This is CNBC’s live blog covering the European markets.
European markets are headed for a lower open on Thursday as investors prepare for the latest monetary policy decision from the European Central Bank.
The central bank is expected to keep interest rates at their current record highs after the monetary policy meeting on Thursday. Markets expect a roughly 60% chance of a first interest rate cut in April, according to a Reuters analysis of LSEG data.
European markets traded higher on Wednesday after Eurozone composite PMI data for services and manufacturing indicated a rise in business activity in the single currency area, giving investors a boost ahead of the European Central Bank meeting. Meanwhile, UK PMI numbers rose in January to their highest level in seven months.
CNBC Pro: Analysts love these biotech stocks, giving 4 more than 100% upside
The healthcare sector may have performed poorly in the last couple of years, but analysts are bullish on it now, citing biotechnology as an area to watch.
“Just two weeks into 2024, the healthcare sector has shrugged off the label of notable lag in 2023,” Citi said in a recent note.
To find biotech stocks that have performed well in the past year and that analysts remain positive on, CNBC Pro examined the iShares Biotechnology ETF and the SPDR S&P Biotech ETF.
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-Weezin Tan
CNBC Pro: ASML and more: UBS names 10+ global stocks to play now
Europe is bracing for a “soft recession” that will weaken the market, but several sectors and stocks stand out for UBS as good plays this year as growth stabilizes and inflation slows.
The Swiss Investment Bank expects growth in Europe to stabilize at 0.6% this year, with global growth falling to 2.6%. This is a conservative estimate compared to the 1.2% growth rate set by the International Monetary Fund.
“Our overall outlook for Europe is for a weak recession that drags European stocks modestly lower but provides another year of actionable divergences between sectors and stocks,” UBS analysts wrote as they identified the sectors – and more than 10 stocks –.
CNBC Pro subscribers can read more here.
– Amala Balakrishner
European Markets: Below are the opening calls
European markets are scheduled to open lower on Thursday.
The UK’s FTSE 100 is expected to open 25 points lower at 7,508, Germany’s DAX is down 39 points at 16,853, France’s CAC is down 16 points at 7,440, and Italy’s FTSE MIB is down 79 points at 30,418, according to data from IG.
Profits come from LVMH and Givaudan.
– Holly Eliatt
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