European markets fell slightly as investors gauged the economic outlook

German October wholesale sales inflation fell well short of expectations

Germany’s producer price index came in at -4.2% month over month in October, the Federal Statistics Office reported Monday, well below Reuters’ forecast for a 0.9% increase.

On a yearly basis, wholesale prices rose 34.5%, below expectations of 41.5%.

– Elliott Smith

Stocks on the go: Virgin Money up 13%, IDS down 5%

Virgin Money Shares jumped more than 13% to top the Stoxx 600 in early trade after the company reported an increase in pre-tax profit for the 2022 financial year and announced a £50m ($59.4m) share buyback programme.

At the bottom of the cursor, an arrow International distribution services Trading as Royal Mail – down 5% as the company faces further waves of industrial strikes from workers over the holiday season.

Oil prices fall as China faces Covid fears, and Goldman Sachs cuts forecasts

Oil prices fell nearly $1 as Covid fears grew in China with the first virus-related death recorded since May this year.

Brent Crude Futures losing less than a dollar, or 0.9%, to stand at $86.83 a barrel and West Texas Intermediate USA Futures fell 1.09% to $79.21 a barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 a barrel for the fourth quarter of 2022, citing waning Chinese demand as Covid concerns mount and insufficient detail from Russia’s recent G7 oil price cap.

“We believe the market has a right to worry about future fundamentals,” economists including Jeffrey Currie said in the note, adding that the prospect of further shutdowns in China equaled the latest production cut by OPEC+.

– Lee Ying Chan

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, are ‘undervalued’

This year, a 30% decline in the value of shares of major Chinese technology companies, such as Ali Babamade it “incredibly cheap,” according to investment bank China Renaissance.

Head of Equity Andrew Maynard not only thinks the stock market looks like it has bottomed out, but also thinks investors could miss out on a rally if they remain less heavy on China.

“Without a shadow of a doubt, underweight China is going to cost you going,” Maynard said.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Markets are watching for more clues of Fed increases and the economy next week

Investors may be a little more cautious next week, as stocks seek direction in quiet trading and bond market warnings of a recession get noisier.

The Thanksgiving holiday on Thursday should mean that the markets will likely be quiet on Wednesday and Friday. Merchants will be watching reports on Black Friday holiday shopping for consumer feedback.

“It really is a week where data-driven is the keynote,” said Julien Emmanuel, Senior Managing Director at Evercore ISI. bias [for stocks] It will be higher unless data continues to deteriorate and the Fed maintains its bullish bias…which has clearly strengthened in the last 48 hours. “

Check out our full deep dive on what to expect next week here.

– Patti Domme, Tanaya Machel

CNBC Pro: Morgan Stanley’s Mike Wilson Predicts S&P 500 Bottom, Calls It ‘A Great Buying Opportunity’

We’re in the “last stages” of a bear market, says Mike Wilson, senior US equity analyst at Morgan Stanley, but it’s going to be tough for a while longer.

He predicts when — and at what level — the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

– Wizen tan

European Markets: Here are the opening calls

European markets are set to open lower on Monday as investors continue to monitor the uncertain economic outlook.

The UK’s FTSE is expected to open 15 points lower at 7,386, Germany’s DAX is down 54 points at 14,378, France’s CAC is down 17 points at 6,629, and Italy’s FTSE MIB is down 54 points at 24,445, according to data from IG.

There are no big profits on Monday. Data releases include German Producer Prices for October.

– Holly Ellytt

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