Stocks on the move: Thyssenkrupp falls 8%, Roche rises 5%
Shares of German multinational conglomerate Thyssenkrupp fell 8% in early trading after JPMorgan reinstated its coverage of the stock with an “underweight” rating.
At the top of the Stoxx 600, Swiss pharmaceutical company Roche jumped 5.7% after a positive read-across from an Alzheimer’s disease study by rivals Eisai and Biogen.
– Elliot Smith
Yields on 20- and 30-year UK government bonds top 5%
Yields on 20- and 30-year UK government bonds rose past 5% on Wednesday as the extraordinary sell-off in the UK fixed income market continued.
Bond yields move inversely to prices. The new government’s so-called “mini-budget” on Friday sparked a wave of sales in UK fixed income markets, with gold yields now at their biggest monthly rise since at least 1957, according to a Reuters analysis of both Refinitiv and Bank of England data. .
– Elliot Smith
IMF casts scathing verdict on UK tax cuts
Signage outside the International Monetary Fund (IMF) headquarters in Washington, DC, US, on Tuesday, April 19, 2022. The IMF has slashed its global growth forecast the most since the early months of the Covid-19 pandemic, forecasting inflation even faster, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images
US 10-year Treasury yields exceed 4% for the first time since 2010
CNBC Pro: Credit Suisse Says Now Is The Time To Buy Two Green Hydrogen Stocks – Giving One Over 200% Up
Credit Suisse says it’s time to enter the green hydrogen sector, with a number of catalysts that will power the clean energy powerhouse.
“Green hydrogen is a growth market – we are increasing our market estimates for 2030 by [over] 4x,” the bank said, predicting that green hydrogen production will increase by about 40 times by 2030.
It calls two stocks to play the tree – with an advantage of over 200%.
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: Wealth Manager Reveals What’s Next for Stocks – And Shares How He’s Trading the Market
Neil Veitch, investment director at Edinburgh-based SVM Asset Management, says he expects the macro landscape to remain “quite difficult” for the rest of the year.
Speaking with CNBC Pro Talks last week, Veitch listed the key drivers that could help the stock market become “more constructive” and shared his view on growth versus value.
CNBC subscribers can read more here.
— Zavier Ongo
US 10-year yield approaches 4%
Ten-year government bond yields are approaching 4%, a level it has not reached since 2010.
The US 10-year yield is the benchmark yield that sets the price for mortgage rates and other consumer and business loans. It’s capped higher this week as UK government bonds race higher and on expectations of an aggressive Federal Reserve.
Returns stood at 3.96% in afternoon trading. The 10-year yield reversed a previous decline and gained about basis points. (One basis point equals 0.01 percentage point)
“It was absolutely impressive, and I just don’t think anyone is ready to step in and catch the falling knife,” said BMO’s Ben Jeffery. He added that a lack of liquidity has also pushed up yields, which are counter to price.
Jeffery said yields also moved higher ahead of the 5-year bond auction at 1 p.m.
He said the 10-year test tested the 4% level in 2010. “The last time we were above 4% sustainably was in 2008. There’s still a technical level of 4.10% and then it doesn’t matter much until 4.25%,” he said.
— Patty Domme
European markets: these are the opening calls
European equities are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.
The UK’s FTSE index is expected to open 47 points lower at 7,341, Germany’s DAX 86 points lower at 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB 132 points lower at 22,010, according to data from IG.
Global markets have retreated after a higher-than-expected U.S. consumer price index report for August, which showed prices rose 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying the expectations of economists who monitor inflation. would fall by 0.1% monthly.
The core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.
UK inflation figures for August are expected and Eurozone industrial production for July will be released.
— Holly Ellyatt