Stocks on the move: Ames-Osram up 5.8%, Hanover Rock up 5.1%.
Semiconductor manufacturer Ams-Osram It rose 5.8% to lead the Stoxx 600 on news that Aldo Kamper, formerly of German cable and harness company, Aldo, has been appointed as its new CEO.
At the other end of the European standard, Hanover Roeck It fell further in afternoon trading, down 5.1%, after full-year results were announced.
US stocks open lower ahead of the Federal Reserve’s decision
US stocks Fell in early deals Wednesday as investors looked forward to the Federal Reserve’s interest rate decision.
The Dow Jones Industrial Average was down 234 points, or about 0.7%, at the open. The S&P 500 fell nearly 0.3%. Meanwhile, the Nasdaq Composite fell 0.2%.
US private payroll growth rose 106,000 in January, less than expected
US companies added fewer jobs than expected in January, according to the ADP.
Private payrolls rose by 106,000 in January, short of the 190,000 estimate from the Dow Jones Index, and in addition to the 235,000 recorded for December.
– Sarah Maine
Novartis reported flat income, with growth forecasts in 2023
Swiss pharmaceutical company Novartis It reported underlying operating income of $16.7 billion for 2022, broadly flat year-over-year.
It forecast mid-single-digit growth for 2023, when it is due to spin off its generic drug business at Sandoz.
Novartis CEO Vas Narasimhan told CNBC’s Jeff Cutmore that the company faced challenges in the first half of 2022 including hyperinflation and the ongoing impact of the coronavirus pandemic. But those factors have been leveling off, providing a tailwind for the year ahead.
Narasimhan directed The potential impact of the US Inflation Reduction Act on Medicine pricingwhich he said could be offset in the near term but would require a reconsideration of the strategy in the long term.
He also discussed drug legislation in Europe, where he said governments need to “re-dedicate themselves to healthcare”, and the European Commission must “create an environment more supportive of innovation”.
Novartis shares were down 2.26% in early afternoon trade.
– Jenny Reed
BBVA chair discusses record company earnings
Spanish bank BBVA posted record profits for 2022, which attributed the rise to a jump in lending income and strong performance in Mexico.
Net profit for the full year was 6.42 billion euros ($6.98 billion), beating analysts’ expectations.
President Carlos Torres Villa told CNBC that he now expects less growth than in 2022 “but there is still growth.”
BBVA shares were trading up 3.6% at midday London time.
– Jenny Reed
Eurozone inflation is falling for the third month in a row as energy prices continue to fall
inflation in the eurozone came in 8.5% in January, according to preliminary data released Wednesday.
The 20-country region saw big price increases in 2022, after Russia’s invasion of Ukraine sent energy and food costs up across the bloc. However, inflation began to decline in late 2022, showing two consecutive months of decline at key levels. In December, the rate was recorded at 9.2%.
– Silvia Amaro
Major central banks are preparing to signal the downward path of interest rates
The Federal Reserve building is seen before the Federal Reserve signals plans to raise interest rates in March as it focuses on fighting inflation in Washington, January 26, 2022.
Joshua Roberts | Reuters
the US Federal ReserveAnd European Central Bank And Bank of England They are expected to raise interest rates again this week, as they make their first policy announcements for 2023.
Economists will be watching policymakers’ rhetoric closely for clues to the path of future rate hikes this year, as the three major central banks attempt to engineer a soft landing for their economies without allowing inflation to regain momentum.
the The market is priced in by a 25 basis point hike from the Fed on Wednesday, but the key question is what the FOMC will signal about further rate hikes in 2023.
Meanwhile, a 50 basis point hike from the European Central Bank and Bank of England is expected on Thursday.
– Elliott Smith
Growing Stocks: Husqvarna Up 6.2%, QinetiQ Down 4.2%
Swedish foreign machinery seller Husqvarna It was higher after the opening, up 6.2%, although a higher operating loss was reported for the fourth quarter. Adjusted for items including restructuring narrowed the loss, however.
At the bottom of the Stoxx 600 index is the British defense company QinetiQ shed 4.2%.
Reinsurer in Germany Hanover Roeck It fell by a similar amount after reporting higher full-year results in line with its previous forecast.
– Jenny Reed
European markets open higher as investors prepare for the next Fed rally
Europe Stokes 600 It rose 0.3 percent in early trading, with travel stocks rising 0.9 percent and financial services 0.8 percent.
The UK’s FTSE 100 is up 0.25%, France’s CAC 40 is up 0.17%, and Germany’s DAX is up 0.1%.
The start of the year rally has stalled, but European markets still managed to gain 6.72% during January.
Wednesday will be dominated by the Federal Reserve’s monetary policy announcement, in which a 25 basis point increase is expected, as well as hints about the future path and assessment of the US economy.
– Jenny Reed
European Markets: Here are the opening calls
European markets are heading for a higher open on Wednesday as investors focus on the US Federal Reserve’s latest monetary policy announcement today.
United kingdom FTSE 100 index The index is expected to open up 10 points at 7781, the German Dax 30 points higher at 15,154 in France kk Up 10 points at 7096 and Italy FTSE MIB It rose 75 points at 26,721, according to data from IG.
Profits come from Vodafone, GlaxoSmithKline and Novartis. The main data released in Europe on Wednesday are flash inflation figures from the Eurozone for January.
– Holly Ellytt
Factory activity in China contracted again
Factory activity in China in January indicated a further contraction from previous readings, albeit at a slower pace, marking the sixth consecutive monthly contraction.
The Caixin Manufacturing PMI for January came in at 49.2 on Wednesday, a reading slightly above December’s 49.0 but still missing Reuters’ expectations of 49.5.
Caixin stated in its report: Press release.
– Lee Ying Chan