European markets open lower
European markets opened broadly lower on Monday with the pan-European Stoxx 600 down 0.45% before paring losses to trade 0.2% lower.
Banks, retail, household goods and healthcare were among the sectors trading in negative territory.
China’s October exports mark first year-on-year drop since May 2020
China’s exports in U.S. dollar terms fell 0.3% in October from a year earlier, significantly missing expectations for an increase of 4.3% in a Reuters poll and a steep decline from 5.7% growth in September.
Imports also fell 0.7%, missing forecasts for a 0.1% gain from a year earlier after rising 0.3% in September.
The decline in U.S.-dollar terms last month marked the first year-on-year drop since May 2020, according to Refinitiv Eikon data.
The yuan weakened by nearly 3% against the U.S. dollar in October, according to Refinitiv Eikon.
In yuan terms, exports rose by 7% and imports by 6.8%, customs data released Monday showed.
— Evelyn Cheng
CNBC Pro: Morgan Stanley says this global battery material stock could soar by over 80%
Morgan Stanley expects shares in an Asian battery materials maker to rally by 85% by the end of next year.
This under-the-radar battery materials supplier to Tesla, which already has triple-digit revenue growth, plans to expand manufacturing into the United States.
Even JP Morgan’s analysts who use a “conservative valuation approach” expect the stock to rally by 25% in a year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
China reopening still ‘months away’ despite talk of preparations: Goldman Sachs
Speculation of China’s reopening led to a rally in markets last week, but economists at Goldman Sachs say that it’s still “months away.”
“The actual reopening is still months away as elderly vaccination rates remain low and case fatality rates appear high among those unvaccinated based on Hong Kong official data,” economists led by Hui Shan said in a note.
They added that the government is probably working on an exit strategy, and that the firm expects the country to reopen in the second quarter of 2023.
— Jihye Lee
CNBC Pro: There are still opportunities in tech — here’s how to trade it: Analysts
Tech firms are facing a double whammy of bad news, with disappointing earnings and continued rate hikes by the Federal Reserve both weighing on the sector.
But with the tech-heavy Nasdaq down more than 30% year-to-date, analysts say there are some bright spots that could offer opportunities to investors.
Here are some of their top picks, including one stock with an average upside of over 50%.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: Here are the opening calls
European markets are looking at a positive start to trading on Wednesday as investors gear up for the latest monetary policy decision from the U.S. Federal Reserve.
Many analysts expect the meeting will result in a 75 basis point interest rate hike. Investors will also monitor the central bank’s statement and Fed Chair Jerome Powell’s press conference for signs of a slowing the tightening pace.
London’s FTSE index is expected to open 21 points higher at 7,115, Germany’s DAX up 84 points at 13,422, France’s CAC up 36 points at 6,364 and Italy’s FTSE MIB up 119 points at 22,771, according to data from IG.
Earnings will come from Next, Aston Martin Lagonda, GSK, Metro and Maersk. German unemployment data for October will also be released.
— Holly Ellyatt
Read More: European stocks open lower as investors gear up for U.S. midterms and inflation data