End of a winning week on dovish Fed bets | Popgen Tech

Europe’s Stoxx 600 index closed flat on Friday, capping an upbeat week in which it surpassed a three-month high and secured a sixth week of gains.

The main German and French bourses were flat, as the UK’s FTSE 100 rose 0.3%.

Expectations of slower rate hikes from the Federal Reserve and economic data suggesting that upcoming recessions in Germany and the broader eurozone may be shallow encouraged markets.

This was despite the negative performance of stocks such as Credit Suisse, which is facing a major restructuring after several scandals.

— Jenny Reid

Stocks opened little before the short trading day on Friday as Wall Street looks to wrap up a winning holiday week.

The Dow Jones Industrial Average rose 19 points or 0.09%. The S&P 500 lost 0.03% and the Nasdaq Composite fell 0.48%, weighed down by shares of Activision Blizzard, which fell nearly 4% on news that the FTC could block Microsoft from acquiring the gaming company.

—Carmen Reinicke

Credit Suisse shares fell more than 5% on Friday to an all-time low of 3.37 Swiss francs ($3.55).

The embattled Swiss lender has seen its shares continue to slide, despite securing more than $4 billion in financing from investors including the Saudi National Bank to shore up its financial position.

Credit Suisse is undergoing its second strategic review in less than a year as it looks to address persistent underperformance in its investment bank and a series of risk management and compliance failures that have saddled the bank with significant litigation costs.

– Elliot Smith

Emmanuel Cau, head of European equity strategy at Barclays, talks to CNBC’s “Squawk Box Europe.”

The UK is heading for a deeper recession than Europe and the US, according to Rupert Thompson, chief economist at investment firm Kingswood.

The volume of Black Friday card transactions is in line with 2021 levels, according to Barclaycard Payments data.

The data covered purchases up to 10am London time made by Barclaycard Payments, which processes £1 in every £3 spent on debit and credit cards in the UK

Investors are watching the annual shopping extravaganza closely to see how inflation and cost-of-living problems affect consumer spending.

— Hannah Ward-Glenton

Germany’s yield curve hit its deepest inversion since 1992, Reuters reported, citing Refinitiv data.

The gap between 2-year and 10-year government bond yields was at -27 basis points late Thursday and -26 basis points on Friday.

Many economists view an inverted yield curve as a precursor to a recession.

There is widespread agreement among analysts that Germany is heading for recession, although Friday’s final GDP reading for the third quarter showed 0.4% quarter-on-quarter and 1.3% annual growth, fueling hopes that it will be shallow.

Eurozone PMI figures for November showing a moderation in the slowdown in business activity also added to cautious optimism.

— Jenny Reid

German GDP figures show the country’s economy grew slightly more than expected in the third quarter due to consumer spending.

Europe’s largest economy grew by 0.4% compared to the second quarter and by 1.3% year on year, according to the Federal Statistics Office.

Germany is expected to fall into recession, but the data suggests it may not be as bad as first projected.

— Hannah Ward-Glenton

Shares of British housebuilders Taylor Wimpey, Bellway and Persimmon all fell more than 2% in early trade after a survey showed UK first-time buyers increasingly prefer rental properties.

At the top of the Stoxx 600, Danish mineral wool product manufacturer Rockwool International Gained 4% after Morgan Stanley raised its price target for the stock.

Britain’s FTSE 100 is seen around 2 points higher at 7,467, Germany’s DAX expected to add about 8 points to 14,548 and France’s CAC 40 slip by about 6 points to 6,701.

The UK commercial property sector is in a “toxic environment” for investors, according to Plurimi Wealth’s chief investment officer.

Patrick Armstrong told CNBC’s Pro Talks that the real estate sector is “sensitive” to higher interest rates, which he thinks will lead to lower property values ​​and stock prices.

He revealed two stocks he is betting against in the sector by shorting their shares.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Patrick Armstrong, chief investment officer at Plurimi Wealth, believes margin squeeze is the ‘biggest risk’ for equities. But he thinks some stocks can buck the trend.

“Own sectors with defensible margins or creating margin squeezes elsewhere,” he added, naming the sectors and stocks he likes best.

Pro subscribers can read more here.

— Zavier Ong

Global economic conditions will shift next year and that will change which markets and sectors are underperforming, according to the chief strategist of UBS Investment Bank.

“It’s an inch deep, but it’s a mile wide,” he said of the expected recession. “Global growth is at 2% and that’s not priced into equities,” Bhanu Baweja told CNBC’s “Squawk Box Europe” on Wednesday.

He also mentioned which sectors he expects to perform better next year.

CNBC Pro subscribers can read more here.

— Jennifer Reid