News: EUR 2022-11-23 15:04

European shares hold near 3-month highs as business activity slowdown eases

By Sruthi Shankar

(Reuters) -European stocks were pinned near three-month highs on Wednesday as data showed a downturn in euro zone business activity eased slightly in November, while rallying commodity shares offset losses in Credit Suisse following its profit warning.

The Europe-wide STOXX 600 index inched up 0.1% to its strongest level since Aug. 19. Oil and gas and mining stocks extended gains for a second session, and were up 1.3% each.

Credit Suisse fell 5.1% to the bottom of STOXX 600 after the embattled Swiss lender said it expects to make a pre tax loss of up to 1.5 billion Swiss francs ($1.58 billion) for the fourth quarter.

S&P Global (NYSE:SPGI)'s flash Composite Purchasing Managers' Index (PMI) for the euro zone, seen as a good gauge of overall economic health, nudged up to 47.8 in November from the previous month. Economists were expecting a fall to 47.0 in a Reuters poll.

The survey, however, also showed overall demand continued to decline as consumers cut spending amid a cost of living crisis.

"The PMIs confirm that the European economy is probably already in a technical recession in the fourth quarter but they also show we're stabilising around the low levels and not falling off a cliff," said Christian Stocker, lead equity strategist at Unicredit (BIT:CRDI).

"It is a light recession but nothing dramatic for the earnings."

The benchmark STOXX 600 has rallied about 14% from its September closing lows, aided by a better-than-expected earnings season and expectations that Federal Reserve will slow its pace of rate hikes amid signs of a cooling U.S. economy.

The Fed's November meeting minutes, due at 1900 GMT, will offer fresh clues on the path of interest rates. Traders have currently priced in a 77% chance that the U.S. central bank will hike rates by 50 basis points in December.

The European Central Bank will release its own meeting minutes on Thursday. ECB Vice-President Luis de Guindos said the central bank will keep raising interest rates until it brings inflation down to around its 2% mid-term goal.

Kering (EPA:PRTP) slipped 0.8% in choppy trading after a report said Gucci's creative director Alessandro Michele is leaving the Italian fashion house, owned by the French luxury group.

EMS Chemie dropped 3.8% after the Swiss nylon maker cut full-year earnings forecast amid worsening economic outlook.


#EURO #Stock #EUR

Recent events
2023-02-02 17:53
News 593
ECB hikes rates by 50bp

The European Central Bank has hiked interest rates by 50bp and made a quasi-announcement of a further 50bp hike in March...

2023-02-01 19:52
News 44636
German labour market starts the year off strongly

Only a small increase in unemployment in January shows that the labour market remains an important source of resilience ...

2023-01-31 16:36
News 506
Eurozone avoids contraction but domestic demand falters

A resilient eurozone economy managed to grow by 0.1% in the fourth quarter, but this likely masks a contraction in house...

2023-01-31 12:58
News 258
China: PMI positively surprises the market

USDCNY fell to around 6.75 after the PMI data release came in better than expected
Surprise from the non-manufact...

2023-01-30 17:58
News 572
German economy falls into winter recession

So much for reliable statistics! The German economy contracted in the fourth quarter of 2022 after the first tentative s...

2023-01-28 17:21
News 861
Pressure on BOJ Grows

Market movers today
In the US, household spending probably declined in December, with high-frequency indicators s...

2023-01-28 17:19
News 389
Australian dollar shrugs as PPI falls

The Australian dollar is almost unchanged on Friday, trading at 0.7112.

Australia’s PPI slips

2023-01-28 17:13
News 21611
Exclusive: Top U.S. Treasury official to warn UAE, Turkey over sanctions evasion

The U.S. Treasury Department's top sanctions official on a trip to Turkey and the Middle East next week will warn countr...

2023-01-28 17:07
News 876
Dollar clings to gains after U.S. data; traders eye Fed next week

The dollar clung to modest gains against the euro on Friday after data showed falling U.S. consumer spending and cooling...

2023-01-28 17:01
News 661
Gold en route to sixth weekly gain; focus shifts to Fed

Gold steadied on Friday with gains capped by a stronger dollar, but the metal was still set for a sixth straight weekly ...

2023-01-28 16:50
News 22231
Oil prices settle lower on stronger supply outlook

Oil prices settled lower on Friday, making their weekly finish flat to lower, as indications of strong Russian oil suppl...

2023-01-28 16:46
News 546
Chinese PMIs And Potential Commodity Currency Recovery

With lingering questions on how much of an impact China’s reopening will have on the global economy, there’s likely ...

2023-01-28 16:32
News 690
Will the Fed add a hawkish flavor to a smaller hike?

With some Fed officials corroborating investors’ view of a quarter point increase, Wednesday’s FOMC gathering will l...