European shares close open; Markets ready for more Fed rate action

Oil prices rise after Putin announces partial military mobilization

The Bank of England faces a decisive policy decision on Thursday, with the pound hitting a multi-decade low

Bank of England Governor Andrew Bailey has said that the independence of the central bank is “critically important.”

Bloomberg | Bloomberg | Getty Images

bank of englandThe U.S. Monetary Policy Committee will announce its latest decision on Thursday, with analysts divided on whether interest rates are expected to rise by 50 or 75 basis points.

The bank faces a critical choice as it navigates the effects of a falling currency and a new government energy cost package that has changed the inflation outlook.

The bank rallied 50 basis points last month, its biggest single increase since 1995, but some analysts believe the currency’s capitulation will prevent it from moving forward and keeping pace with global peers. would be required.

pound On Wednesday morning, it fell to $ 1.1340, the lowest since 1985.

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– Elliot Smith

Ongoing Stocks: Fortum up 14% after nationalization, Unipar down 27%

Finland’s stock fortum Stocks climbed more than 14% in early trading to lead the 600, when the company agreed to sell its 56% stake in the German utility. Uniper for the German government in a nationalization deal. Uniper shares fell more than 21% during opening deals in Frankfurt.

At the bottom of the Stoxx 600, Sports Workshop Shares fell more than 13% after British Wargame Company issued a trading update.

Russia’s Putin announces partial military mobilization

Russian President Vladimir Putin delivers a speech during a ceremony to receive certificates from newly-appointed foreign ambassadors at the Kremlin on September 20, 2022 in Moscow, Russia.

Pavel Bednyakov | Sputnik | Reuters

Russian President Vladimir Putin on Wednesday announced a partial military mobilization in Russia, putting the country’s people and economy on a war footing as Moscow’s invasion of Ukraine continues.

In a rare pre-recorded televised announcement, Putin said the West “wants to destroy our country” and claimed the West had tried to “turn the people of Ukraine into cannon fodder” in comments translated by Reuters.

Putin said “raising events” would begin on Wednesday without providing many more details, other than saying he had ordered an increase in funding to boost Russia’s weapons production.

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– Holly Ellyatt

Germany nationalizes energy giant Unipar as Russia cuts gas supplies

Unipar has received billions in financial support from the German government as a result of rising gas and electricity prices after Russia’s war in Ukraine.

Picture Alliance | Picture Alliance | Getty Images

The German government agreed on Wednesday to nationalize the utility Uniper as it seeks to keep the industry afloat in the wake of the worldwide energy crisis.

With a 15 billion euro ($14.95 billion) rescue deal to bail out the major gas importer already accepted in July, the kingdom will now buy a 56% stake in Finland’s Fortum for 0.5 billion euros. The German state is set to own about 98.5% of Unipar.

Fortum announced in a statement Wednesday morning, “Since the stabilization package for Uniper was agreed in July, the situation at Uniper has further deteriorated rapidly and significantly, e.g., new measures agreed to address the situation.” happened.”

Read more here.

, Elliot Smith

Oil prices rise as investors prepare for more Fed rate hikes

Oil prices rose slightly after falling in earlier trading on Wednesday ahead of an aggressive rate hike expected by the Federal Reserve.

brent crude futures rose 0.23% to $90.83 a barrel, while US West Texas Intermediate also rose 0.17% to $84.10 per barrel.

“The US Energy Information Administration expects a modest increase in oil production in seven major US oil and gas basins in September,” Commonwealth Bank of Australia analyst Vivek Dhar wrote in a note.

— Lee Ying Shano

CNBC Pro: FedEx warns of a bleak outlook – should investors be worried?

FedEx’s bleak early earnings and revised outlook plucked shares last week, but is it as bad as it looks?

CNBC Pro asked investment experts what the announcement means for the global economy and investors.

can pro client read more here,

— Xavier Ongo

European businesses are rethinking their China plans

European business in China increasingly facing an environment in which “ideology overtakes the economy,” The European Union Chamber of Commerce in China said in its annual position paper released on Wednesday.

Jorge Wutke, president of the trade group, said this year’s Covid containment has turned China into a “closed” and “distinctively isolated” country that could prompt companies to leave.

Earlier this month, Chinese President Xi Jinping said that the country “continues to respond to COVID-19 and promote economic and social development in a well-coordinated manner,” his statement shared by China’s foreign ministry said. As per a paraphrase of the comment.

— Evelyn Cheng

CNBC Pro: Want to play the EV sector? Analysts Say This Lithium Stock Could Climb 70%

As interest in battery stocks surged after a tough year so far, CNBC Pro analyzed several stocks in the sector that analysts say have serious potential.

CNBC Pro showed Global X Lithium & Battery Tech ETF For stocks that can outperform on FactSet. A stock on the list has jumped more than 40% so far this year, and analysts say it has gained more than 70%.

CNBC Pro customers can read more here.

– vegan thin

European Markets: Here Are the Early Calls

European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.

According to IG data, UK’s FTSE index is expected to drop 47 points to 7,341, Germany’s DAX is down 86 points to 13,106, France’s CAC is down 40 points to 28 and Italy’s FTSE MIB is expected to drop 132 points to 22,010.

Global markets pull back after higher than expected US consumer price index Reports for August, in which prices rose 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying economists’ expectations that headline inflation will fall 0.1% month-on-month. .

Core CPI, which does not include volatile food and energy costs, climbed 0.6% from July and 6.3% from August 2021.

UK inflation figures for August are due and euro area industrial output for July will be published.

— Holly Eliot

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