European markets advance on inflation data boost; Stoxx 600 up 1%

Britain will perform worst of most developed economies in 2023, say forecasters

Britain will perform worst of most developed economies in 2023, say forecasters

The Great Planner at Principal Global Investors Seema Shah expects a difficult start to 2023 for the UK due to the decline in household savings and the impact of rising prices.

France’s currency suddenly decelerates

The sky from the Arc de Triomphe in Paris, France.

Bloomberg | Bloomberg | Getty Images

Inflation in France slowed to 6.7% in December from a high of 7.1% in the previous month, preliminary data published on Wednesday morning showed.

Investors polled by Reuters saw the year-over-year inflation rate, which is adjusted for comparisons with the euro area, coming in at 7.2%.

The biggest drop was energy, where prices rose 15.1% year-on-year, up from 18.4% in November.

This follows a slower economic growth than expected in Germany, which reported on Tuesday that the HICP fell to 9.6% from 11.3%; and in Spain, which recorded last week a fall to 5.8% from 6.7%.

Analysts are looking for signs of higher inflation in the euro zone economies; and whether this will affect the European Central Bank, which previously stated that interest rates need to be “very” high.

According to the researchers at ING, the way to reduce the price of the price will not be easy and remain on the strength of the market and agricultural challenges that affect the price of food.

“[Germany’s] The inflation numbers are not a relief, but, just a reminder that the Eurozone economy is still a strong economic situation,” they said in a statement.

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Italy will report on inflation data on Thursday, followed by an estimate for the Euro area on Friday.

— Jenny Reid

Switzerland annual price up 2.8% in 2022

Swiss consumer prices increased by 2.8% year-on-year and decreased by 0.2% in December, the Swiss Federal Statistical Office said today.

The increase in Switzerland was found to be an average of 2.8% in 2022, from 0.6% in 2021. It caused the annual increase in high prices for oil products, gas, cars and rental houses, which reduces the drop in prices for drugs and fixed lines and mobile communications.

Stocks moving: BKW up 4%, Tenaris down 5%

Swiss electricity BKW jumped 6% in early trading to lead the Stoxx 600 after expecting an “outstanding” result for 2022.

Italian manufacturer of steel pipes Tenaris fell 5% to the bottom of Europe’s blue-chip index.

– Elliot Smith

CNBC Pro: Analysts see 10 renewable energy stocks in the world growing despite high prices and one offering 50% up.

Rising energy prices have spurred investment in renewable energy around the world.

Swiss bank UBS has named 10 leading renewable energy companies in this regard and is set to increase next year.

CNBC Pro can read more here.

— Ganesh Rao

CNBC Pro: Wall Street is bullish on this big ship, with Morgan Stanley giving it a 55% upside

The first batch of chips was hit in 2022, but Wall Street seems to be more optimistic about semiconductor stocks for the coming year.

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Recently, many experts encouraged investors to take a long-term view on the sector, due to the importance of chips in many key global trends.

Analysts have named one particular stock they are interested in, citing its earnings and future prospects.

CNBC Pro can read more here.

— Weizhen Tan

US will avoid recession in 2023, says Goldman Sachs

Goldman Sachs has an unusual forecast for the US economy in 2023.

“We continue to believe that the US economy will avoid recession because the Fed has successfully engineered a soft landing for the economy,” analysts wrote in Today Two.

“This unusual pattern reflects in part our view that a period of below-potential growth will be sufficient to slow the recovery of the labor market and reduce including fees and charges,” the letter said. “But this also reflects our analysis which shows that the pull from the tightening of monetary and fiscal policies will be significantly reduced next year, compared to the consensus view of the release of the effects interest rates will cause a recession in 2023.”

In addition, the bank today raised 4Q22 GDP growth by 10bp to +2.1% on the back of strong November Construction Spending.

“The disconnect between the resilience of the U.S. economy in 2022 and the decline in sales has been a key statement of the past year,” Goldman said. “And, whether this disconnect will continue, whether the economy will meet the decline of the market, or whether the market will recover after the rise of the economy may be part of the story of 2023.”

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—Carmen Reinicke

CNBC Pro forecast for low-volatility stocks amid concerns of a bumpy ride ahead

Stock markets experienced a terrible 2022 as major brands recorded their worst performance in more than a decade.

As market analysts warn investors of tough times ahead, CNBC Pro uses FactSet data to find stocks that will not only underperform the market in 2022 but are expected to rise further this year. .

Pro subscribers can read more here.

— Zavier Ong

Market in Europe: The early stages

European markets are headed for Wednesday’s opening high as investors await the latest minutes of the US Federal Reserve, looking for signs of more interest rate hikes to come.

The British FTSE 100 index is expected to open 11 points higher at 7,570, Germany’s DAX 28 points higher at 14,227, France CAC up 9 points to 6,643 and Italy FTSE MIB up 31 points to 24,449, according to information from IG.

In Europe Tuesday, markets closed higher, boosted after Germany published lower-than-expected data for December, down 9.6% year-on-year. Currency figures from France are due on Wednesday.

— Holly Elliott


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