Stocks on the go: Zalando up 5%, DS Smith down 3%
CNBC Pro: Goldman Sachs Raises Crude Oil Price Outlook After ‘OPEC+ Challenges the West’
Oil prices will rise by the end of this year, according to Goldman Sachs.
Wall Street made the call after OPEC+, a powerful group of oil producers, decided to cut production by 2 million barrels per day from November.
According to the bank’s analysts, it would be “unsustainable” for OPEC + to keep the cuts until the end of next year as oil stocks will be completely depleted, driving prices higher and destroying demand.
Barclays: Stocks are swinging from prices and calming the dollar, but it’s not out of the woods yet
Barclays European equity strategists noted on Wednesday that a temporary calm in prices and the US dollar had provided some relief to “oversold” stocks.
“Amid signs of financial stress, we may be closer to the pain threshold for central banks, but we believe that the dovish pivots require more evidence of weak growth and a decisive drop in inflation, so we suspect equities are not at risk yet,” said Emmanuel Kao, head of European stock strategy at Barclays.
Cau suggested that the stock market’s retracement bar is too low, with major indices down 25%-30%, sentiment still “bearish” and the fourth quarter typically presenting “positive seasonality”. However, he noted, the “growth policy trade-off” is still difficult.
“While de-risking has gone a long way, unmotivated capitulation may continue to mitigate hard-down fears. High, sticky inflation limits the ability of central banks to make a turn and tolerate early easing in financial conditions, even as recession approaches,” Kao said.
“As we have seen in the UK, though, credit pressures are important to the reaction function of central banks and we may have touched the pain threshold, but markets should not confuse financial stability for monetary stimulus – for the end of easy money broad ramifications are just emerging. right Now “.
– Elliot Smith
CNBC Pro: NYU’s Aswath Damodaran names big tech stocks better than ‘traditional safe’ ones
Aswath Damodaran of New York University likes companies that can “withstand a hurricane, disaster if it happens.”
The New York University finance professor, sometimes referred to as the “dean of valuation,” believes big tech stocks can do just that, and reveals what stocks he owns.
Professional subscribers can Read more here.
– Xavier Ong
Mizuho: OPEC+ production cut confirms ‘explicit desire for price recovery’
The decision of OPEC and its allies Production cut by 2 million barrels per day Vishnu Varathan, head of economics and strategy at Mizuho Bank, stresses the group’s explicit desire for a price recovery, not just support.
He wrote that a supply cut of around 1 million barrels per day would have resulted in price gains without compromising on volumes, but that the larger cut shows “the alliance’s disregard for economic problems, and its geopolitical alignment with global partners.” .
“What might be said as an opportunistic gamble that exploits the kinks of the geopolitical show for self-interest, is now in danger of being construed as an affront to the United States and its allies (in protest of Russia’s price cap plans) that are in line with Russia,” he added.
– Abigail Ng
CNBC Pro: “There is a lot to buy in China,” says fund manager and calls these two electric stocks
Despite poor returns from China’s stock markets this year, one fund manager believes there are pockets of value in certain “core sectors” even when financial conditions are tough.
Edmund Harris, head of Asian and emerging markets investments at Guinness Asset Management, says companies in electric vehicles, factory automation and sustainable energy are likely to outperform their global peers over the next five to 20 years.
He cited two stocks that might benefit from this topic.
– Ganesh Rao
Dietrich says October could be the start of a bullish rally in the market
Although stocks fell on Wednesday, halting a major two-day winning streak, October could still be the start of a new market rally according to Ryan Detrick, chief market strategist at Carson Group.
“We think this could be the start of a year-end rally of a decent size,” Dietrick said on CNBC’s “Close Bell: Overtime.”
Detrick said this is due, traditionally, to better stock performance in October in midterm years.
He also noted that although the markets ended the day lower, stocks posted a big rally in the afternoon, recovering a lot of losses. This is a positive, according to Dietrich.
– Carmen Renick
CNBC Pro: Is it time to buy low? Some stocks are still trading at lower lows with significant upside
Brought early this week Something from a relief walk for stocks. However, global indices as well as Wall Street indices are still in good shape so far.
This can provide an opportunity for investors who are looking for high quality stocks and future bullishness in a volatile environment.
CNBC Pro examined stocks that are trading within 10% of their 52-week low, but have a buy rating from more than 50% of Wall Street analysts covering them. The stocks have a bullish average target price of 20% or more, and a forecast of earnings growth for 2022 of at least 10%.
Here are the stocks that appeared. CNBC Pro subscribers can read more here.
– Weezin Tan
European markets: here are the opening calls
European stocks are heading to a lower open on Wednesday, breaking the positive trend seen in the previous session.
The UK FTSE is expected to drop 27 points at 7059, the German DAX is expected to fall 59 points at 12606, the French CAC 40 is expected to fall 25 points at 6.005, and the Italian FTSE MIB is down 112 points at 21426, according to data from IG. .
The expected declines on Wednesday come after European markets rebounded yesterday with European market prices rising Stokes 600 It closes up 3%. Travel and leisure stocks jumped 6.1%, topping the gains, with all major sectors and stock exchanges entering positive territory.
The data released on Wednesday includes the final Eurozone PMI data for September and German import and export data for August. The profits come from Tesco and Bang & Olufsen.
– Holly Eliat