Stocks in motion: Ocado up 7%, Avanza down 7%
Shares of the British online grocer ocado climbed more than 7% to lead the Stoxx 600 by mid-afternoon after Evercore ISI raised its price target for the stock.
At the bottom of the index, Sweden Avanza Bank fell 7% after weak monthly data in December.
-Elliot Smith
UK will do worst of major developed economies in 2023, strategist says
Seema Shah, chief strategist at Principal Global Investors, expects a tough start to 2023 for the UK as household savings fall and the effects of rate hikes are felt.
French inflation slows unexpectedly
The skyline of the Arc de Triomphe in Paris, France.
Bloomberg | Bloomberg | Getty Images
Inflation in France slowed to 6.7% in December from a record high of 7.1% the previous month, preliminary data shows The figures released the Wednesday morning show.
Economists polled by Reuters had forecast consistent year-on-year inflation, which is adjusted for eurozone comparisons, at 7.2%.
The largest decline was in energy, where prices rose 15.1% year on year, down from 18.4% in November.
This follows a more than expected slowdown in inflation in Germany, which was reported on Tuesday. HICP falling to 9.6% from 11.3%; and in Spain, which recorded a drop last week to 5.8% from 6.7%.
Analysts are looking for indications that inflation has peaked in major eurozone economies; and whether this will influence the European Central Bank, which previously said interest rates should rise “significantly”.
ING analysts said the path to a substantial drop in inflation rates would not be easy and remained dependent on energy markets and agricultural challenges impacting food prices.
“[Germany’s] The inflation figures are not a relief, but only a reminder that eurozone inflation is still primarily an energy price phenomenon,” they said in a note. “The ECB cannot not and will not base policy decisions on highly volatile energy prices”.
Italy will report inflation figures on Thursday, followed by a flash estimate for the eurozone on Friday.
—Jenni Reed
Swiss annual inflation at 2.8% in 2022
Swiss consumer prices rose 2.8% year-on-year and fell 0.2% from December, the Federal Statistical Office said today.
He found that Swiss inflation averaged 2.8% in 2022, down from 0.6% in 2021. He attributed the annual rise to rising costs for petroleum products, gasoline, cars and rental of houses, which compensated for the fall in the prices of medicines and fixed and mobile communications.
Stocks on the move: BKW up 4%, Tenaris down 5%
CNBC Pro: Analysts See These 10 Global Renewable Energy Stocks Rise Despite Higher Rates, With One Offering a 50% Upside
Soaring energy prices have spurred investment in renewable energy across the world.
Swiss investment bank UBS has named 10 prominent renewable energy players who are capitalizing on the trend and expected to perform over the next year.
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—Ganesh Rao
CNBC Pro: Wall Street bullish on this chip giant, Morgan Stanley giving it 55% upside
The once-hot chip sector has suffered in 2022, but Wall Street appears to be getting more bullish on semiconductor stocks for the year ahead.
Recently, several pros have urged investors to have a longer-term vision of the sectorgiven the importance of chips in several key secular trends.
Analysts have named one particular stock they are bullish on, citing its earnings potential and future profitability.
CNBC Pro subscribers can learn more here.
—Weizhen Tan
The United States will avoid recession in 2023, according to Goldman Sachs
Goldman Sachs has a non-consensus forecast for the US economy in 2023.
“Our economists continue to believe that the United States will avoid recession as the Fed successfully engineer a soft landing for the economy,” analysts wrote Tuesday.
“This non-consensus forecast partly reflects our view that a period of below-potential growth is sufficient to gradually rebalance the labor market and ease wage and price pressures,” the note said. “But it also reflects our analysis which indicates that the drag on fiscal and monetary policy tightening will decline sharply next year, contrary to the consensus view that the lagged effects of interest rate hikes will lead to a recession in 2023. .”
Additionally, the bank today raised its 4Q22 GDP growth forecast by 10 basis points to +2.1% on the back of a surprisingly strong November construction spending release.
“The disconnect between the resilience of the U.S. economy in 2022 and the decline experienced by equities is a key narrative of the past year,” Goldman said. And, whether this disconnect continues, whether the economy matches the market decline, or whether the market rebounds from a soft landing in the economy, that can at least be part of the 2023 narrative.
—Carmen Reinicke
CNBC Pro screens low-volatility stocks amid fears of bumpy ride ahead
Stock markets endured a horrible 2022 as major indexes posted their worst performances in more than a decade.
As market pros warn investors of bumpy times aheadCNBC Pro used FactSet data to select low-volatility stocks that not only beat the market in 2022, but are expected to rise further this year.
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— Zavier Ong
European markets: here are the opening calls
European markets head for a higher open on Wednesday as investors await the final minutes from the U.S. Federal Reserve, looking for signs of interest rate hikes to come.
The United Kingdom FTSE100 the index is expected to open 11 points higher at 7,570, Germany DAX 28 points more at 14,227, France CAC up 9 points to 6,643 and Italy MIB FTSE up 31 points to 24,449, according to IG data.
In Europe on Tuesday, markets closed higher, buoyed after Germany released lower-than-expected December inflation figures at 9.6% year-on-year. Inflation figures in France are expected on Wednesday.
—Holly Ellyatt
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