European markets open at close, investors focus on next Fed move

US stocks open lower ahead of Fed meeting

US stocks fell on Wednesday ahead of the Federal Reserve’s latest rate decision.

The Dow Jones Industrial Average was down 0.3% in early trades, while the S&P 500 was down 0.4%. The Nasdaq Composite was also 0.45% lower.

The Fed is expected to announce a 0.75 percentage point rate hike after its policy meeting on Wednesday.

— Karen Gilchrist

Stocks in motion: Maersk down 7%, Vestas up 7%

Danish hearing care company Demant fell more than 12% in the early afternoon to the bottom of the Stoxx 600 after its preliminary third-quarter earnings report.

Maersk, the world’s largest container shipping company, saw its shares tumble more than 7% after posting record third-quarter profits due to high ocean freight rates, but noted a slowdown in demand.

Leading the European blue chip index, Vesta Shares jumped more than 7% after the Danish wind company’s earnings call helped ease market concerns over its earlier report.

-Elliot Smith

Spanish manufacturing industry falls sharply in October

Spanish factory activity contracted sharply in October, its fourth straight month of contraction, as high inflation sent output and new orders plunging.

The S&P Global manufacturing PMI (Purchasing Managers Index) fell to 44.7, its lowest level since May 2020, from 49.0 in September. Any reading below 50 represents a contraction.

-Elliot Smith

World’s largest container shipping company Maersk, a global trade barometer, warns of ‘dark clouds on the horizon’

Maersk, the world’s largest container shipping company, posted record third-quarter profits on Wednesday on strong ocean freight rates, but noted slowing demand.

The Danish giant, widely regarded as a barometer of global trade, reported earnings before interest, tax, depreciation and amortization (EBITDA) of $10.9 billion for the quarter, above analyst consensus projections of 9 .8 billion and up about 60% from the same period a year ago.

CEO Søren Skou said this year’s “outstanding results” were due to a continued increase in ocean freight rates, but said it was clear these had peaked and warned of “dark clouds on the horizon”.

Read the full story here.

-Elliot Smith

Stocks on the move: Straumann up 4%, Demant down 11%

Corporate earnings remain a key driver of individual stock price developments in Europe.

Danish Hearing Care Society Dismantling fell more than 11% in early trade to the Stoxx 600 low after its preliminary third-quarter earnings report.

At the top of the index, the Swiss dental equipment manufacturer Straumann gained 4% after its quarterly results.

Bank of England plans biggest rate hike in 33 years, but economists expect dovish tilt

The Bank of England is expected to raise rates by 75 basis points on Thursday, its biggest hike since 1989.

Vuk Valcic | SOPA Images | Light flare | Getty Images

Oil futures rise after industry report on falling US crude inventories

Oil futures prices rose on Wednesday after industry reports showed a drop in U.S. crude inventories over the past week, Reuters reported, citing figures from the American Petroleum Institute on Tuesday.

Brent futures gained $1.31, or 1.46%, to settle at $95.87 a barrel, while United States West Texas Intermediate rose 1.28% to $89.67 a barrel.

— Lee Ying Shan

CNBC Pro: Buy this automaker to meet massive pent-up demand in the U.S., fund manager says

According to fund manager Steven Glass, demand for cars is huge in the United States and China.

He named an auto stock to cash in, which he said has a “very well managed” balance sheet and a 20-year low price-earnings ratio.

Pro subscribers can learn more here.

— Zavier Ong

A Fed pivot is a long way off, says New York Life’s Goodwin

Investors might be a little too excited about potential changes to the Federal Reserve, according to Lauren Goodwin, economist and portfolio strategist at New York Life Investments.

Goodwin said in a note that she expected the Fed to hike 0.75 percentage points on Wednesday and half a point in December, but the slowdown shouldn’t be seen as the start of a a big change from the central bank.

“A Fed pause is not the same as a pivot. While deteriorating economic and credit conditions may cause the Fed to pivot modestly at some point, a full pivot into dovish territory is highly unlikely. next year,” Goodwin said in a statement. Remark.

Goodwin pointed out that the first rate hikes should now start to show their impact on the broader economy, rather than just housing. However, the Fed will need several months of data to work its way through before changing course.

“At this point, with inflation as surprising as it has been before, the Fed will want to see clear signs of reversal in wage growth before pivoting. Recession should be seen as a base case scenario rather than ‘a risk,'” Goodwin said.

—Jesse Pound

CNBC Pro: Goldman’s Currie reveals ‘best’ hedge against inflation, rate hikes and geopolitical risks

Goldman’s Jeff Currie says there is an investment that can protect investors against rising interest rates, inflation and geopolitical risks.

Currie, global head of commodities research at Goldman Sachs, said he had 20-30% upside potential in the near term, with additional upside risks to the price target.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

European markets: here are the opening calls

European markets are eyeing a positive start to trading on Wednesday as investors brace for the latest monetary policy decision from the U.S. Federal Reserve.

Many analysts expect the meeting to result in an interest rate hike of 75 basis points. Investors will also be watching the central bank’s statement and Fed Chairman Jerome Powell’s press conference for signs that the pace of tightening is slowing.

London’s FTSE index is expected to open 21 points higher at 7,115, Germany’s DAX 84 points at 13,422, France’s CAC 36 points at 6,364 and Italy’s FTSE MIB 119 points at 22,771, according to the data. of IG.

Earnings will come from Next, Aston Martin Lagonda, GSK, Metro and Maersk. German unemployment data for October will also be released.

—Holly Ellyatt

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