European stocks close higher after big week for earnings and central banks;  Stoxx 600 up 1.9%

European stocks close higher after big week for earnings and central banks; Stoxx 600 up 1.9%

Stocks in motion: Adidas up 20%, Leonardo down 7%

German sportswear brand Adidas jumped 20% to the top of the Stoxx 600 in afternoon deals on Friday after announcing new collaborations following its split from artist Kanye West.

At the other end, Italian aerospace and defense company Leonardo fell 7% after it released its full-year forecast on Thursday.

— Karen Gilchrist

US stocks open higher

US stocks opened higher on Friday as investors digested the October jobs report and its potential impact on future interest rate hikes.

The Dow Jones Industrial Average rose 1.1% in early trades, while the S&P 500 traded up 1.2%. The Nasdaq Composite also rose 1%.

— Karen Gilchrist

Lagarde: ECB could tighten policy faster if high inflation persists

The European Central Bank is ready to tighten monetary policy more aggressively if the current record inflation rate persists and expectations rise, President Christine Lagarde said in a speech in Estonia on Friday.

“If we were to see, for example, inflation becoming more persistent and expectations likely to become unanchored, we could not wait for the full impact of policy measures to materialize,” Lagarde said.

“We would need to take additional steps until we are more confident that inflation will return to target in a timely manner.”

-Elliot Smith

Jobs reports ‘nail in the coffin’ of Fed pivot hopes

According to Ron Temple, head of U.S. equities at Lazard Asset Management, Friday’s strong U.S. jobs report was “another nail in the coffin” of hopes for an accommodative monetary policy pivot from the Federal Reserve. American.

“The U.S. economy continues to create far more jobs than population growth can accommodate, putting upward pressure on wages and prices,” Temple said.

“The Fed has attacked the inflation challenge aggressively, but will be forced to stay on the offensive as long as labor markets remain resilient.”

-Elliot Smith

US payrolls jumped 261,000 in October

Bank of England chief economist warns of ‘tough trade-offs’ for inflation to hit 2%

The Bank of England's chief economist warns of a

Huw Pill, chief economist at the Bank of England, discusses the central bank’s latest rate hike and the delicate balance of monetary policy tightening combined with economic risks.

Eurozone data bolster fears of winter recession

October’s latest reading of the S&P Global PMI (Purchasing Managers Index) for the euro zone – seen as a reliable indicator of economic health – painted a gloomy picture on Friday as high inflation and fears of a worsening energy crisis have hammered demand.

The final reading of the composite PMI – which captures services and manufacturing – fell to a 23-month low of 47.3 in October from 48.1 in September, with anything below 50 indicating contraction. However, the reading was slightly higher than a preliminary estimate of 47.1.

-Elliot Smith

Stocks in motion: Andritz up 10%, Leonardo down 6%

Although earnings season is coming to an end, third-quarter reports remained a key driver of individual stock price action in Europe on Friday.

Andritz Shares jumped 10.8% early in the afternoon to top the Stoxx 600 after the Austrian industry group massively beat third-quarter earnings expectations.

At the bottom of the index, the Swedish real estate company SBB fell 8%, while Italian aerospace and defense company Leonardo fell more than 6% after its third-quarter trading update.

Bank of England chief economist suggests traders are wrong

The Bank of England remains committed to its “key objective” of lowering inflation, but hopes markets will “re-anchor” their interest rate expectations, chief economist Huw Pill told CNBC on Friday. .

The central bank raised interest rates by 75 basis points on Thursday, its biggest rise since 1989, but also warned of a prolonged recession and suggested market prices for future rate hikes were too high. students.

What we’re looking to do, we’re always looking to do, is find that balance that gets us back to our 2% inflation target without generating unnecessary and costly problems on the real side of the economy,” he said. said Pill.

Read the full story here.

-Elliot Smith

Here are the opening calls

Great Britain FTSE100 is seen around 11 points higher at 7,235, Germany DAX should improve by around 8 points to 13,184 and France CAC 40 should add about 12 points to 6,284.

-Elliot Smith

Oil prices rise amid loosening dollar and speculation over changing China’s stance on Covid

Oil prices rose on the heels of a decline in the US dollar index and speculation that China was easing its Covid restrictions.

Brent futures added 2%, to settle at $96.56 a barrel, while United States West Texas Intermediate rose 2.21% to $90.12 a barrel.

— Lee Ying Shan

CNBC Pro: This tech stock is a ‘screaming buy’ right now: Ritholtz’s Josh Brown

CNBC Pro: Morgan Stanley Says This Global Biotech Stock Could Soar 398% Next Year

Morgan Stanley analysts believe the stock of a global biotech company could soar 398% next year.

The company’s latest regenerative drug has completed Phase 2 trials in Japan and the United States and is awaiting final approval.

Analysts believe it will be a “major contributor to long-term earnings” once approved.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

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