European stocks open to close, US inflation data

German inflation confirmed at 10% in September

Germany’s consumer price index rose 10% year-on-year in September and 1.9% month-on-month, the country’s Federal Statistics Office said on Thursday, confirming a preliminary reading.

EU-harmonised CPI inflation was 10.9% annually and 2.2% monthly, also in line with forecasts.

– Elliot Smith

Shares on the way: Sweco down 7%, Taylor Wimpey down 5%

Swedish engineering consultancy Sweco fell more than 7% in early deals to the bottom of the Stoxx 600, while Taylor Wimpey fell more than 5% to lead a broad selloff for UK housebuilders.

European markets: Here are the opening calls

European markets are headed for a lower open on Thursday as investors around the world brace for the latest US inflation data.

Britain’s FTSE index is expected to open 12 points lower at 6,812, Germany’s DAX down 41 points at 12,150, France’s CAC 23 points lower at 5,803 and Italy’s FTSE MIB 40 points lower at 20,324, according to data from IG.

The lower opening in Europe comes amid mixed global sentiment ahead of the latest US inflation reading. US stock futures rose slightly overnight, while markets in the Asia-Pacific region were mixed as investors await the data.

The Dow Jones consensus estimate shows that the CPI rose 0.3% in September, up from 0.1% in August. That will bring the annual pace of inflation to 8.1% from 8.3%.

An increase in the consumer price index will also follow producer price data which came in higher than expected, data showed on Wednesday. The U.S. producer price index, a gauge of final demand wholesale prices, was up 0.4% in September, more than the consensus estimate of a 0.2% increase, according to Dow Jones.

Markets digested minutes released Wednesday from the Federal Reserve’s September meeting, which showed the central bank expected to keep raising interest rates until it sees inflation easing.

One comment led some to believe the Fed would instead slow rate hikes, if not roll them back, if financial markets continued.

On the data front in Europe, Germany publishes final inflation data for September.

—Holly Ellyatt

CNBC Pro: Goldman Sachs favors Tesla and another major automaker even during an economic downturn

Goldman Sachs raised its forecasts for electric car sales, saying Tesla and another major automaker will benefit from the Inflation Reduction Act.

It comes at a time when the auto sector faces several headwinds in 2023, from rising interest rates to a drop in consumer demand.

CNBC Pro subscribers can read more here.

– Ganesh Rao

The Fed minutes show that the central bank sees more interest rate increases, higher interest rates for a longer period of time

The Federal Reserve’s September meeting minutes, released on Wednesday, show that the central bank expects to continue raising interest rates and keep them higher until inflation shows signs of easing.

The minutes reflect the politicians’ discussions ahead of the latest increase of 0.75 percentage points, the third consecutive increase of that size delivered this year.

The central bank has been surprised by the sustained pace of inflation, but remains optimistic that interest rate increases will help bring price increases back in check.

—Carmen Reinicke, Jeff Cox

CNBC Pro: Is Meta a stock to buy or avoid? A bull and a bear face each other

These are turbulent times for Metawith investors fleeing this year as they struggle with headwinds.

The share plunged at the end of September to the lowest since January 2019 – and has since fallen even more.

Are big investors considering the Facebook parent a buy now that shares are so cheap, or is it one to avoid?

CNBC’s “Street Signs Asia” spoke with Paul Meeks of Independent Solutions Wealth Management, and Jake Dollarhide of Longbow Asset Management, as they make their case for Meta.

Pro subscribers can read more here.

— Weizhen Tan

Shares close lower after choppy sessions

All three major averages closed lower on Wednesday after swinging between gains and losses throughout the day.

The S&P 500 fell 0.33% to 3,577.03, its lowest close since November 2020 and its sixth straight daily loss.

The Dow Jones Industrial Average fell 28.34 points, or 0.10%, to close at 29,210.85. The Nasdaq Composite fell 0.09% to close at 10,417.10.

—Carmen Reinicke

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