Sweden’s central bank starts 100bp rate hike, says ‘inflation is too high’
Sweden’s Riksbank on Tuesday ushered in a 100 basis point interest rate hike, raising its main interest rate to 1.75% as it warned that “inflation is too high”.
In a statement, the central bank said rising inflation “is eroding households’ purchasing power and making it more difficult for both businesses and households to plan their finances.”
Read more here.
-Elliot Smith
German producer prices up 45.8% yoy in August
German producer price inflation hit 45.8% yoy in August, the Federal Statistical Office said Tuesday, driven by rising energy prices.
The reading far beat a Dow Jones consensus forecast of 37.9%, while the monthly PPI rose 7.9% versus a 1.6% forecast.
However, the non-energy PPI was 0.4% for the month and 13% for the year.
-Elliot Smith
Stocks on the move: Bachem Holding up 13%, futures down 12%
There were some big price moves in early European trading. Swiss biotech Bachem Holding rose 13% and topped the Stoxx 600 after signing two new peptide contracts.
British media company Future PLC plunged more than 12% after Sky News reported on Monday that CEO Zillah Byng-Thorne intends to step down in 2023.
-Elliot Smith
CNBC Pro: Fund manager says bear market is getting ‘nasty’
Fund manager Cole Smead believes the stock market is still in the early innings of a bear market – and warns it won’t be a ‘garden variety’.
But he doesn’t lose sleep over it. Here’s why:
Pro subscribers can read more here.
– Zavier Ong
Stocks end Monday’s volatile session higher
Stocks fluctuated Monday but ended the session in positive territory as a big week for the Federal Reserve began.
The Dow Jones Industrial Average closed 197.26 points higher, or 0.64%, to settle at 31,019.68. The S&P 500 was up 0.69% to 3,899.89 and the Nasdaq Composite was up 0.76% to 11,535.02.
— Samantha Subin
CNBC Pro: Goldman Says Copper Demand Will Rise Soon. Here are the stocks she expects to benefit from
A copper deficit could be on the horizon, with demand picking up en route to net zero – and some metals stocks could shine in that scenario, according to Goldman Sachs.
CNBC Pro subscribers can read more here.
— Wheat Tan
Wed Aug 17 2022 12:29 PM EDT
European Markets: Here are the opening calls
European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.
According to data from IG, the UK FTSE index is expected to open 47 points lower at 7,341, the German DAX 86 points lower at 13,106, the French CAC 40 28 points and the Italian FTSE MIB 132 points lower at 22,010.
Global markets retreated after a higher-than-expected U.S. CPI report for August, which showed prices rose 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported on Tuesday, defying economists’ expectations that inflation would fall 0.1% on a monthly basis.
The core CPI, which excludes volatile food and energy costs, is up 0.6% since July and 6.3% since August 2021.
UK inflation figures for August are due and July euro-zone industrial production to be released.
— Holly Ellyatt