European markets decline as investors absorb more interest rate hikes

Market open: Fortum up 4%, Accor down 6%

Shares of Fortum rose again in early trading Thursday after the Finnish company agreed to sell its 56% stake in German utility company Uniper to the German government. The state-owned energy company transferred its stake in the nationalization deal.

French hospitality company Accor saw its shares fall 6.3% at the market open after JP Morgan lowered its rating on the stock from neutral to underweight. The investment bank expressed concerns that the group would not be able to return to its previous level of profitability, saying, “Our fears now exceed the reasons we love.”

– Hannah Ward Glinton

Credit Suisse plans to split its investment bank into three: Financial Times

According to the Financial Times, Credit Suisse plans to split its investment bank into three.

The Swiss lender wants to have a separate “bad bank” exclusively for risky assets as it recovers from several years of scandals and blunders.

New proposals suggest Credit Suisse will sell some of its profitable units as part of the radical adjustment, and full plans are expected to be announced in the bank’s third-quarter results on October 27, the Financial Times reports.

– Hannah Ward Glinton

Oil prices rise after Fed raises rates, demand concerns remain

Oil prices rose after the third consecutive rate hike by the Federal Reserve.

Reuters also reported that Chinese refiners expect the nation to export up to 15 million tons of oil product export quotas for the rest of the year, citing people familiar with the matter.

Brent crude futures rose 0.45% to $90.24 a barrel, while Brent crude futures rose 0.45% to $83.3 a barrel.

– Lee Ying Shan

JPMorgan says Fed hike likely to keep Asian risk assets under pressure

Asian risk assets, especially export-oriented companies, will remain under pressure in the short term after the Federal Reserve raises interest rates, according to Tai Hui, chief market strategist for Asia Pacific at JPMorgan Asset Management.

Tai added that the strong US dollar is likely to continue, but monetary policy tightening in most Asian central banks – with the exception of China and Japan – should help limit the extent of the decline in the Asian currency.

The US dollar index, which measures the greenback against a basket of its peers, rose sharply and last settled at 111,697.

– Abigail

CNBC Pro: This fund manager is outperforming the market. This is what he is betting on

Stock markets are down but the fund managed by Patrick Armstrong at Plurimi Wealth continues to generate positive returns. The fund manager owns a number of short positions to deal with market volatility.

Professional subscribers can read more here.

– Xavier Ong

CNBC Pro: Morgan Stanley’s Mike Wilson names the key feature he loves about stocks

Morgan Stanley’s Mike Wilson remains on the defensive amid ongoing market volatility this year. Names the main feature he looks for in a stock.

Stocks with this trait have been “rewarded” this year, and the trend is likely to continue until the market turns further up, according to Wilson.

Professional subscribers can read more here.

– Xavier Ong

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 report for August that showed prices rising 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying economists’ expectations that core inflation. It will decrease 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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