Barclays: Markets rallied on rate cut hopes, but ‘we don’t see it’

Expectations of rate cuts in early 2024 — aided by a dovish shift in tone from the U.S. Federal Reserve, along with promising inflation prints in the U.S. and euro one — have powered a recent global market rally.

But Barclays strategists say they “don’t see it” and “remain sceptical that the pace of disinflation can be sustained.”

“We caution further falls in inflation will be more difficult from here, especially against still-robust demand and labour-market dynamics in the U.S.,” the British lender’s FICC Research division said in a note on Monday.

“We still see the first cuts from the ECB in July, the BoE in August and the Fed in December.”

– Elliot Smith

MON, DEC 4 20234:35 AM EST

European shares nudge lower as miners, energy stocks sink

The pan-European Stoxx 600 was down 0.3% by mid-morning, with mining stocks shedding 2.1% to lead losses while oil and gas stocks dropped 1.8%.

MON, DEC 4 20233:39 AM EST

Stocks on the move: Nokia down 5%, UCB up 4%

Nokia shares slipped 5.5% by early afternoon on rumors that AT&T may remove the Finnish mobile network provider from its vendor list. The rumor was seemingly sparked by a LinkedIn post from EJL Wireless Research President Earl Lum.

At the top of the Stoxx 600, Belgian pharmaceutical company UCB climbed more than 4% after the European Commission approved its new Zilbrysq drug for adults with generalized myasthenia gravis, an autoimmune disorder.

– Elliot Smith

MON, DEC 4 20233:18 AM EST

A mixed open for Europe

The pan-European Stoxx 600 hovered just below the flatline in early trade, with mining stocks shedding 1.5% to lead loses while retail stocks added 0.8%.

MON, DEC 4 20232:16 AM EST

Here are the opening calls

Britain’s FTSE 100 is seen around 21 points lower at 7,508 Germany’s DAX is set to add around 14 points to 16,412 and France’s CAC 40 is expected to drop around 7 points to 7,339.

SUN, DEC 3 20237:10 PM EST

CNBC Pro: Morgan Stanley fund manager names 4 top stocks to buy ‘on the cheap’

Stocks have faced a mixed environment this year, according to one portfolio manager — but several should provide good investment opportunities looking ahead following a broadening of the market.

When pressed on what stocks make good plays, Dunn responded with four names, adding: “There’s a lot of opportunities out there to pick up really good companies on the cheap.”


— Amala Balakrishner

SUN, DEC 3 20237:10 PM EST

CNBC Pro: Here’s where to invest $250,000 for the next 5 years

Major changes have taken place in the economy over the past five years.

A long-standing zero-interest rate regime has given way to rising rates, leading to higher borrowing costs — a situation usually bad for stocks.

But the red-hot inflation that characterized the past couple of years is now cooling, raising several questions for investors: How will this affect stocks and interest rates?

CNBC Pro spoke to financial advisors and investment experts to find out how they would allocate $250,000 over the next five years. They came up with three types of portfolios that cater to investors with different risk appetites.

CNBC Pro subscribers can read more here.

— Weizhen Tan

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