The German real estate market is slowing but will see exaggerations: the central bank
A new report from the Bundesbank predicts a slowdown but no major correction in the housing market.
“We see a slowdown in residential property price growth, but it doesn’t mean that the general dynamic has reversed. So we still have an overvaluation in the market,” Claudia Buch, vice president of the Bundesbank, told CNBC.
– Jenny Reed
Stocks on the move: LEG Immobilien up 6%, Bridgepoint up 5%
Shares of LEG Immobilien rose 6.5% to top the Stoxx 600 by mid-afternoon after Morgan Stanley raised the German real estate company’s stock to “overweight” from “equal weight”.
British private investment company Bridgepoint Group jumped more than 5%.
Turkey cut interest rates by 150 basis points and ends the easing cycle
On Thursday, the Turkish Central Bank cut interest rates by 150 basis points to 9% and decided to end the monetary policy easing cycle, citing increased inflation risks.
CBRT [Central Bank of the Republic of Turkey] He is under constant pressure from President Recep Tayyip Erdogan to continue cutting interest rates despite rising inflation, which hit 85.5% year-on-year in October as food and energy prices continue to rise.
“In view of the rising risks with regard to global demand, the committee assessed that the current policy rate is appropriate and decided to end the cycle of interest rate cuts that began in August,” the central bank said in a statement.
Read the full story here.
– Elliott Smith
Ifo Institute says German economic sentiment improved in November
The Ifo institute’s German business climate index rose to 86.3 in November from 84.5 in October.
“While companies were somewhat less satisfied with their current business, pessimism about the coming months has declined sharply. The recession may be less severe than many expected,” said IFO President Clemens Fuest.
Foest explained that the index jumped significantly in manufacturing, as companies were less pessimistic about the future, but assessed their current situation as worse.
“The number of new orders decreased again. While uncertainty about future business development remains high, it has decreased slightly. But in energy-intensive industries, uncertainty has increased even more,” he said.
– Elliott Smith
Sterling broke above $1.20 as the dollar weakened amid expectations of a softer Fed hike
Sterling pound It broke above the key level of $1.20 Wednesday night as U.S. dollar It eased in response to weak PMI (Purchasing Managers Index) data and minutes from the latest Fed policy meeting.
The pound rose another 0.3% in early trading Thursday to trade at around $1.209, while the euro and the Japanese Yen It also gained strength against the declining dollar.
Bulgari says wealthier consumers are continuing to spend despite growing fears of a recession
Jean-Christophe Babin of Italian luxury fashion house Bulgari Group says that while demand for entry-level products tends to contract in times of recession, high-income consumers still have disposable income.
Stocks on the Go: Elekta Down 4%, UMG Stock Up 3%
Share price action was muted throughout the European blue-chip index on Thursday morning.
Swedish manufacturer of radiotherapy equipment Elekta It slid more than 4% to the bottom of the Stoxx 600 after it missed expectations for second-quarter earnings.
at the top of the index, Universal Music Group pay 3.3% higher.
– Elliott Smith
CNBC Pro: Betting on British supermarket, short sellers expect nearly 50% collapse in share price
There is more pain to come for investors in a UK supermarket company if the short seller’s expectation comes true.
The hedge fund is currently holding a £32.6m bearish bet and expects shares in the grocery to fall by 44%.
The fund’s chief investment officer also believes that the supermarket will raise new capital by diluting shareholders year after year to keep itself afloat in a challenging environment.
CNBC Pro subscribers can read more here.
– Ganesh Rao
CNBC Pro: The asset manager says investors should buy these great stocks right now
There’s one big-cap stock that investors should buy right now, according to Rob Luna, chief investment strategist at asset management firm Surevest.
He describes its CEO as a “big visionary”.
While Luna picked one big stock, he generally advised investors to reallocate to smaller names, naming two stocks he described as “best in breed.”
CNBC Pro subscribers can read more here.
– Wizen tan
European Markets: Below are the opening calls
European markets are heading for a higher open on Tuesday as investors in the region appear to shrug off concerns among their US and Asia-Pacific counterparts about China’s tightening of Covid restrictions, which continues to put pressure on production.
The UK’s FTSE is expected to rise 27 points at 7,407, Germany’s DAX is up 33 points at 14,419, France’s CAC is up 20 points at 6,653, and Italy’s FTSE MIB is up 70 points at 24,433, according to data from IG.
Data releases include preliminary consumer confidence data for the Eurozone in November.
– Holly Ellytt
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