Sweden’s central bank launches 100 basis point rate hike, says ‘inflation is too high’
Sweden’s Riksbank launched a 100 basis point hike on Tuesday to interest rates, taking his main policy rate to 1.75%, as he warned that “inflation is too high”.
In a statement, the central bank said runaway inflation was “undermining the purchasing power of households and making it difficult for both businesses and households to plan their finances.”
-Elliot Smith
German producer prices soar 45.8% year-on-year in August
Germany’s producer price inflation reached 45.8% year-on-year in August, the federal statistics office said on Tuesday, fueled by rising energy prices.
The reading far exceeded the Dow Jones consensus forecast of 37.9%, while on a monthly basis, the producer price index rose 7.9% vs. a 1.6% forecast.
However, the PPI reading without energy was 0.4% monthly and 13% annual.
-Elliot Smith
Stocks on the move: Bachem holding 13%, Future down 12%
There were some big moves in the share price in early European trading. Swiss biotech company Bachem holding surged 13% to lead the Stoxx 600 after signing two new peptide contracts.
british media company Future PLC plunged more than 12% after Sky News reported Monday that chief executive Zillah Byng-Thorne intends to step down in 2023.
-Elliot Smith
CNBC Pro: Fund Manager Says Bear Market Will Get ‘Nasty’
Fund manager Cole Smead believes the stock market is still in the early innings of a bear market, warning it won’t be a “garden variety.”
But, he’s not losing sleep over it. This is why:
Professional subscribers can read more here.
—Xavier Ong
Stocks close volatile Monday session higher
Stocks saw a saw through on Monday, but ended the session in positive territory as a great week for the Fed began.
The Dow Jones Industrial Average closed 197.26 points higher, or 0.64%, to settle at 31,019.68. The S&P 500 jumped 0.69% to 3,899.89 and the Nasdaq Composite gained 0.76% to 11,535.02.
—Samantha Subin
CNBC Pro: Goldman says demand for copper is poised to pick up. These are the actions you hope to benefit
A copper shortfall could be on the horizon, with demand set to rise in the push towards net zero, and some metal stocks could shine in this scenario, according to Goldman Sachs.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: here are the opening calls
European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.
The UK’s FTSE index is expected to open 47 points lower at 7,341, Germany’s DAX 86 points lower at 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB down 132 points. drops to 22,010, according to IG data.
Global markets have retreated after a higher than expected result US Consumer Price Index August report showing prices rose 0.1% monthly and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying economists’ expectations that headline inflation would fall 0.1 % monthly.
The core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.
UK inflation figures are expected for August and Eurozone industrial production for July will be released.
— Holly Elliott
