European markets open higher, recession risks, data, earnings

Stocks in motion: ITV up 9.6%, Hargreaves Lansdown down 4.4%

ITV shares rose 9.6% following a Financial Times report that it may sell a stake in its ITV Studios production arm.

ITV Studios is one of the biggest program producers in Europe and some analysts believe it could be worth more than the £2.5 billion ($2.82 billion) market capitalization of its parent company.

UK investment platform Hargreaves Lansdown was down 4.4% following slow earnings reports and the announcement of the departure of CEO Chris Hill. The company said assets under administration decreased in the first quarter of fiscal 2023.

The organization has also been hit with a multimillion-pound lawsuit over the failure of one of its former fund managers, Neil Woodford.

—Hannah Ward-Glenton

UK government bond yields fall ahead of budget statement

Yields on long-term British government bonds, known as gilts, fell ahead of new Finance Minister Jeremy Hunt’s budget statement expected later in the day.

Yields on 10-year gilts fell 19 basis points to trade around 4.129%.

The 20-year gilt yield was down about 15 basis points at the market open, while the 30-year index-linked gilt yields were down about 17 basis points.

Yields on 5- and 2-year gilts also fell on Monday.

—Hannah Ward-Glenton

Sterling strengthens after policy reversals

The pound rose on Monday morning in Asia after further reversals of policy by the British government at the end of last week. The pound was last up 0.56% at $1.1233.

CNBC Pro: Nearing retirement? How to Allocate Your Portfolio Right Now, According to the Pros

Despite market volatility, asset managers say it’s important to stay invested if you’re nearing retirement.

But how should the funds be allocated, given unstable markets, a shorter investment horizon and the need for cash on hand for retirees?

CNBC Pro asks the experts for their opinion.

Pro subscribers can learn more here.

—Weizhen Tan

China’s central bank leaves medium-term rates unchanged

The People’s Bank of China rolled over its loans under the Medium-Term Loan Facility (MLF) and kept its interest rate unchanged at 2.75%, according to a statement posted on its website.

The central bank announced it would keep the one-year rate unchanged for a second month and injected 500 billion yuan ($70 billion) through the MLF.

A Reuters poll predicted no change in the MLF rate and a partial renewal of central bank loans.

—Jihye Lee

CNBC Pro: As market volatility persists, Wall Street analysts say sell these stocks

Stocks around the world have been battered this year and major indices remain deep in negative territory.

As investors debate whether to sell or stay invested, CNBC Pro reviewed nearly 1,500 large- and mid-cap global stocks and found a number of top companies with sell or underweight ratings.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

European markets: here are the opening calls

European markets are heading for a lower open on Monday as investors watch for a deteriorating economic outlook.

Britain’s FTSE index is expected to open down 31 points to 6,819, Germany’s DAX down 60 points to 12,377 and France’s CAC down 29 points to 5,902, according to IG data.

The decline in openness in Europe comes in an increasingly pessimistic global climate; Asia-Pacific stocks fell on Monday as recession fears weighed on sentiment.

In the United States, meanwhile, stock futures traded higher early on Monday as investors awaited strong earnings reports from Bank of America on Monday, while Goldman Sachs will release the numbers on Tuesday morning. .

Last week, a higher-than-expected inflation reading stoked wild price swings in markets as investors readjusted their expectations for upcoming rate hikes from the US Federal Reserve.

On the data front in Europe, final inflation data for Italy in September is expected.

—Holly Ellyatt

CNBC Pro: Morgan Stanley’s Mike Wilson Flags Key Earnings Risk – and Names Stocks to Avoid

Morgan Stanley’s US equity team, led by Michelle Weaver and Mike Wilson, says there is a key risk to earnings on the horizon.

The investment bank named several stocks it believes will be hit the hardest over the next 3-6 months and could see their prices decline over the same period.

Pro subscribers can learn more here.

— Zavier Ong

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