Stocks on the go: Adidas rises 20%, Leonardo drops 7%
German sportswear brand Adidas jumped 20% to top the Stoxx 600 list in Friday afternoon deals after announcing a new collaboration following its split from artist Kanye West.
On the other hand, shares of Italian aerospace and defense company Leonardo fell 7% after issuing full-year guidance on Thursday.
Karen Gilchrist
US stocks open higher
US stocks opened higher on Friday as investors digested the October jobs report and its potential impact on future interest rate hikes.
The Dow Jones Industrial Average is up 1.1% in early trades while the S&P 500 is up 1.2%. The Nasdaq Composite Index is also up 1%.
Karen Gilchrist
Lagarde: ECB may tighten policy faster if high inflation continues
European Central Bank President Christine Lagarde said in a speech in Estonia on Friday that the European Central Bank is ready to tighten monetary policy more aggressively if record high inflation continues and expectations rise.
“If we are going to see, for example, inflation becoming more stable and the outlook at risk of reversing, we cannot wait for the full impact of the policy measures to materialize,” Lagarde said.
“We will need to take additional measures to be more confident that inflation will return to the target in time.”
– Elliot Smith
Jobs report ‘nail in the coffin’ pivotal Fed hopes
Friday’s strong US jobs report was “another nail in the coffin” of hopes in the dovish monetary policy pivot from the US Federal Reserve, according to Ron Temple, head of US equities at Lazard Asset Management.
“The US economy continues to create far more jobs than population growth can accommodate, putting further upward pressures on wages and prices,” Temple said.
“The Fed has attacked the inflation challenge aggressively, but it will have to stay on the offensive as long as labor markets remain resilient.”
– Elliot Smith
US salaries rose 261,000 in October
Bank of England chief economist warns of ‘hard tradeoffs’ for inflation to reach 2%
How Bell, Chief Economist at the Bank of England discusses the central bank’s recent rate hike and the difficult balancing act of tightening monetary policy along with economic risks.
Eurozone data deepens fears of winter recession
The latest reading of the Eurozone S&P Global PMI (Purchasing Managers’ Index) – seen as a reliable measure of economic health – painted a bleak picture on Friday as rising inflation and fears of a worsening energy crisis hampered demand.
The final reading of the composite PMI – which captures services and manufacturing – fell to a 23-month low of 47.3 in October, down from 48.1 in September, with anything below 50 indicating a contraction. However, the reading was slightly higher than the initial estimate of 47.1.
– Elliot Smith
Stocks on the move: Andretz up 10%, Leonardo down 6%
Although earnings season is over, third-quarter reports remained the main driver of individual stock price action in Europe on Friday.
Andritz Shares jumped 10.8% in the early afternoon to top the Stoxx 600 after the Austrian industrial group significantly beat third-quarter earnings expectations.
At the bottom of the index is a Swedish real estate company SBB It decreased by 8% while the Italian Aerospace and Defense Company Leonardo It fell more than 6% after the third-quarter trading update.
Bank of England chief economist hints that traders are getting it wrong
Chief Economist Howe Bell told CNBC on Friday that the Bank of England remained committed to its “main objective” of lowering inflation, but hoped that markets would “reset” their interest rate expectations.
On Thursday, the central bank raised interest rates by 75 basis points, the largest single increase since 1989, but it also warned of a prolonged recession and indicated that the market’s pricing of future interest rate increases was too high.
What we seek to do, and always strive to do, is to find the balance that brings us back to the 2% inflation target without causing unnecessary and costly problems on the real side of the economy,” Bell said.
Read the full story here.
– Elliot Smith
Here are the opening calls
Britain FTSE 100 A rise of about 11 points is seen at 7,235 points in Germany Dax It is set to rise by almost 8 points to 13,184 points and France CAC 40 It is expected to add about 12 points to 6,284.
– Elliot Smith
Oil prices rise amid the dollar’s decline and speculation of a change in China’s position on Covid
Oil prices rose on the heels of a drop in the US dollar index and speculation that China would ease Covid restrictions.
Brent crude futures contracts It added 2% to stand at $96.56 a barrel, while West Texas Intermediate US It rose 2.21 percent to $90.12 a barrel.
– Lee Ying Shan
CNBC Pro: This tech stock is a ‘stark buy’ now: Ritholtz’s Josh Brown
CNBC Pro: Morgan Stanley says this global stock of biotech could rise 398% next year
Analysts at Morgan Stanley believe that shares of a global biotechnology company could rise 398% in the next year.
The company’s latest regenerative medicine has completed phase two trials in Japan and the United States and is awaiting final approval.
Analysts believe it will be a “significant long-term profit contributor” once approved.
CNBC Pro subscribers can read more here.
– Ganesh Rao
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