Euro zone GDP, Fed meeting in focus

Stocks on the move: Unicredit up 11%, Philips down 5.8%

UniCredit continued to trade higher in afternoon trade, rising 11% after Tuesday’s bumper earnings report.

On the other hand, German arms maker Rheinmetall fell to the bottom of the benchmark, down 6.4% and Philips fell 5.8% on news that it plans to cut its workforce by 13%.

– Karen Gilchrist

US stocks open higher

U.S. stocks opened slightly higher on Tuesday as traders ended a strong month for stocks.

The Dow Jones Industrial Average was flat in early trade, while the S&P 500 was 0.1% higher. The Nasdaq also rose 0.2%.

– Karen Gilchrist

The euro zone economy shows surprising growth in the fourth quarter, easing fears of a recession

The euro area grew by 0.1% in the last quarter of 2022, according to Eurostat’s preliminary data released on Tuesday.

Energy prices cooled in the second half of the year, providing some relief to the wider eurozone economic indicators.

The latest data comes after eurozone GDP rose 0.3% in the third quarter.

Germany surprised negatively at the level of national distribution. Europe’s largest economy shrank by 0.2% in the last quarter of 2022, and analysts now expect a recession in Berlin.

— Sylvia Amaro

UK food price inflation hits record 16.7%

In the United Kingdom, food price inflation hit a record high of 16.7% in the four weeks to January 22, up 2.3% from the previous month, market research firm Kantar said on Tuesday.

The figure, which is the highest since 2008, when the company began tracking data, reflects the deepening cost-of-living crisis in the country, which has seen shoppers trade in name-brand foods for own-brand labels and discount retailers.

Consumers have felt the pinch in food prices as inflation soars.

Nathan Stirk | Getty Images News | Getty Images

“We thought inflation was coming down; the fact that it’s back up is not great news,” Fraser McKevitt, Kantar’s head of retail and consumer insights, told CNBC. Grocers have “notably increased their label selections as sales of these lines continued to increase over the past nine months.”

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Own-label lines grew by 9.3% in the period, while off-price retailer Aldi became the fastest-growing grocer for the fourth month in a row, ahead of Lidl.

– Karen Gilchrist

A recession in Europe and the US remains highly likely, says the portfolio manager

A recession in Europe and the US remains highly likely, says the portfolio manager

Data released on Tuesday showed French economic growth slowed to 0.2% to 0.1% in the fourth quarter, while German retail sales unexpectedly fell in December.

Joost van Leender, senior portfolio manager at Kempen Capital Management, told CNBC that these and other indicators mean the picture for 2023 is “not that strong” and the possibility of a recession in Europe and the US “is still firmly on the agenda.”

– Jenny Reid

Stocks on the move: UniCredit up 7.5%, Rheinmetall down 6%

UniCredit was the best performer in early trade, rising 7.5 percent after the bank promised to pay out 5.25 billion euros ($5.69 billion) to shareholders after a profit boost.

German arms maker Rheinmetall fell 6% despite announcing yesterday that it had won a US military contract, as well as General Motorsto deliver up to 40,000 trucks worth up to $14 billion.

– Jenny Reid

European markets open lower on look at GDP data, central bank meetings

Europe’s Stoxx 600 index opened down 0.2%, extending Monday’s slide, as investors braced for a flash estimate of euro zone GDP.

Figures released early Tuesday from France, the bloc’s second-largest economy, showed growth slowed from 0.2% to 0.1% in the fourth quarter of 2022. However, it exceeded expectations.

Most sectors were in the red in early trade, led by financial services, which fell 0.8%.

However, banks rose 0.6% as UniCredit and UBS beat earnings expectations.

Stoxx 600 One Week Performance.

Central bank rate hike decisions due in the US on Wednesday and in the UK and the Eurozone on Thursday are also dominating markets this week.

– Jenny Reid

UniCredit raises payout target by 40% after record profit.

UniCredit's CEO says the bank's transformation is not yet complete
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UniCredit pledged to return 5.25 billion euros ($5.69 billion) to investors on Tuesday after posting its best profit in more than a decade.

The bank said net profit reached 2.46 billion euros in the three months to December, more than double the average forecast of 1.10 billion euros ($1.2 billion) among analysts polled by the bank.

UniCredit said it expects net profits in 2023 to be broadly in line with 2022, including the Russian business, after it dropped it from its profit target last year following Russia’s invasion of Ukraine.

It has failed to break out of Russia, where it owns the top 15 lenders.

One-year share price of UniCredit.

Swiss bank UBS gets a boost from higher interest rates, beating expectations in the fourth quarter

UBS CEO says this has been

UBS’s fourth-quarter profit beat market expectations, but the Swiss banking giant reported a fall in revenue due to weaker client activity and warned of a “precarious” year ahead.

In the fourth quarter of last year, the bank reported a net income of $1.7 billion, bringing its full-year profit to $7.6 billion in 2022.

Looking ahead, the Swiss lender said earnings for the first quarter of 2023 will be “positively impacted” by customer activity and rising interest rates, as well as the easing of Covid-19 restrictions in Asia.

However, it was cautious about the broader economic outlook, citing central bank action as a potential catalyst for market volatility.

UBS said it will buy back more of its own shares this year.

Read the full story here.

— Sylvia Amaro

European Markets: Here are the opening calls

European markets are headed for a lower open on Tuesday as investors focus on the next meeting of the US Federal Reserve starting today. The two-day meeting will conclude on Wednesday with an announcement on the central bank’s latest interest rate decision.

of the United Kingdom FTSE 100 The index is expected to open 26 points lower at 7,758 in Germany DAX 79 points lower – 15,052, in France CAC by 40 points to 7049 and Italy FTSE MIB Down 125 points to 26,260, according to IG.

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Earnings come from Pets at Home, UBS and Spotify, and data releases include fourth quarter gross domestic product data for the euro zone. Preliminary German and French inflation data for January are also scheduled to be released.

— Holly Elliott

CNBC Pro: What one tech fund manager expects from Apple and Alphabet’s earnings this week

'Dark cloud' looming over Alphabet shares, tech fund manager says ahead of earnings

Microsoft issued a disappointing earnings forecast last week, but its stock has rallied since then. What does this mean for other Big Tech companies planning to report earnings?

Tech fund manager Jeremy Gleeson, who runs the £1.1 billion ($1.5 billion) AXA Framlington Global Technology Fund, said there was enough bad news on Microsoft’s earnings to “scare” investors into selling shares.

Still, the fact that the stock rose more than 2% afterward is an “encouraging” sign for the rest of Big Tech’s earnings, Gleason told CNBC’s “Squawk Box Europe.”

He shared his thoughts on what to expect from Apple and Alphabet this week.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Tesla shares surged 30% last week. Here’s where Wall Street sees it going next

Just last week, shares of the electric vehicle maker surged more than 30% after its earnings announcement. Tesla shares are up about 44% so far this year.

This follows a dismal 2022, when Tesla shares fell more than 35% in December and about 65% for the year.

After all that volatility, here’s where Wall Street analysts see the stock going:

CNBC Pro subscribers can read more here.

— Weizen Tan

CNBC Pro: Can Chinese stocks rally? One investment bank thinks so and names its top stock picks

The recovery in Chinese stocks strengthened on Monday as China’s benchmark index came within striking distance of a bull market.

Bernstein analysts believe the rally needs to go further and reveal their top stocks to play it.

Pro subscribers can read more here.

— Zavier Ong


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