Euro and pound set to ‘revisit extreme lows’ in 2023, strategist says
The euro and the pound are likely to “revisit their extreme lows” in 2023, Ron William of RW Advisory told CNBC.
William discussed the currency outlook on CNBC’s “Squawk Box Europe” on Tuesday.
French President Emmanuel Macron says it’s ‘absurd’ to fear power chaos
French President Emmanuel Macron said it was “absurd” to worry about power cuts in France this winter as he insisted the country would weather the cold despite the Europe-wide energy crisis.
“We must not scare people. We must stop all this,” Macron said upon arriving at a European Union summit in Albania, according to Reuters.
“We will pass this winter, despite the war [in Ukraine],” he said.
France’s power grid is already under test as utility company EDF rushes to get its nuclear reactors back online following corrosion problems.
The worst is over for gas supply security concerns, portfolio manager says
The worst is over for gas supply security concerns, according to Per Lekander, managing partner and portfolio manager at Clean Energy Transition.
Lekander discussed his outlook for European energy on “Squawk Box Europe” on Tuesday.
Stocks on the move: ADP down 12%, Darktrace down 6%
Shares of Aéroports de Paris (ADP) plunged more than 12% in mid-afternoon after Royal Schiphol sold its remaining 3.91% stake in the company at a discount.
Anglo-American cybersecurity company Dark Trace fell more than 6%.
UK construction growth slows in November
Growth in the UK construction sector slowed in November as rising interest rates and weaker economic conditions began to weigh on construction plans.
The S&P Global/CIPS UK construction PMI (Purchasing Managers Index) fell to a three-month low of 50.4 from 53.2 in October, hovering just above the 50 mark separating the contraction growth. Economists in a Reuters poll had forecast a reading of 52.0.
Stocks on the move: Ashtead up 4%, ADP down 13%
Paris Airports (ADP) shares plunged more than 13% in early trading after Royal Schiphol sold its remaining 3.91% stake in the company at a discount.
Leading the European blue chip index, Ashtead Group climbed more than 4% after the British equipment rental company raised its full-year guidance on the back of strong quarterly results.
ECB chief economist says rates will rise further, but inflation is approaching a peak
Philip Lane, Chief Economist of the European Central Bank.
Bloomberg | Bloomberg | Getty Images
European Central Bank chief economist Philip Lane said interest rates will need to rise several more times to contain inflation, but price increases in the euro zone are approaching a peak.
In an interview published on Tuesday, Lane told Italian newspaper Milano Finanza that it remains unclear whether that peak has already arrived or is expected in early 2023.
“The main uncertainty is that we have seen such volatility in gas prices. In some countries, consumer prices have moved a lot, while in others, for example, some utility companies have not yet done raising prices,” Lane said.
“Given the significant increase in prices, I do not rule out additional inflation at the beginning of next year. Once we pass the first months of 2023, later in 2023 – in spring or summer – we should see a significant drop in the rate of inflation.”
German factory orders beat expectations in October
German factory orders rose 0.8% month on month in October on a seasonally and calendar-adjusted basis, the country’s federal statistics office said on Tuesday.
The reading comfortably beat expectations of 0.1% in a Reuters poll of analysts and showed a marked improvement from a 2.9% plunge in September.
CNBC Pro: Fund manager says a “turning point” for Big Tech is near. Here’s what he’s looking at
A fund manager said a “great week for a potential turn” in the Nasdaq Composite could be on the horizon.
The tech-heavy Nasdaq has fallen 26.2% this year as the Federal Reserve raised borrowing costs in a bid to keep inflation under control.
Julian Howard, director of multi-asset investments at GAM, told CNBC what catalyst to look for and when it might be a good time for tech investors to re-enter the market.
CNBC Pro subscribers can learn more here.
CNBC Pro: Analysts Think These November Gainers Can Rally More – and Give 2 Over 160% Upside
These global stocks had a winning November, outperforming the MSCI World Index.
CNBC Pro reviewed FactSet for stocks that not only performed well last month, but could still see more upside.
Pro subscribers can learn more here.
— Zavier Ong
CNBC Pro: Morgan Stanley Turns Bullish on Chinese Stocks, Giving Them Serious Upside Potential
Morgan Stanley has turned bullish on Chinese stocks for the first time in nearly two years as the country embarks on a “clear path to reopening”.
“We see a strong climb from here following the extreme underperformance of the past two years,” the bank said, although it warned that the road to recovery “will be bumpy”.
Morgan Stanley has highlighted a list of names it believes will benefit from the easing in China, two of which yielded a rise of around 130%.
CNBC Pro subscribers can learn more here.
European markets: here are the opening calls
European markets are heading for a lower open on Tuesday as global sentiment is generally pessimistic this week.
Britain’s FTSE index is expected to open down 7 points to 7,549, Germany’s DAX down 24 points to 14,423, France’s CAC down 18 points to 6,678 and Italy’s FTSE MIB down 47 points to 24,574, according to IG data.
Data releases include Germany’s industrial orders for October. There are no significant gains.