Stock market trends: Tesco up 5%, Ocado down 2.5%
shares Tesco Afternoon trading rose 5% as investors digested strong gains Profit throughout the year From a British supermarket chain.
Meanwhile, UK online grocery retailer Ocado It fell 2.5%, indicating intensified competition in the industry.
— Karen Gilchrist
U.S. stocks fall after inflation data beats expectations
Dollar rises after inflation heats up
this Dollar Prices strengthened on Wednesday after data showed U.S. inflation rose more than expected in March.
The U.S. dollar index rose 0.65% at 2 p.m. in London.
this EUR It fell 0.76% against the U.S. dollar to $1.0772, while GBP It fell 0.62% to $1.2597.
—Jenny Reed
CPI rose more than expected in March
A key U.S. inflation gauge came in higher than expected, raising concerns that the Federal Reserve may not cut interest rates this year.
Consumer prices in March rose 0.4% from the previous quarter. An increase of 3.5% compared with the same period last year. Economists surveyed by Dow Jones expected a quarterly increase of 0.3% and an annual increase of 3.4%.
The CPI increase accelerated again in March compared with February, when the increase was 3.2%.
The core consumer price index (CPI), which excludes volatile food and energy prices, also rose more than expected last month.
— Fred Ambert
Accor’s CEO says that as a French company, luxury goods are “an area we can be involved in”
French hotel giant Accor CEO Sébastien Bazin told CNBC’s Charlotte Reed on Tuesday that it has a unique role to play in the booming luxury industry.
Bazin said he believes luxury cars will grow more strongly in the future than mid-level premium economy cars.
“It’s more difficult, requires more investment, more human capital, and more experience-driven. You can’t fail, but the rewards are greater,” Bazin said.
“This is probably a niche that we can play with our roots in France. Half of all luxury products happen to be French-born. Americans don’t play this game much, and neither do the Chinese,” he added.
Bazin said this would include focusing on the heritage and history of brands such as Orient Express, among which Accor acquired In 2017, it held 50% of the shares. The company plans to relaunch the iconic rail service in 2025.
—Jenny Reed
Strategists say markets are unlikely to be rattled by inflation data
On Friday, March 22, 2024, Federal Reserve Chairman Jerome Powell attended the Federal Reserve Listening Event in Washington, DC, the United States. Three central bank decisions this week sent a clear message to markets: Officials are preparing to ease monetary policy, which has reignited investors’ risk appetite.
Bloomberg | Bloomberg | Getty Images
Strategists said the latest U.S. inflation data released on Wednesday, even at a high level, is likely to have a limited impact on markets.
The CPI report will be released at 8:30 a.m. ET.
Viktor Hjort, global head of credit strategy at BNP Paribas, said, “As long as inflation is just sticky, as it has been recently, market sentiment will remain calm. Economic growth is strong and inflation has been sticky. The Fed is sticky The attitude is quite relaxed.” BNP Paribas told CNBC’s “Squawk Box Europe.”
Hult said this will continue unless inflation starts rising again, which would put the prospect of raising interest rates back on the table.
Julien Lafargue, chief market strategist at Barclays Private Bank, said in a report on Wednesday that the market expects inflation to exceed expectations as bets on a rate cut in June have decreased.
“Importantly, Fed speakers have often emphasized that they need two lower inflation rates to be convinced that a rate cut is justified.”
He pointed out that before the June meeting, two consumer price index data will be released after Wednesday, as well as two personal consumption expenditure index data.
“With that in mind, the upcoming data may not be as significant as the headlines suggest,” LaFargue said.
—Jenny Reed
Mercedes-Benz sales drop 6% in first quarter
On June 8, 2017, an employee performed final inspections on a Mercedes-Benz C-Class sedan at the Mercedes-Benz U.S. International Plant in Vance, Alabama.
Andrew Caballero Reynolds | AFP | Getty Images
german car manufacturer Benz The company sold 568,400 cars and trucks in the first quarter, down 6% from the same period last year. report Wednesday.
Sales of pure electric vehicles fell even further, reaching 9%.
The company said supply chain bottlenecks were limiting passenger car sales.
Asia performed the worst, with sales falling 15%.
After the news was announced, Mercedes-Benz shares rose 1.1%.
European rivals reported stronger sales in the quarter, including Renault Transaction volume increased by 14.1%, and Sweden’s Volvo Cars increased by 25%.German BMW Wednesday said sales were up 1.1% In the first quarter, electric vehicle sales surged 27.9%.
—Jenny Reed
Tesco reports rising profits, says inflationary pressures have ‘reduced significantly’
Matt Cady | Getty Images
shares Tesco At 9:10 a.m. in London, the supermarket giant reported a 12.8% rise in profits to 2.83 billion pounds ($3.59 billion), sending the company’s shares up 0.5%. full year results Wednesday.
Sales rose 7.4% to £61.48 billion. The company also announced an increase in its dividend per share from 10.90 pence to 12.10 pence.
The company expects adjusted operating profits from its retail division to be at least 2.8 billion pounds in the next fiscal year, up from 2.76 billion pounds.
Chief executive Ken Murphy said the business had “strong momentum” and was seeing signs of improving customer sentiment.
“Inflationary pressures have eased significantly,” Murphy said in a statement.
Tesco share price.
European stocks open higher
European stocks opened higher on Wednesday Stoke 600 At 8:20 a.m. London time, the index was up 0.6%, with all sectors in the green.
Germany’s DAX index and Britain’s FTSE 100 index both rose about 0.6%, while France’s CAC 40 index rose 0.5%.
Stoxx 600 Index.
Norway’s inflation falls more than expected
The Royal Palace along Karl Johan Gate, next to shops and restaurants, on Tuesday, October 17, 2023, in Oslo, Norway.
Bloomberg | Bloomberg | Getty Images
Norway’s inflation slows more than expected in March data Published by the National Bureau of Statistics.
The overall interest rate fell to 3.9% from 4.5%, below the 4.2% forecast in a Reuters poll of economists.
Core inflation, adjusted for energy and taxes, was also weaker than expected, falling to 4.5% from 4.9%.
Norges Bank kept interest rates steady in March and said it expected to keep them there until the autumn.
Bartosz Sawicki, market analyst at Conotoxia, said: “Price pressures in Norway have fallen faster than expected…Norges Bank has scheduled the start of the easing cycle in the fourth quarter. Another surprise downside fueled speculation that the monetary authorities will abandon their hawkish stance sooner . ”, said in the comments.
He added that he did not expect rates to fall from their 16-year highs before December, given strong wage growth, a strong economy and the “lack of material recovery” in the Norwegian krone.
—Jenny Reed
Fitch lowers China’s rating outlook to “negative” and maintains A+ rating
Rating agency Fitch Outlook modified China’s rating was downgraded to “negative” from “stable”, citing “increasing risks to China’s public finance outlook.”
The agency said in the report that the country faces a more uncertain economic outlook and a transition away from reliance on real estate for growth.
In addition, the report noted that widespread fiscal deficits and rising government debt have eroded fiscal buffers in recent years, and debt is still likely to increase as fiscal policy plays an increasingly important role in supporting growth in the coming years.
However, Fitch affirmed its A+ rating on China, citing supporting factors such as its large and diversified economy, solid GDP growth prospects relative to other countries, and its integral role in global trade in goods.
— Lim Hui Jie
CNBC Pro: Here are 3 dividend stocks that can provide passive income, fund managers say
In a market where finding reliable passive income streams can be challenging, two fund managers share their insights into dividend stocks that can offer attractive yields and growth potential.
Matt Burdett, portfolio manager at Thornburg Investment, looks for companies capable and willing to pay dividends, focusing on cash generation and resilient business models.
Meanwhile, Keeley Teton portfolio manager Brian Leonard told CNBC Pro that he looks for quality companies that pay dividends and trade below their “intrinsic value.” He also views the spin-off situation as an investment opportunity.
CNBC Pro subscribers can read more about their stock picks here.
— Ganesh Rao
CNBC Pro: These global stocks are the most overbought and could be due for a pullback
After a bullish 2023, markets were likely to continue rising for much of the year, but stocks pulled back last week.
But overall, markets, including global equities, remain in positive territory.
Investors can use the Relative Strength Index (RSI), which measures the magnitude and speed of price movements, to determine whether a stock is overbought.
Stocks with a 14-day RSI above 70 are likely overbought and may be heading for a pullback.
CNBC Pro screened the most overbought stocks in the S&P 500 and Vanguard FTSE All-World ex-US ETF using a 14-day RSI above 70.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European Markets: Here are the opening calls
European markets opened lower on Tuesday.
British FTSE 100 German stocks are expected to open 6 points lower at 7,936 German DAX Index France fell 49 points to 18,263 CAC 17 points lower than Italy at 8,103 FTSE MIB It fell 77 points to 33,609, according to IG data.
The data released includes March inflation data for Ukraine.
— Holly Elliot
About The Author
