Stocks in motion: Telecom Italia up 11%, Electrolux down 8.5%
Bloomberg | Bloomberg | Getty Images
Telecom Italy hit the top of European stocks in early trading, up 11% after reports US private equity firm KKR & Co Inc was preparing to make a non-binding offer for its fixed network.
The network provides key support for the struggling company’s huge debt load, Reuters reported.
Meanwhile, Electrolux fell 8.5% after warning it would see sales slump this year and could suffer from rising energy and labor costs.
European markets climb ahead of central bank announcements
Europe Stoxx 600 was 0.5% higher at the open as investors braced for interest rate hike decisions from the Bank of England and the European Central Bank this afternoon.
This follows declines over the past three sessions. After the European close on Wednesday, the US Federal Reserve announced a smaller 25 basis point rate increase – but gave some hints that his hiking cycle was coming to an end.
The German DAX climbed 0.65%, the French CAC 40 0.6% and the British FTSE 100 0.2%.
Deutsche Bank smashes fourth-quarter earnings forecast
German Bank reported its 10th straight quarter of earnings, helped by higher interest rates and favorable market conditions.
The German lender announced net profit attributable to shareholders of 1.8 billion euros ($1.98 billion) for the fourth quarter, raising its annual net profit for 2022 to 5 billion euros, an increase of 159% compared to the previous year.
It nearly doubled a consensus estimate among analysts polled by Reuters of 910.93 million euros in net profit for the fourth quarter, and beat a full-year projection of 4.29 billion euros.
Deutsche Bank share price
CNBC Pro: JPMorgan Says Hong Kong Stocks Will Rebound in February, Names 5 Stocks to Hold
JPMorgan named five stocks to hold amid an expected rise in the broader Chinese stock market in February.
Strategists at the Wall Street bank attributed the selloff in Hong Kong-listed stocks last week to profit-taking by some investors.
They said the broader stock market would “rise” this month, but turn to “consumption-grade laggards as well as cyclical spaces of value and growth.”
CNBC Pro subscribers can learn more about the 5 stocks JPMorgan named.
CNBC Pro: Beware of tech stocks — these cash-rich names are a better bet, analysts say
Forget about growth stocks like technology. Analysts recommend investors go for companies with plenty of cash.
Market rallied in January – including tech-heavy companies Nasdaq Composite, which rose nearly 10.7% last month for its best monthly performance since July.
But analysts say companies with pricing power are a safer bet than technology, given inflation is expected to remain high this year and uncertainty over when the US Federal Reserve will cut rates. lower interest.
They named three stocks to buy.
CNBC Pro subscribers can learn more here.
CNBC Pro: Worried about Alibaba’s share price drop? Analysts have 4 alternative technology choices
Alibaba shares have rebounded strongly this year, although a recent drop in its share price has worried some investors.
But the Wall Street favorite is far from the only game in town, with several stocks also offering exposure to China’s internet sector.
Pro subscribers can find out more here.
— Zavier Ong
European markets: here are the opening calls
European markets are heading for a higher open on Thursday as markets react positively to the US Federal Reserve’s quarter-point rate hike.
The United Kingdom FTSE100 the index is expected to open 31 points higher at 7,788, Germany DAX 101 points more to 15,273, France CAC up 35 points to 7,109 and Italy MIB FTSE up 121 points to 26,870, according to IG data.
On Thursday, investors in Europe will focus on the latest monetary policy decisions from the European Central Bank and the Bank of England.
It’s a busy day for earnings with reports from Shell, BT Group, Deutsche Bank, Banco Santander, ABB, Julius Baer and Roche.