8 hours ago
US stocks open slightly higher
This is how the most important indices opened on Thursday:
—Pia Singh
8 hours ago
Fed Chairman John Williams believes interest rates have been high “for some time.”
New York Federal Reserve President John Williams said Thursday he expects the central bank will need to keep interest rates at a “restrictive” level to bring inflation back to target.
“I expect that it will be appropriate to maintain a hawkish stance for an extended period to fully restore balance and sustainably bring inflation back to our longer-term target of 2 percent,” Williams said in prepared remarks.
However, he also said he believes the Fed is “at or near the peak” at which it needs to set the federal funds rate, the central bank’s benchmark rate for short-term lending. Williams added that he expects inflation to fall to about 2.25% in 2024 before returning to target the following year.
–Jeff Cox
11 hours ago
The euro falls after euro zone inflation fell more than expected
The euro was lower against the British pound and the U.S. dollar after inflation in the euro zone came in at 2.4%, below the 2.7% level forecast by economists polled by Portal.
The euro was down 0.55% against the greenback at $1.091 at 11:35 a.m. London time and was 0.06% lower against the pound at 0.863, as investors assessed figures for possible interest rate cuts from the European Central Bank mean next year.
Joe Tuckey, head of foreign exchange analysis at Argentex Group, said central banks’ recent forecasts for average inflation of 3.2% in 2024 and 2.1% in 2025 may not be too high and that the latest readings are a “Challenging situation for everyone” represents remaining ECB hawks.”
New forecasts are expected at the ECB meeting in mid-December.
“Markets are now starting to price in an April cut and price action for EURUSD in the coming weeks will be partly determined by the ECB’s rate cut timing compared to that of the Federal Reserve,” Tuckey said in emailed comments.
See grafic…
Euro-dollar exchange rate.
13 hours ago
Unemployment in Germany rises in November
The number of unemployed people in Germany rose by a seasonally adjusted 22,000 in November, the employment office announced on Thursday and amounts to around 2.702 million.
This was in line with the expectations of analysts previously polled by Portal.
The unemployment rate, also seasonally adjusted, was 5.9% in November, compared to 5.8% in October.
— Sophie Kiderlin
14 hours ago
European markets opened higher on the last day of November
European markets opened higher on the last day of the month, but sectors were mixed.
Oil and gas stocks recently rose by almost 1%, while chemical stocks fell by around 0.4%.
The Stoxx 600 index was up about 0.14% at 8:15 a.m. London time, just shy of a 6% gain for the month of November.
— Sophie Kiderlin
14 hours ago
Inflation in France slows, GDP falls in the third quarter
French inflation rose 3.4% on an annual basis in November, the National Institute of Statistics and Economic Studies said on Thursday.
This represented a slowdown from the previous month’s figure of 4%.
Compared to the previous month, inflation fell slightly by 0.2% in November.
The data also showed that the French economy contracted slightly in the third quarter, with gross domestic product falling by 0.1%.
— Sophie Kiderlin
15 hours ago
German retail sales are rising more than expected
As the Federal Statistical Office announced on Thursday, German retail sales rose by 1.1 percent in October compared to the previous month.
That’s far more than the 0.4% rise previously expected by analysts polled by Portal.
Non-food items were the main driver of increased sales, while food retail sales weakened.
On an annual basis, retail sales fell slightly by 0.1%.
— Sophie Kiderlin
21 hours ago
CNBC Pro: These stocks make up the bullish “Golden Cross” chart – and have risen every time in the past
Three stocks are poised for a breakout, according to a chart pattern closely watched by technical analysts.
The phenomenon known as a “golden cross” occurs when the 50-day moving average of the stock price rises above the longer-term 200-day moving average. Wall Street views the pattern as a bullish sign of a possible upcoming rally.
This comes at a time when the S&P 500 is up nearly 10% and chart analysts expect the index to continue rallying.
Technical analysis is often used to identify an entry point for stocks. Of course, the process uses historical data to reflect future results, which cannot be guaranteed.
CNBC Pro subscribers can read more about the three stocks here.
– Ganesh Rao
21 hours ago
CNBC Pro: Nvidia and more: These global stocks will rise on the $324 billion autonomous vehicle boom, analysts say
Autonomous vehicles — or vehicles equipped with chips and sensors to enable autonomous driving — have been gaining momentum, and several stocks are making good use of this theme, according to Fubon Research.
“Automobiles will drive the next industrial revolution and mimic the evolution of the smartphone industry. As countries focus on vehicle safety, they are pushing the installation of ADAS (Advanced Driving Assistance System),” analysts at the research house wrote in a November report . 27 note, distributed by Jefferies.
Autonomous and motorized transportation systems such as electric vehicles are expected to grow at a compound annual growth rate (CAGR) of 24% and reach $324 billion in 2030 – making them the industry’s “largest growth segments,” the analysts added.
CNBC Pro subscribers can read more about the stocks to play here.
—Amala Balakrishner
21 hours ago
CNBC Pro: Cash versus bonds – what to buy in the next two years and beyond, say the pros
Depending on whether it is a longer-term higher regime or whether interest rates start to fall, investors may wonder whether they should stay invested in cash or invest in bonds.
British wealth management firm Schroders noted that it is now possible to earn 5% on cash deposits in the US and UK, but between 3% and 4% in Europe. This is fairly similar to government bonds, while high-grade corporate bonds yield higher at almost 6.5% in the US and UK and 4.6% in Europe.
“But bond prices can rise and fall, whereas cash prices cannot. That has led many investors to ask: “Is it worth getting into bonds?” it said.
Here’s what the pros say about how you should invest in fixed income – cash or bonds – over the next two years and beyond.
CNBC Pro subscribers can read more here.
– Weizhen Tan
Tue, November 28, 2023, 11:45 p.m. EST
European markets: Here are the opening discussions
European markets are heading for a positive opening Thursday.
According to IG, the UK’s FTSE 100 index is expected to open 3 points higher at 7,425, Germany’s DAX is expected to open 29 points higher at 16,194, France’s CAC is expected to open 6 points higher at 7,277 and Italy’s FTSE MIB is expected to open 18 points higher at 29,730.
Regional investors will be keeping a close eye on the release of preliminary Eurozone inflation data for November on Thursday. Final gross domestic product data for France for the third quarter and German unemployment figures for November are also due.
– Holly Ellyatt