Stocks, news, data and earnings
Europe stocks close lower
European stocks fells sharply Thursday, with the Stoxx 600 index closing below 440 points for the first time since March.
The U.K.’s FTSE 100 dropped 1.17% as France’s CAC 40 and Germany’s DAX shed 0.64% and 0.33%, respectively.
The London Stock Exchange limited trading to the FTSE 100, FTSE 250 and IOB securities just over 30 minutes before the end of the session, as it said it was investigating an “incident.”
“Orders in all other instruments have been expired back to users. There will not be a closing auction in affected instruments. A further update on closing prices will be provided shortly,” it said in a statement after the close.
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Stoxx 600
London Stock Exchange limits trading as ‘incident’ investigated
The London Stock Exchange said Thursday afternoon it was investigating an incident and that only FTSE 100, FTSE 250 and IOB securities were available for trading, without providing further details.
“Orders in all other instruments currently halted will now be expired,” it said in an update at 3:46 p.m. London time.
— Jenni Reid
U.S. weekly jobless claims total 198,000, fewer than expected
Initial filings for unemployment benefits dipped last week, indicating that the U.S. labor market remains tight and a potential factor in persistent inflation.
Read the full story here.
— Jeff Cox
S&P 500 opens slightly higher
The S&P 500 opened modestly up as trading kicked off.
The broad index rose about 0.2% shortly after 9:30 a.m. ET. The Dow flickered around flat, while the Nasdaq Composite added 0.4%.
— Alex Harring
Italian 10-year yield hits highest rate since 2012
The Italian 10-year yield hit its highest point since Nov. 13, 2012, rising up to 5.035% just after midday London time, according to Reuters data.
Appetite for safe-haven assets led investors to Italian bonds, Reuters analysts said, as fears persist over the ongoing Israel-Hamas war.
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Italian 10-year yield.
The U.K. gilt yield was at its highest point since Aug. 22 at 4.726%, while the German 10-year bund yield was up to its highest since Oct. 5 at 2.958%.
Bond prices move inversely to yields.
— Hannah Ward-Glenton
Renault down 7% as revenue just misses expectations
Renault saw shares fall 7% after the French carmaker reported third-quarter revenue just below consensus, as per analyst expectations reported by the Wall Street Journal.
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Renault share price.
“Renault Group achieved again a strong performance in the third quarter with total revenue increasing by 13.8% at constant exchange rates,” said chief financial officer of Renault Group, Thierry Piéton.
He said the company was confident about its profitability for the second half of the year and beyond.
— Hannah Ward-Glenton
Nestle dips 2% on missed nine-month estimates
Nestle shares dipped 2% in early trading after the conglomerate missed its nine-month sales estimate.
Sales have been dented by higher product prices, Nestle said, as consumers continue to limit their spending amid high inflation.
Nestle’s 8.4% price growth was lower than the 8.6% forecast by Reuters analysts.
Nestle CEO Mark Schneider said he was confident that real internal growth would turn positive in the second half of the year and “again become the main driver of growth going forward.”
— Hannah Ward-Glenton
Stocks on the move: Rentokil drops 14%, Telia gains 9%
Shares of pest control company Rentokil dropped 14% in early trade after it announced demand had softened in North America.
“While customer retention rates remained resilient, new residential customer acquisition was challenged by the macroeconomic backdrop and a softer consumer demand environment,” the company said in a third-quarter trading update.
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Rentokil share price.
Telecom group Telia topped the Stoxx 600 index with a 9% uptick after it increased its full-year core profit outlook.
Telia has now upgraded its EBITDA outlook for the year to low single digits. Flat-to-low single digit growth was initially forecast.
Revenue was up 4.8% for the first nine months of the year, when measured in Swedish krona.
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Telia share price.
“In the third quarter, Telia’s growth accelerated to levels not seen in many years,” CEO Allison Kirkby said in a statement.
— Hannah Ward-Glenton
Nokia shares down 2% on job cut news
Shares of Nokia were down 2% at market open after the Finnish telecom company announced it would be axing up to 14,000 jobs as part of a cost reduction plan.
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Nokia share price.
A dip in third-quarter earnings prompted the move as Nokia tried to increase operation efficiency in the “challenging market environment.”
— Hannah Ward-Glenton
CNBC Pro: ESG is ‘as crowded as ever,’ AllianceBernstein says, naming ‘high conviction’ stock ideas to play it
ESG is “as crowded as ever,” according to AllianceBernstein, which revealed “high conviction” stock ideas to play it.
In an Oct. 17 note, analysts at the global asset management firm pointed out that crowding is a “risk factor that is frequently mispriced because it is not easily observed.” They added that crowded stocks are those made based on the consensus trades expected to have high returns and near-term stability.
The extent of the crowding varies by region, the analysts wrote, naming stocks on their radar right now.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
CNBC Pro: Piper Sandler names its ‘highest conviction’ large-cap stock to own into the year-end
Piper Sandler named its “highest conviction” large-cap stock to own into the year-end, giving the stock roughly 20% potential upside from Monday’s close.
“[There’s] multiple upside levers to revenue and EPS growth over the next 3-5 years,” its analysts said.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: Here are the opening calls
European markets are expected to open lower Thursday.
The U.K.’s FTSE 100 index is expected to open 23 points lower at 7,562, Germany’s DAX down 77 points at 15,022, France’s CAC down 39 points at 6,926 and Italy’s FTSE MIB down 148 points at 27,950, according to data from IG.
Earnings are set to come from Roche, Nokia, Man Group, L’Oreal, Vivendi and Renault.
— Holly Ellyatt
