European stocks fall as investors brace for US medium-term and inflation data

According to sources close to the conglomerate, Telecom Italia’s main investor, Vivendi, wants to start talks with the newly elected Italian government to discuss plans to create a national broadband company.

Negotiations over the sale of Telecom Italia’s fixed network to state-owned lender Cassa Depositi e Prestiti have been ongoing for months.

The previous government had sponsored a plan to combine the fixed network assets of Telecom Italia with the assets of Open Fiber, a small broadband operator, to create a state-controlled nationwide network.

—Hannah Ward-Glenton

European markets opened wide lower on Monday with the pan-European market Stoxx 600 down 0.45% before paring losses to trade down 0.2%.

Banks, retail, household goods and healthcare were among the sectors that were trading in negative territory.

Chinese exports in US dollars fell 0.3% in October from a year earlier, significantly missing expectations of a 4.3% increase in a Reuters poll and a sharp decline from 5.7% growth in September.

Imports also fell 0.7%, missing forecast for a 0.1% gain over the previous year after rising 0.3% in September.

The decline in U.S. dollars last month marked the first year-on-year decline since May 2020, according to data from Refinitiv Eikon.

The yuan weakened nearly 3% against the US dollar in October, according to Refinitiv Eikon.

In yuan terms, exports rose 7 percent and imports 6.8 percent, according to customs data released on Monday.

— Evelyn Cheng

Morgan Stanley expects shares of an Asian battery materials maker to rise 85% by the end of next year.

This under-the-radar battery materials supplier for You’re herewhich is already recording triple-digit revenue growth, plans to expand manufacturing in the United States.

Even JP Morgan analysts who use a “conservative valuation approach” expect the stock to rebound 25% in one year.

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—Ganesh Rao

Speculation about reopening China led to a rally in markets last week, but Goldman Sachs economists say it’s still “months away”.

“The actual reopening is still months away as vaccination rates among the elderly remain low and case fatality rates appear high among unvaccinated people based on official data from Hong Kong,” economists led by Hui Shan said. in a note.

They added that the government is likely working on an exit strategy and the company expects the country to reopen in the second quarter of 2023.

—Jihye Lee

Tech companies face a double whammy of bad news, with disappointing earnings and continued rate hikes by the Federal Reserve both weighing on the sector.

But with heavy technology Nasdaq down more than 30% since the start of the year, analysts believe there are bright spots that could provide opportunities for investors.

Here are some of their top picks, including one title with an average upside of over 50%.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

European markets are eyeing a positive start to trading on Wednesday as investors brace for the latest monetary policy decision from the U.S. Federal Reserve.

Many analysts expect the meeting to result in an interest rate hike of 75 basis points. Investors will also be watching the central bank’s statement and Fed Chairman Jerome Powell’s press conference for signs that the pace of tightening is slowing.

London’s FTSE index is expected to open 21 points higher at 7,115, Germany’s DAX 84 points at 13,422, France’s CAC 36 points at 6,364 and Italy’s FTSE MIB 119 points at 22,771, according to the data. of IG.

Earnings will come from Next, Aston Martin Lagonda, GSK, Metro and Maersk. German unemployment data for October will also be released.

—Holly Ellyatt