CNBC Pro: Wall Street giants share when global stock markets are likely to hit bottom, and by how much
Several major financial institutions are now predicting a significant decline in global stock markets as stock prices continue to rise.
of S&P500 Index It has risen more than 10% since its low in October last year. in Europe, Stocks 600 increased by more than 15% over the same period.
But those gains are now at risk as the delayed impact of monetary tightening is likely to hit earnings and cause margin compression this year, according to some investment banks.
CNBC Pro subscribers can read about when and how likely the market is to bottom here.
— Ganesh Rao
CNBC Pro: Want to profit from China’s economic reopening? Bank of America and UBS have some low profile stocks
Stocks in certain key sectors directly related to China’s reopening, such as domestic consumption and travel, have performed well in recent months.
Investors looking to get into these stocks may find current valuations unacceptable.But there may be another way to play out reopening, with Bank of America and UBS We have identified a number of beneficiaries that are less visible outside of China.
Pro subscribers can read more here.
— Xavier Ong
Germany’s IFO says business sentiment is bright, no tech recession expected
Business sentiment in Germany picked up this month, according to a widely watched survey by the Munich-based IFO Institute.
The group’s Doing Business Index rose from 88.6 to 90.2 points on “very less pessimistic forecasts”, although below the levels of 2021 and early 2022. Companies in the service sector also report low levels of satisfaction with the status quo.
However, the manufacturing sector showed improvement in current satisfaction and future optimism, and trade sentiment improved.
“We were expecting a possible recession in the fourth quarter of 2022 and the first quarter of 2023. Now it looks like the fourth quarter is flat,” IFO President Clemens Festo said on CNBC. told Arabile Gumede of
“The economy may still contract a bit in the first quarter, but given the improvement in expectations we’re currently seeing from businesses, a technological downturn is very unlikely.”
— Jenny Reid
CNBC Pro: Lithium is having a strong year — and China’s economic reopening will boost the stock, analysts say
One analyst said the electric-vehicle industry has picked up, especially in the second half of the year, thanks to China’s reopening of the economy.
Corinne Blanchard, Vice President of Lithium and Cleantech Equity Research at Deutsche Bank, names one of the most important stocks.
CNBC Pro subscribers can read more here.
— Tan Weizhen
European Market: Click here for the opening call
European markets are headed for Thursday’s open, building on the positive momentum seen in the previous trading session.
Markets this week are supported by data showing improved business confidence in Germany and increased service and manufacturing activity in the Eurozone.
British FTSE100 The index is expected to open 20 points higher at 7,760 in Germany. Dax 80 points higher than France’s 15,158 CAC Italy’s FTSE MIB IG’s data shows it’s 94 points higher at 26,053.
Revenue will come from LVMH, STMicro, Diageo, Superdry and Banco Sabadell. Italian consumer confidence data for January will also be released.
— Holly Eliyat
