Euro zone sentiment jumps by more than expected in November
Economic sentiment in the euro zone rebounded by slightly more than expected in November, improving for the first time since Russia’s invasion of Ukraine in February.
The economic sentiment indicator produced by the European Commission rose to 93.7 in November from 92.7 in October, slightly above consensus projections of 93.5 in a Reuters poll of economists.
Sentiment in industry deteriorated sharply, but was offset by a significant spike in services sentiment, while inflation expectations among both consumers and businesses also plunged.
– Elliot Smith
Credit Suisse shares hit record low
Credit Suisse shares slid to a fresh record low on Tuesday as investors offloaded subscription rights to new shares in the embattled Swiss lender.
Shares were down 3.4% by late morning to trade at just over 2.9 Swiss francs as the subscription rights plummeted on their second day of trading in Zurich, while five-year credit default swaps — a form of insurance on the company’s bonds — shot to an all-time high.
Shareholders last week approved the bank’s planned $4.2 billion capital increase, which is intended to fund a massive strategic overhaul after years of investment bank underperformance and compliance failures.
— Elliot Smith
China pushes for vaccination among elderly population
Chinese health authorities said that officials are “closely watching” the developments of Covid when asked if protests in the region would lead to shifts in its zero-Covid policy. CNBC’s Karen Tso and Geoff Cutmore discuss the market reaction to the press briefing.
Stocks on the move: ASMI up 6%, Bridgepoint down 4%
ASM International shares climbed 6.5% in early trade to lead the Stoxx 600 after the Dutch semiconductor company upgraded its fourth-quarter guidance.
At the bottom of the index, British private equity firm Bridgepoint Group slid 4.7% after media reports suggested the firm is considering a $1 billion acquisition of energy transition investsor Energy Capital Partners.
China likely won’t make sudden changes to its Covid policy: National University of Singapore
The Chinese government is unlikely to make sudden changes to its zero-Covid policy as that will bring chaos, National University of Singapore Professor Wang Gungwu said on CNBC’s “Squawk Box Asia.”
“If you change the policy suddenly, I think the damage and the consequences would be even worse — it’d be really chaotic because I think the spread of Covid will be absolutely unprecedented,” said Wang.
He added that he expects Chinese leader Xi Jinping to make adjustments on more local levels to ease public dissent.
Wang said Xi doesn’t want to officially admit the “policy has been wrong for quite a while,” but also cannot change it immediately.
– Jihye Lee
Oil prices jump more than a dollar ahead of China briefing
Oil prices climbed ahead of a press conference which will be held by China’s State Council, as investors continue to monitor developments – paring some losses seen on Monday, when it reached the lowest levels in almost a year.
The West Texas Intermediate futures climbed up 1.76% to stand at $78.59 per barrel, while the Brent crude futures climbed 2.28% to stand at $85.00 per barrel.
However, oil markets may be “misjudging news of China’s lockdown,” Rystad Energy wrote in a note.
“[The latest lockdowns’] likely effect on China’s short-term oil demand, particularly in transportation, is likely to be minor,” the note added, citing the company’s own research of real-traffic activity in China.
Even with daily Covid cases continuing to climb, cities like Shanghai have not shown a slowdown in road traffic activity, according to Rystad Energy’s own research.
— Lee Ying Shan
CNBC Pro: Asset manager names 9 ‘cheap’ stocks to buy as recession fears grow
It’s “critical” for investors to be looking at valuations right now as a recession is looming and inflation looks likely to continue, said Steven Glass, managing director of Pella Funds Management.
In this environment, Glass selected a list of nine stocks that he said, “look particularly cheap given their growth outlook.”
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: Here are the opening calls
European markets are heading for a mixed on Tuesday as investors keep a close eye on China amid speculation that the government could make changes to its strict zero-Covid policy.
The U.K.’s FTSE index is expected to open 46 points higher at 7,494, Germany’s DAX down 3 points at 14,401, France’s CAC up 2 points at 6,675 and Italy’s FTSE MIB up 27 points at 24,523, according to data from IG.
Earnings come from Easyjet and data releases include euro zone consumer confidence and business climate data for November.
— Holly Ellyatt