Open to close, stocks, data, earnings and news

Open to close, stocks, data, earnings and news
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Eurozone PMI falls to 20-month low as recession outlook rises

Euro zone business activity fell more than expected last month, raising the likelihood of a recession in the 19-member common currency bloc.

S&P Global’s euro zone final composite PMI (purchasing managers’ index), considered a reliable gauge of economic health, fell to a 20-month low of 48.1 in September from 48.9 in August, down from a preliminary estimate of 48.2. Any reading below 50 indicates shrinkage.

-Elliot Smith

Stocks on the move: Nordnet down 6%, Avanza down 5% after September figures

Swedish financial services companies Keep it up Y nordnet it fell 5% and 6%, respectively, in early trading after releasing its monthly figures for September.

At the top of the Stoxx 600, German chipmaker Infineon gained 4%.

More German companies plan price increases, says Ifo Institute

More German companies plan to raise prices next month, according to a new survey by the Ifo Institute published on Wednesday.

Economy-wide price expectations for the month ahead hit 53.5 points in September, down from 48.1 in August seasonally adjusted. The food price indicator stood at a full 100 points, down from 96.9 in August.

“Unfortunately, this probably means that the wave of inflation is not going to subside,” says Timo Wollmershäuser, head of forecasts at Ifo.

“Especially when it comes to gas and electricity, the price pipeline is not exhausted yet.”

-Elliot Smith

CNBC Pro: Bank of America reveals its global picks for this quarter, giving one stock more than 100% up

Interest rate hikes, rising energy prices and political turmoil in some parts of the world have hit stocks heading into the final quarter of this year.

To help investors navigate the volatility, Bank of America has revealed its top “short-term stock recommendations” for the coming quarter, which it expects to “significantly outperform” peers.

CNBC Pro subscribers can read about five of his stock picks here.

— Ganesh Rao

Dollar index falls back to 110

One factor helping equity markets on Tuesday could be a slightly weaker dollar, which is falling for the fifth day in a row.

The DXY US dollar currency index was down 1.5% in afternoon trading at 110.06. The index traded as high as 114.78 last week, when there were concerns about a UK government bond market failure.

Sterling and the euro each traded more than 1% against the dollar on Tuesday. The dollar also fell against the Japanese yen.

—Jesse Libra, Gina Francolla

CNBC Pro: Market Heads For ‘Best Week Of The Year’, Pro Says, And Names 2 Stocks To Play It

Market veteran Phil Blancato, whose firm has more than $4 billion in assets under management, said he expects next week to be a “turnaround week” for the markets.

Investors should seize the opportunity to “jump into the market,” he said, naming two stocks to take advantage of the rally ahead.

Professional subscribers can read more here.

—Xavier Ong

Stifel’s Barry Bannister says there is ‘room for a rally’ after two straight days of gains

Stifel’s chief equity strategist Barry Bannister said shares may advance further after this week’s strong two-day rally.

“I don’t think you have to worry about a recession until the second half of 2023,” Stifel’s chief equity strategist Barry Bannister said on CNBC’s “Closing Bell: Overtime” on Tuesday. “So there is room for a rebound early next year.”

The strategist said there could be a “conditional pause” at the December meeting while the Federal Reserve reviews the impact of its interest rate hike plan on inflation.

“All the leading indicators of inflation are falling, global liquidity is down quite a bit. They don’t want to kill the patient to cure the disease,” Bannister said. “And if the data went its way, then the pause would last, and if the data didn’t go its way, it would go back up and we would go back down.”

—Sarah Min

CNBC Pro: This is not the bottom of the market, says Morgan Stanley, naming 3 things that have to happen first

There is unlikely to be a sustainable market fund unless three conditions are met, according to Morgan Stanley.

“We…remind readers that the late entries of every bear market are very difficult to trade as volatility becomes extreme,” they wrote. “None of the conditions that we’ve been looking for to end this bear market have come to pass.”

Professional subscribers can read more here.

— Weizhen Tan

European markets: here are the opening calls

European stocks are headed for a lower open on Wednesday, bucking a positive trend seen in the previous session.

UK’s FTSE Index is expected to open 27 points lower at 7,059, Germany’s DAX 59 points lower at 12,606, France’s CAC 40 25 points lower at 6,005 and Italy’s FTSE MIB 112 points. down to 21,426, according to IG data.

The expected declines on Wednesday come after European markets rose yesterday, with the pan-European Stoxx 600 close 3% higher. Travel and leisure stocks rose 6.1% to lead gains as all sectors and major stocks entered positive territory.

the british pound rose on Tuesday after the UK radical change in government policy and Britain’s sovereign bond yields also fell after a sharp sell-off last week.

Data released on Wednesday includes final Eurozone PMI data for September and German import and export data for August. Profits come from Tesco and Bang & Olufsen.

— Holly Elliott

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