stocks, news, U.S. inflation data

U.S. inflation posted the year’s biggest monthly increase in August as the core consumer price index was slightly higher than expected, data showed on Wednesday.

Core CPI, which excludes food and energy and is closely monitored by the Federal Reserve, rose 0.3% month over month, or 4.3% annually. A survey of economists compiled by Dow Jones suggested increases of 0.2% and 4.3%, respectively.

The headline CPI was up 0.6% month over month and 3.7% year over year, compared to expectations of 0.6% and 3.6%.

“Today’s rise in CPI slightly increases the likelihood of a November rate hike, potentially delaying the timing of a rate cut until late 2024,” said Joe Tuckey, head of currency analysis at Argentex Group. . “If the dollar cannot rise further from this data, this could be an interim ceiling for recent dollar gains.”

According to CME Group data, the market expects the Fed to hold off on raising interest rates this month, but the probability of raising rates in November is about 44%.

— Jenny Reid

Inflation, rising interest rates and economic uncertainty continue to weigh on European mergers and acquisition sentiment, with dealmakers more hesitant about the outlook than a year ago, according to a new report. report From law firm CMS and Merger Market.

As a result, the gap between private equity and corporations is widening, with the former proving more optimistic than the latter.

It also found that smaller deals were more common in the first half of this year compared to the same period in 2022 and 2021. Total transaction volume fell by 47% to €316 billion ($339.4 billion), while trading volumes declined. Only 12%, he has 7,608 cases.

A survey of 240 companies and 90 private equity firms based in Europe, the Americas and Asia-Pacific on the outlook for European M&A found that 43% expected activity to decline in the next 12 months, while 35% expected expected to increase.

— Jenny Reid

Sophie Land-Yates, chief equity analyst at Hargreaves Lansdown, said there was great uncertainty about who would take the top job full-time, with the market predicting that BP CEO Bernard Looney would take the top job full-time. He said he was “incredibly supportive” of the strategy. .

British insurance company shares Aviva The stock was later up 2.5% as of 11:17 a.m. in London. Said It plans to sell a 25.9% stake in Singapore Life Holdings and two bonds for 800 million pounds ($997 million).

British housebuilder Redrow rose 4.7% after beating pre-tax profit expectations among FTSE 250 companies. Said It expected this number to fall by half in the next financial year.

British builders were generally higher. persimmon increased by 2.8%; Taylor Wimpey Recent data shows house prices have fallen by the fastest rate since 2009, rising 2% despite a surge in mortgage arrears.

Meanwhile, the business world has digested the shocking departure of BP CEO Bernard Looney.

Before becoming CEO, Mr. Rooney told the company that his relationships with colleagues “have not been completely transparent in their disclosures to date.”

Market reaction was muted, with BP shares down 0.8%.

— Jenny Reid

Valentine van Nieuwenhuizen, global co-head of multi-asset solutions at Goldman Sachs Asset Management, says that makes sense given labor market conditions and wage trends.

Auto stocks rose 2% in early trading, but pared their gains to 1.2% despite widespread negative market sentiment.

The European Commission, the European Union’s executive arm, on Wednesday launched an investigation into subsidies given to Chinese electric car makers.

Volvo and renault exceeded Stocks 600increased by 4.6% and 4.4%, respectively. Volkswagen The stock price rose 2.5%.

— Jenny Reid

Britain’s gross domestic profit fell 0.5% in July, lower than the 0.2% contraction expected in a Reuters poll of economists.

National Bureau of Statistics, where service sector production was the main drag Saiddecreased by 0.5%.

The economy was stronger than expected in the second quarter overall, with the ONS reiterating its outlook for growth of 0.2%.

This is the latest sign of economic strain due to rising interest rates. Statistics on Tuesday showed that UK mortgage arrears soared to a seven-year high in the three months to June.

Paul Dales, chief UK economist at Capital Economics, said the GDP figures could signal the beginning of a mild recession, with “underlying growth losing momentum since the start of the year”. Stated.

Mr Dales highlighted that strikes and unusually wet weather were holding back certain sectors, but said the decline in production was broader and suggested broader weakness.

“Nevertheless, with wage growth still uncomfortably strong, I suspect the Bank of England will raise interest rates one last time next week, from 5.25% to 5.50%,” Dales said.

— Jenny Reid

Crude oil prices rose on Wednesday morning after hitting their highest since November 2022 due to supply concerns.

As of 7 a.m. London time, ICE Brent crude oil futures due November 2023 were up 0.22% at $92.26 per barrel. WTI crude oil Futures rose 0.3% to $89.11.

Both indexes rose nearly 2% on Tuesday.

Export terminals in Libya have been shut down amid devastating storms that have killed more than 1,000 people.

Meanwhile, OPEC announces monthly market reportThe company reiterated its demand forecast for the rest of the year.

another report The U.S. Energy Information Administration said it expects global oil inventories to fall in the fourth quarter, with Brent crude oil expected to average $93 per barrel over the same period. The forecast for oil demand growth in 2023 has also been raised.

Brent crude oil last week rose above $90 a barrel for the first time this year after Saudi Arabia extended its voluntary production cuts.

Analysts at capital markets and investment group CLSA have selected three global stocks they believe will benefit from the “lucrative potential” of artificial intelligence.

“We estimate that the global AI market could reach $1 trillion by 2026, with generative AI accounting for $100 billion as the next big driver of productivity and innovation.” List et al. said in a memo.

CNBC Pro subscribers can read more here.

— Amara Balakrishna

apple Shares fell 1.8% on Tuesday after the company unveiled the iPhone 15 at its “Wanderlust” launch event in Cupertino.

The latest in the popular iPhone series of smartphones features a 48-megapixel main camera, A16 Bionic chip, and 4K cinematic mode. The iPhone 15 is also made from 75% recycled aluminum and 100% recycled copper. iPhone 15 prices start at $799 for the base model, $999 for the Pro, and $1,199 for the Pro Max.

— Brian Evans

According to Morgan Stanley, a “recovery story” is unfolding in one corner of the semiconductor market this year.

The bank said prices and availability in this sector are further improving.

We list the most popular and least popular stocks.

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— Tan Weizhen

October West Texas Intermediate crude oil futures rose to $88.45 per barrel (42 gallons) early Tuesday, the highest since November 15, 2022.

WTI has not closed above $90 a barrel since November 11 of last year.

Brent futures for November, the world benchmark, also hit a 10-month high on Tuesday, hitting $91.50 per barrel.

permian resources, range resource, EQT, denbury and other energy stocks were all up more than 1% in early trading.

— Scott Schnipper, Gina Francola

Shares in the dual-listed U.S. and U.K. stock rose 20% last week after a U.S. judge ruled in the company’s favor.

Jefferies and Numis say the $16 billion lawsuit payout is expected to send the stock price soaring.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets are expected to open in negative territory on Wednesday.

british FTSE100 The index is expected to open 35 points lower at 7,494. dachshund 99 points down to 15,818, France CAC Italy down 37 points to 7,212 FTSE MIB According to IG data, it decreased by 190 points to 28,389.

Data releases include Eurozone industrial production statistics for July, UK industrial production and gross domestic product for July, and US inflation for August.

— Holly Ellyatt