Riksbank raises interest rate by 100 basis points, says ‘inflation is too high’
Sweden’s Riksbank launched on Tuesday a 100 basis point increase to interest rates, raising the base interest rate to 1.75%, as he warned that “inflation is too high”.
The central bank said in a statement that high inflation “undermines the purchasing power of households and makes financial planning for companies and households more difficult.”
– Elliot Smith
German producer prices rose 45.8% year-on-year in August
The German Federal Statistical Office said on Tuesday that producer price inflation reached 45.8% year-on-year in August, driven by higher energy prices.
The reading significantly beat the Dow Jones expectations of 37.9%, while the monthly producer price index rose 7.9% versus the 1.6% expectation.
With that said, the PPI excluding energy was 0.4% on the month and 13% on the year.
– Elliot Smith
Stock action: Bashem Holdings is up 13%, and the future is down 12%.
There were some big moves in stock prices in early European trade. Swiss biotechnology company Bashem Holding Company It rose 13% to lead the Stoxx 600 after signing two new peptide contracts.
British media company future PLC It fell more than 12% after Sky News reported on Monday that CEO Zillah Byng-Thorne plans to step down in 2023.
– Elliot Smith
CNBC Pro: Fund manager says bear market will turn ‘bad’
Fund manager Cole Smid believes the stock market is still in the early stages of a bear market – and warns that it will not be a “diversified” market.
But he does not lose any sleep on it. Here is the reason:
Professional subscribers can Read more here.
– Xavier Ong
Stocks ended Monday’s choppy session higher
Stocks swung on Monday but ended the session in positive territory as a big week for the Federal Reserve kicked off.
The Dow Jones Industrial Average closed up 197.26 points, or 0.64%, to settle at 31,019.68. The S&P 500 jumped 0.69% to 3,899.89 and the Nasdaq Composite rose 0.76% to 11,535.02.
– Samantha Sobin
CNBC Pro: Goldman says copper demand is about to rise. Below are the stocks that are expected to benefit from it
There could be a copper shortage on the horizon, as demand is set to pick up on a rush to net zero — and some metal stocks could shine in that scenario, according to Goldman Sachs.
CNBC Pro subscribers can read more here.
– Weezin Tan
European markets: here are the opening calls
European shares are expected to open their doors in negative territory on Wednesday as investors react to the latest US inflation data.
The UK FTSE is expected to fall 47 points at 7341, the German DAX 86 is down at 13106, the French CAC 40 is down 28 points, and the Italian FTSE MIB is down 132 points at 22010, according to data from IG.
Global markets fell after a higher than expected US Consumer Price Index The Bureau of Labor Statistics reported Tuesday that an August report that showed prices rose 0.1% for the month and 8.3% annually in August, defying economists’ expectations that headline inflation will fall 0.1% on a monthly basis.
Core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.
UK inflation figures are due for August, and Eurozone industrial production for July will be published.
– Holly Eliat
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