European markets open to close, US inflation data

Stocks on the move: Sweco down 7%, Taylor Wimpey down 5%

Swedish engineering firm Sweco fell more than 7% to the bottom of the Stoxx 600 in early deals, while Taylor Wimpey fell more than 5% to spark a wide-ranging sell-off for UK homebuilders.

Wed, Aug 17 202212:29 EDT

European markets: these are the opening calls

European markets are heading for a lower open on Thursday as investors around the world prepare for the latest US inflation data.

The UK’s FTSE index is expected to open 12 points lower at 6,812, Germany’s DAX 41 points lower at 12,150, France’s CAC 23 points lower at 5,803 and Italy’s FTSE MIB 40 points lower at 20,324, according to data from IG.

The lower open in Europe comes amid mixed global sentiment ahead of the most recent inflation reading in the US. US stock futures were up slightly overnight, while markets in the Asia-Pacific region were mixed as investors waited for the data.

Dow Jones consensus estimates show that the CPI rose 0.3% in September, from 0.1% in August. That would bring the annual inflation rate from 8.3% to 8.1%.

A rise in the consumer price index would also follow higher-than-expected producer price data, it emerged on Wednesday. The US Producer Price Index, a measure of wholesale prices for ultimate demand, rose 0.4% in September, ahead of the consensus estimate of a 0.2% increase, according to Dow Jones.

Markets processed minutes released Wednesday from the Federal Reserve’s September meeting, which showed that the central bank expected to continue raising interest rates until it sees a decline in inflation.

One comment made some think the Fed would instead slow, if not reverse, rate hikes if the turmoil in financial markets continues.

On the data front in Europe, Germany publishes its final inflation data for September.

— Holly Ellyatt

CNBC Pro: Goldman Sachs favors Tesla and another major automaker, even during an economic slowdown

Goldman Sachs raised its forecasts for electric car sales, saying Tesla and another major automaker will benefit from the Inflation Reduction Act.

It comes at a time when the auto sector will face multiple headwinds in 2023, from rising interest rates to a slump in consumer demand.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Fed minutes show central bank sees more rate hikes, higher rates for longer

Minutes from the September meeting of the Federal Reserve, released Wednesday, show that the central bank expects to continue raising and holding interest rates higher until inflation shows signs of slowing down.

The minutes reflect policymakers’ discussions ahead of the latest 0.75 percentage point increase, the third consecutive increase of that magnitude this year.

The central bank has been surprised by the continued pace of inflation, but remains optimistic that interest rate hikes will help bring price increases back under control.

—Carmen Reinicke, Jeff Cox

CNBC Pro: Is Meta a Stock to Buy or Avoid? A bull and a bear face each other

These are tumultuous times for Meta, with investors fleeing this year as it struggles with headwinds.

The stock collapsed in late September to trade at its lowest point since January 2019 — and has fallen even more since then.

Now that the stock is so cheap, do major investors consider the Facebook parent company a buy, or is it something to avoid?

CNBC’s “Street Signs Asia” spoke with Paul Meeks of Independent Solutions Wealth Management and Jake Dollarhide of Longbow Asset Management as they compete to make their bull-and-bear case for Meta.

Pro subscribers can read more here.

— Weizhen Tan

Stocks close lower after choppy session

All three major averages closed lower Wednesday after bouncing back and forth between gains and losses throughout the day.

The S&P 500 lost 0.33%, falling to 3,577.03, its lowest close since November 2020 and its sixth consecutive daily loss.

The Dow Jones Industrial Average lost 28.34 points, or 0.10%, to close at 29,210.85. The Nasdaq Composite fell 0.09% and closed at 10.417.10.

—Carmen Reinicke

Supply hyperlink

Leave a Comment