European Markets Open Lower Ahead of Fed Meeting
CNBC Pro: Morgan Stanley says higher oil prices could boost 2 global commercial real estate stocks
The recent increase in oil prices could provide a boost to London’s prime office real estate market, according to Morgan Stanley.
The Wall Street bank explained the newly discovered correlation between the sectors and named the two stocks expected to benefit from the trend.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Oil prices continues to push 10 month highs
Oil futures hit their highest levels in a year as expectations of a supply deficit continued to send prices to nearly $95 a barrel on Tuesday.
U.S. West Texas Intermediate crude gained more than 1% and hit $92.43, its highest level since Nov. 4, while Brent crude futures reached $94.77, its highest level since Nov. 16 when it traded as high as $94.79.
Prices have risen for three consecutive weeks, and Reuters reports that prices are on track for their biggest quarterly increases since Russia’s invasion of Ukraine in the first quarter of 2022.
Earlier this month, Saudi Arabia and Russia extended a combined supply cut of 1.3 million barrels per day to the end of the year.
ICE Brent Crude (Nov′23)
*Data is delayed | Exchange | USD
CNBC Pro: Rates are rising in Europe. HSBC names the region’s ‘most and least vulnerable stocks’
The European market has been weighed down by a spike in corporate lending rates.
“Our economists expect the bulk of the interest rate headwinds to emerge over the next eighteen months or so,” HSBC analysts said in a Sept. 15 note.
CNBC Pro takes a look at the bank’s two screens of “the most and least vulnerable” stocks: one for “cash-rich” companies and the other for “high leverage” names.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
The Federal Reserve is done hiking this year, even if the dot plot that’s set to release this week shows one more increase, according to Goldman Sachs.
“On November, we think that further labor market rebalancing, better news on inflation, and the likely upcoming Q4 growth pothole will convince more participants that the FOMC can forgo a final hike this year, as we think it ultimately will,” the firm’s chief economist Jan Hatzius wrote on Saturday.
“But we expect the dot plot to show a narrow 10-9 majority still penciling in one more hike, if only to preserve flexibility for now,” he added.
The dot plot shows where individual members expect to see rates trending over the next several years. The Fed concludes its two-day policy meeting Wednesday.
— Sarah Min
CNBC Pro: Analysts name 2 stocks to play the $104 billion EV charging industry — giving one 95% upside
Public electric vehicle charging infrastructure remains “critical” in driving further EV adoption, said analysts at investment bank TD Cowen.
The bank concluded that the world will require a “massive and rapid” buildout of charging infrastructure and installation that it estimates would require a total U.S. investment of $104 billion through 2030.
Here are some areas that will take up the bulk of that opportunity, as well as stocks that could benefit, according to TD Cowen.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets are expected to open in mixed territory Tuesday.
The U.K.’s FTSE 100 index is expected to open 14 points higher at 7,662, Germany’s DAX up 7 points at 15,274, France’s CAC 4 points lower at 7,266 and Italy’s FTSE MIB down 10 points at 28,598, according to data from IG.
Earnings are set to come from Kingfisher and Ocado Retail. Data releases include euro zone final inflation figures for August.
— Holly Ellyatt