CIO says there’s “almost 100% certainty” a recession will happen in the US this year
“The Biden team needs to look at the numbers because they clearly don’t know what they’re talking about,” says James Morton, chief information officer at Santa Lucia Asset Management.
Stocks on the Go: Sartorius rose 8%, Diageo down 5%
Corporate earnings were the main driver of individual stock price movement in Europe on Thursday morning.
Shares of a German pharmaceutical company Sartorius rose 8% after the full-year earnings report, while the British alcoholic beverages giant Diageo It slid 5% to the bottom of the Stoxx 600 after first-half results.
CNBC Pro: Wall Street’s big firms get involved when and how much global stock markets drop
As stocks continue to rise, many major financial institutions are now anticipating a major downturn in global stock markets.
the S&P 500 index It is up more than 10% since its lows in October last year. in Europe , Stokes 600 It increased by more than 15% over the same period.
But according to some investment banks, those gains are now at risk as they fear the late effects of monetary tightening will hit profits and put pressure on margins this year.
CNBC Pro subscribers can read when and how much the market is likely to drop here.
– Ganesh Rao
CNBC Pro: Want to take advantage of China’s reopening? Bank of America and UBS have some less obvious stock picks
Stocks in some 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 them unpalatable at current valuations. But there may be another way to play with reopening, with Bank of America and UBS After identifying a group of beneficiaries that are less visible outside of China.
Professional subscribers can read more here.
– Xavier Ong
German Ifo says business sentiment is brighter, and no tech recession is expected
German business sentiment rebounded this month, according to a widely monitored survey from the Munich-based Ifo institute.
The group’s business climate index rose to 90.2 points from 88.6 points, a statement said, on the back of “significantly less pessimistic expectations”, although this was lower than its level in 2021 and early 2022. Firms operating in the services sector also reported less satisfaction with their situation. Present.
However, manufacturers indicated improved current satisfaction and future optimism, and improved sentiment towards trade.
“The expectation was that there might be a recession in the fourth quarter of ’22 and the first quarter of 2013. It now appears that the last quarter has been flat,” Ifo president Clemens Fuest told CNBC.
“The economy may still contract a little bit in the first quarter, but given the improvement in expectations we’re seeing now from businesses, it’s very unlikely that we’ll see a technical recession.”
– Jenny Reed
CNBC Pro: Lithium had a strong year ahead — and reopening China will boost this stock, analyst says
Things are looking up for the electric vehicle industry, one analyst says, thanks to China’s reopening — particularly in the second half of the year.
Corinne Blanchard, vice president of equity research for lithium and clean technology at Deutsche Bank, picks one of the best stocks.
CNBC Pro subscribers can read more here.
– Wizen tan
European Markets: Here are the opening calls
European markets are set to open higher on Thursday, building on the positive momentum seen in the previous trading session.
Markets rallied on data released this week which showed an improvement in trade sentiment in Germany and an increase in Eurozone services and manufacturing activity.
United kingdom FTSE 100 index The index is expected to open up 20 points at 7760, the German Dax 80 points higher at 15,158 in France kk Italy rose 32 points at 7075 FTSE MIB 94 points higher at 26,053, according to data from IG.
Profits come from LVMH, STMicro, Diageo, Superdry and Banco Sabadell. Italian consumer confidence data for January will also be released.
– Holly Ellytt
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