Stocks, data, earnings and World Economic Forum news
The UK inflation rate is falling for the second month in December
the UK annual inflation rate It fell again in December to 10.5% – just below analyst expectations.
It was the second month of decline, after the rate eased from a 41-year high to 10.7% in November.
The UK’s Office for National Statistics said the largest contribution to change “came from transport (particularly motor fuel), clothing and footwear, leisure and culture, with higher prices in restaurants and hotels, and higher prices for food and non-alcoholic beverages offsetting the largest in part.”
CNBC Pro: Morgan Stanley says cheaper electric cars are coming – and states that global stocks will benefit
With electric vehicles becoming more and more popular, new manufacturing technology that could make them more affordable is gaining traction, according to Morgan Stanley.
The Wall Street bank said some automakers are outsourcing the process, which could benefit three major Asian parts suppliers.
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– Ganesh Rao
Oil prices rose as China reopened to optimism and demand recovery
Oil prices are being supported as China reopens to optimism and fuel demand, with OPEC anticipating that Chinese oil demand is on track to rebound.
Brent Crude futures rose 0.85% to $86.65 a barrel, while US contracts rose. Midwest Texas Futures rose 0.91% to $80.91 a barrel.
“Chinese oil demand is on the way to recovery due to the recent easing of measures to prevent the spread of the Corona virus in the country,” Monthly oil report advertiser.
She added that China’s oil demand in the first quarter will rebound from an annual decline of 0.3 million barrels per day on an annual basis in the fourth quarter of 2022 to 0.2 million barrels per day, an annual growth.
– Lee Ying Chan
CNBC Pro: Are you thinking of returning to the world of big tech? This investor is wary of 2 stocks in particular
Bank of America sees a later onset of recession
The recession probably won’t start now until later in 2023 as consumer spending has been stronger than expected and the Federal Reserve has eased as it ramps up interest rate hikes, according to Bank of America.
“We are delaying the timing of our forecast for a moderate recession in the US economy by about a quarter given the resilience of consumer spending at the expense of strong labor markets, excess saving, lower energy prices, and easier financial conditions,” the company said in a statement. Customer note. “However, we believe that the headwinds will push consumers to spend less and drive the saving rate higher as the year progresses.”
That puts a recession in the second quarter, driven by an investment-led slowdown seeping into consumer spending.
After raising the benchmark borrowing rate by 4.25 percentage points in 2022, the Fed is expected to ease, with an increase of 0.25 percentage points in February. This is expected to be followed by an additional quarter-point increase in March and May.
The company said interest rate cuts likely won’t come until 2024.
– Jeff Cox
European Markets: Here are the opening calls
European markets are heading into a mixed opening on Wednesday as investors remain uncertain about the economic outlook, a topic high on the agenda at the World Economic Forum in Davos this week.
United kingdom FTSE 100 index The index is expected to open 12 points lower at 7832, the German Dax An increase of 31 points at 15,203 points in France kk Italy rose 19 points at 7085 FTSE MIB It was up 37 points at 25,982, according to IG data.
CNBC will speak to a group of delegates at the World Economic Forum on Wednesday, including the CEOs of Unicredit, Infosys, Nokia, Aramco and Credit Suisse as well as the finance ministers of Greece and Poland and the foreign minister of Saudi Arabia, among many others. Follow our coverage here.
– Holly Ellytt