European markets close lower as momentum fades; UK inflation soars

OPEC’s new secretary general says oil producer group is not to blame for rising inflation

OPEC’s new secretary-general, Haitham Al Ghais, rejected suggestions that the influential energy alliance should bear the blame for rising prices, instead pointing a finger at chronic underinvestment in the oil industry. and gas.

“OPEC is not behind this price increase,” Al Ghais told CNBC’s Hadley Gamble.

“There are other factors beyond OPEC that are really behind the spike that we’ve seen in gas. [and] in oil. And again, I think in a nutshell, to me, it’s underinvestment, chronic underinvestment,” she added.

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—Sam Meredith

Treasury yields rise as markets await Fed meeting minutes

US Treasury yields rose on Wednesday on weaker demand for fixed income assets as investors await the release of the Federal Reserve’s July meeting minutes.

Performance in the benchmark 10-year Treasury note rose a little more than 4 basis points to 2.865%, while the yield of the 30-year Treasury bond it rose 2 basis points to 3.135%. The short-term 2-year Treasury note yield rose about 4 basis points to 3.297%. Yields move inversely to prices, and one basis point equals 0.01%.

The rise in yields is a reversal from the drop seen earlier in the week amid a weak US East Coast manufacturing survey and reports of slowing growth in China.

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—Natasha Turak

Euro zone economic growth revised down

Euro zone economic growth for the second quarter was revised down on Wednesday from 0.7% to 0.6% quarter-on-quarter, and from 4% to 3.9% annually.

Eurostat also revealed that employment in the 19-member common currency bloc rose 0.3% on a quarterly basis, for a year-on-year increase of 2.4%.

The strategist explains what is driving the divergence between the European and US markets.

Charlie Morris, founder of ByteTree Asset Management, discusses the disconnect in markets as Europe fails to follow Wall Street’s stock market rally.

UK Gilt Yields Rise After Red Hot Inflation

Tecan Group shares up 10%, Uniper down 9% after earnings

Tecan Group shares rose 10% in the early afternoon to lead the Stoxx 600 after the Swiss laboratory instrument company beat first-half earnings expectations and raised its full-year sales outlook.

At the bottom of the blue-chip European index, the German utility company Uniper It fell more than 9% after posting a net loss of 12.3 billion euros ($12.5 billion) in the first half as reduced Russian gas supply pushed up costs. Uniper got a rescue of 15,000 million euros from the German government last month.

UK inflation hits new 40-year high of 10.1% as food and energy prices continue to rise

UK inflation climbed to another 40-year high in July, when soaring food and energy prices continued to intensify the country’s historic pressure on households.

The consumer price index rose 10.1% on a yearly basis, according to estimates released by the Office for National Statistics on Wednesday, above the Reuters consensus forecast of 9.8% and above the 9.4% forecast for June.

Core inflation, which excludes energy, food, alcohol and tobacco, stood at 6.2% in the year to July 2022, down from 5.8% in June and above projections of 5.9%.

Rising food prices made the biggest upward contribution to annual inflation rates between June and July, the ONS said in its report.

-Elliot Smith

CNBC Pro: Have the markets bottomed out? Strategist reveals the indicators to watch

A sharp rally in US stocks has raised hopes that the market has bottomed. But is the bear market really behind us now?

Strategist Victoria Fernandez weighed in and revealed the key indicators she is watching.

Professional subscribers can read the story here.

—Zavier Ong

CNBC Pro: Is ‘super cheap’ meta a buy? Here’s what tech investor Paul Meeks says

Goallike most tech stocks, it has fallen sharply this year, and now investors might be wondering if it’s time to buy the dip.

Paul Meeks, portfolio manager at Independent Solutions Wealth Management, explains whether he thinks investors should buy or skip this stock and why.

Professional subscribers can read the story here.

— Weizhen Tan

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