ($5.62 billion) compared with 5.39 billion euros expected by analysts. Net profit amounted to 1.22 billion euros compared to 1.07 billion euros expected.
Net sales fell 21.6% year-over-year while net profit fell 37.4%.
-Karen Gilchrist
LVMH shares up 2.5%
Luxury group shares LVMH rose 2.5% in morning trading, even as the luxury group recorded a slowdown in sales.
Sales rose 3% in the first quarter, the company said Tuesday, compared with 17% growth in the same period of 2023, as rising prices weighed on consumers yearning for its Louis Vuitton and Dior brands. .
-Karen Gilchrist
European stocks open higher
European stocks opened higher on Wednesday, with the benchmark Stoxx 600 index up 0.12% as of 8:05 a.m. London time.
France’s CAC 40 was up 0.5% and Germany’s DAX was up 0.1%, while Britain’s FTSE 100 was flat.
-Karen Gilchrist
UK inflation slows less than expected to 3.2%
View of the City of London, River Thames and Waterloo Bridge at sunset on February 10, 2024 in London, United Kingdom.
Mike Kemp | In pictures | Getty Images
Inflation in the UK returned to 3.2% in March, new data from the Office for National Statistics showed on Wednesday.
This figure is slightly higher than surveyed economists’ forecast of 3.1%, but down from 3.4% in February. Core inflation, excluding energy, food, alcohol and tobacco, stood at 4.2%, compared to a forecast of 4.1%.
Investors are closely watching the latest data to see when the Bank of England might cut interest rates.
-Karen Gilchrist
CNBC Pro: ‘Hard to ignore’: Jefferies says this cybersecurity stock could double — even after surging 75% last year
Investment bank Jefferies predicts a nearly 100% increase in the share price of a cybersecurity company from current levels.
The stock appears to have momentum as shares are up 75% over the past year and have more than doubled since hitting an all-time low in early 2023.
CNBC Pro subscribers can learn more here.
-Ganesh Rao
CNBC Pro: Morgan Stanley named its top global dividend stocks for this quarter
Investing in an increasingly volatile market – amid geopolitical risks, rising bond yields and macroeconomic uncertainty – is no easy feat.
The unpredictability has led some analysts to reiterate their recommendation to buy dividend stocks.
“”The market priced in expectations that the Fed would cut rates starting in March. Talk of “no landing” and “persistent inflation” is on the rise again. This translates into higher US bond yields and particularly favors the outperformance of dividend stocks. Morgan Stanley analysts said in a recent note, calling their shares “high conviction” for this quarter.
CNBC Pro subscribers can learn more here.
-Amala Balakrishner
European markets: here are the opening calls
European markets are expected to open in positive territory on Wednesday, building on gains recorded since the start of the week.
The United Kingdom FTSE100 the index is expected to open up 40 points at 8,084, according to the DAX up 60 points to 18,201, the CAC 20 points more at 8,130 and that of Italy MIB FTSE up 206 points to 34,331, according to IG data.
Profits come from Orange, Air Liquide, Iberdrola, Roche and Heathrow. The data released includes the German Ifo Institute’s survey on business conditions and expectations for April.
—Houx Ellyatt
