European markets open to close data, earnings and inflation news from the United States

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Bridgepoint shares are down 8.2% after the announcement of the MiQ partnership

Shares of British private equity firm Bridgepoint Group fell 8.2% by mid-afternoon on Tuesday, erasing the 9% gains seen on Monday, following a partnership announcement.

Marketing intelligence firm MiQ said it would work with Bridgepoint to improve its media solutions, with a focus on international expansion and customer growth.

—Hannah Ward-Glenton

US stocks open lower; The Nasdaq slips 2.7%

U.S. stocks opened lower on Tuesday after the release of warmer-than-expected inflation data.

The Dow Jones Industrial Average was down 1.6% in early morning trading, while the S&P 500 was down 2% and the Nasdaq was down 2.7%.

— Karen Gilchrist

US stock futures fall after inflation report

Stocks in motion: Future up 8%, Ocado down 10%

Shares of Future Plc gained 8.7% on early afternoon trades to top the Stoxx 600, after the British media company forecast adjusted operating profit for the year complete would be at the top of market expectations.

At the bottom of Europe’s blue chip index, British grocery tech firm Ocado plunged more than 10% after warning of a full-year sales slump as consumers grapple with runaway inflation.

-Elliot Smith

The Fed will pivot in 3 stages, according to author Nomi Prins

According to author Nomi Prins, the US Federal Reserve could be forced to deviate from its path of aggressive interest rate hikes in three steps.

Markets expect the central bank to adopt a third consecutive 75 basis point hike at its monetary policy meeting later this month, the fastest pace of monetary tightening since policymakers began to tighten. using the benchmark federal funds rate as the primary policy tool in the early 1990s.

Various Fed officials have reiterated the Federal Open Market Committee’s commitment in recent weeks to controlling inflation, but Prins told CNBC on Tuesday that the acceleration of interest rate hikes to appease markets was disconnected from the economic reality that many face.

-Elliot Smith

Ocado shares fall after sell-off warning as cost of living pressures hit

Ocado delivery vans in London on January 21, 2022.

Mike Kemp | In pictures | Getty Images

British grocery delivery company Ocado led the first European stock losses after forecasting a slight decline in 2022 sales and ‘close to break-even’ profits.

The company slid 13.05% in the first hour of trading. He said customers were choosing cheaper products and reducing their shopping carts as the UK faced a steep rise in the cost of living and many workers returned to the office.

“As a result, the average basket value fell by 6% over the period to £116, with a larger decline later in the quarter during the peak summer holiday season,” the company said in a statement.

“Despite positive customer growth, the accelerating decline in trade and shrinking baskets, particularly in recent weeks, means that we now expect a slight decline in sales in FY22 and to an EBITDA close to break-even.”

—Jenni Reid

UK unemployment hits lowest level in 48 years as real wages fall sharply

Unemployment in the UK fell to 3.6% in the three months to July, its lowest level since 1974.

The economic inactivity rate, meanwhile, rose 0.4 percentage points to a five-year high of 21.7%.

The Office for National Statistics attributed the change to an increase in long-term illness designations and students leaving the workforce. The growing tightness of the labor market could fuel further inflationary pressures and cause headaches for the Bank of England.

Annual real wage growth—adjusted for inflation—excluding bonuses fell 2.8% in the three months to end-July.

“People will naturally look to their employers for help during the cost of living crisis, while Andrew Bailey hopes companies don’t raise wages too quickly and make inflation worse “said Marcus Brookes, chief investment officer at Quilter Investors.

“However, the UK must prepare for public sector discontent with pay strikes continuing as budgets are stretched.”

-Elliot Smith

UBS plans to increase its dividend; shares rise in pre-market

UBS Group plans to increase its dividend by 10% to $0.55 per share and expects its share buybacks in 2022 to exceed $5 billion, the Swiss bank announced on Tuesday.

UBS shares were listed up 1.2% in pre-market activity after what ZKB analyst Michael Klien called another surprise.

Learn more here.

—Reuters

Stocks in motion: Future up 5%, Ocado down 12%

Shares of Future Plc gained 5.5% in early trading to top the Stoxx 600 after the UK media company forecast full-year adjusted operating profit to top expectations of the market.

At the bottom of Europe’s blue chip index, British grocery tech firm Ocado plunged more than 12% after warning of a full-year sales slump as consumers grapple with runaway inflation.

CNBC Pro: Forget oil — coal is hot right now. Here are 2 actions to play it, according to the pros

Coal mining in Wyoming.

Brian Brainerd | Denver Post | Getty Images

Coal prices are at record highs and market watchers see prices rising further as a global energy crisis looms.

“It’s almost like any or all companies are a buy,” analyst Peter O’Conner said of the booming coal sector, and revealed his favorite stock.

CNBC Pro subscribers can learn more here.

— Zavier Ong

Relief rally is likely a bear market bounce, says Wells Fargo

According to Wells Fargo, the recent relief rally in equities is likely another bear market bounce and investors should position themselves for more turmoil to come.

“Year-do-date, the outperformance of defensive, high-return, high-quality, low-valuation stocks reminds investors of the hallmark of a bear market,” wrote Chao Ma, global portfolio and investment strategist. , in a Monday note.

Such reversals occur in nearly every bear market and many are quickly reversed, leaving investors with regrets, they added.

“While it is difficult to predict the bottom of a bear market, in the past, market bottoms were generally preconditioned by overly pessimistic market sentiment and a sign of definite improvement in the economic or undervalued market problem. underlying,” Ma said. “We don’t think we’re there yet either way.”

In the meantime, Ma recommends investors look for defensive stocks with low volatility, high dividends and buyback yields. He also says that investors should go for high-quality names with leading profitability and market share and an affordable market price.

—Carmen Reinicke

US stock futures rise ahead of Tuesday’s CPI report

U.S. stock futures were up Monday night as Wall Street eagerly awaits the August consumer price index report due out Tuesday morning. The report will give investors an update on the inflation situation in the United States and is one of the last data the Federal Reserve will see before its September meeting.

Dow Jones Industrial Average futures gained 55 points, or 0.17%. S&P 500 and Nasdaq 100 futures rose 0.18% and 0.21%, respectively.

—Carmen Reinicke

CNBC Pro: Want to invest in real estate? These REITs are among analysts’ favorites

Real estate investment trusts – or REITs – are back in the spotlight after a volatile year for many asset classes.

Morgan Stanley and Citi analysts highlight REITs in two sectors they believe could outperform the broader market and remain resilient in a downturn.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

European markets: here are the opening calls

According to IG data.

The data releases include preliminary eurozone unemployment data for the second quarter as well as gross domestic product for the second quarter. The latest UK inflation figures for July will be released along with the preliminary Dutch Q2 GDP.

Revenue comes from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.

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