European markets open to close, stock movements, news and data

German wholesale inflation in October well below expectations

Germany’s producer price index came in at -4.2% month-on-month in October, the federal statistics agency said Monday, well below a Reuters consensus forecast for a 0.9% increase.

On a year-over-year basis, wholesale prices rose 34.5%, beating expectations of a 41.5% increase.

—Elliot Smith

Stocks on the move: Virgin Money up 13%, IDS down 5%

Virgin money Shares rose more than 13% to lead the Stoxx 600 in early trading after the company reported a rise in pre-tax earnings for fiscal 2022 and announced a £50 million ($59.4 million) share buyback program.

At the bottom of the index, equities International Distribution Services — trading as Royal Mail — fell 5% as the company faces new waves of damaging worker union action over the holiday season.

Oil prices fall as China worries about Covid, Goldman Sachs lowers forecast

Oil prices fell by nearly a dollar as Covid concerns mounted in China and the country saw its first virus-related deaths since May this year.

Brent crude futures lost less than a dollar, or 0.9%, to $86.83 a barrel and US West Texas Intermediate futures fell 1.09% to $79.21 a barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 a barrel for the fourth quarter of 2022, citing dented Chinese demand with growing Covid concerns and insufficient details of the Group of 7 countries’ latest price cap for Russian oil.

“We believe the market has a right to be concerned about future fundamentals,” economists including Jeffrey Currie said in the note, adding that the potential of further lockdowns in China equals OPEC+’s latest production cut.

— Lee Ying Shan

CNBC Pro: Strategist says Chinese tech stocks like Alibaba are “deeply undervalued.”

This year, the 30% drop in value of Chinese Big Tech stocks is like alibabahas made them “incredibly cheap” according to investment bank China Renaissance.

Head of equities, Andrew Maynard, believes not only that the stock market seems to have bottomed out, but also that investors could miss out on a rally if they remain underweight in China.

“Without a doubt, an underweight position in China will cost you your future,” Maynard said.

CNBC Pro subscribers can read more here.

— Ganesha Rao

Markets are looking for more indications of rate hikes from the Fed and the economy in the coming week

Investors may want to be a little more cautious in the coming week as equities head for quiet trading and the bond market’s recession warnings become increasingly louder.

The Thanksgiving holiday on Thursday should mean markets are likely to be quiet on Wednesday and Friday. Merchants will monitor Black Friday holiday shopping reports for consumer feedback.

“It really is a week where data dependency is key,” said Julian Emanuel, senior managing director at Evercore ISI. “The bias [for stocks] is higher unless the data continues to deteriorate and the Fed maintains its aggressive stance…which has clearly strengthened over the past 48 hours.”

Check out our full deep dive on what to expect in the week ahead here.

— Patti Domm, Tanaya Macheel

CNBC Pro: Morgan Stanley’s Mike Wilson Predicts S&P 500 Bottom, Calls It a ‘Great Buying Opportunity’

Mike Wilson, Morgan Stanley’s Chief US Equity Strategist, says we are in the “final stage” of the bear market, but the situation will remain challenging for some time to come.

He predicts when — and at what level — the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets will open lower on Monday as investors continue to monitor the uncertain economic outlook.

The UK FTSE index is expected to open 15 points lower at 7,386, the German DAX 54 points lower at 14,378, the French CAC 17 points lower at 6,629 and the Italian FTSE MIB 54 points lower at 24,445, according to data from IG.

There are no major earnings on Monday. The published data includes German producer prices for October.

— Holly Ellyatt

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