Stocks, news, data and ECB decisions

Europe’s Stoxx600 index rose 1.05% on Thursday, closing above the psychological level of 500 for the first time in history, as the European Central Bank’s latest monetary policy meeting raised hopes of a June interest rate cut.

Technology stocks rose 2.26% and healthcare stocks rose 2.3%.

Germany’s DAX and France’s CAC40 both rose about 0.7%, while Britain’s FTSE 100 closed up 0.17%.

Shares in Danish drugmaker Novo Nordisk soar as the company says it will expand its focus to cardiovascular disease treatments after a late-stage trial showed that its weight loss drug Ozempic slowed the progression of chronic kidney disease in people with diabetes. The stock rose 4.5% in morning trading.

New data released on Thursday also showed that the company’s experimental drug, amicretin, boosted weight loss by 13%, Reuters reported.

Eli Lilly’s stock fell 2% in pre-market trading as competition intensified between the two major companies in the obesity drug market.

— Karen Gilchrist

Shares in Hugo Boss fell 18% on Thursday, offsetting some losses, after the company warned it may miss its 2025 sales target due to weak consumer demand.

The German luxury fashion brand said sales would reach 4.2 billion euros ($4.6 billion) in 2023, but growth would slow next year, with the company forecasting its worst trading day since 2016. became. Previous year.

As of 8:52 a.m. London time, the stock was trading 18% lower.

— Karen Gilchrist

Shares in financial services company Virgin Money soared 36% in early trading following news that it would be acquired by British bank Nationwide for 2.9 billion pounds ($3.7 billion).

Meanwhile, French office services and call center company Teleperformance fell 17.7%, noting that it would miss its full-year sales target for 2023 and see limited growth in the year ahead.

CEO Daniel Julien dismissed reports that artificial intelligence innovations pose risks to the business. “AI helps collect data… [but it] “I don’t make decisions,” he told CNBC.

— Karen Gilchrist

Investment firm Raymond James said on Thursday that external shocks such as geopolitical events and still-restrictive monetary policy could undermine growing confidence in the IPO market.

“Exogenous shocks remain a real threat,” Sunaina Sinha Haldea, global head of private capital advisory, told CNBC. She added that even as funds begin to return to the market, technical flows, or sudden outflows of investment from one market to another, also risk causing disruption.

— Karen Gilchrist

British house prices rose for a fifth straight month in February, new data showed on Thursday, showing signs that momentum is returning to the lackluster property market.

Average UK house prices rose 0.4% in February, up 1.7% year-on-year, according to the Halifax House Price Index.

Halifax Mortgages director Kim Kinnaird said the data suggests a cautious confidence is returning to the market in anticipation of rate cuts later this year.

“These numbers continue to suggest a relatively stable start to 2024 and are consistent with other encouraging signs of increased housing activity, such as mortgage approvals.”

— Karen Gilchrist

India’s economic outlook is bright, attracting global investors eager to tap into the country’s immense growth potential.

The International Monetary Fund expects India’s real gross domestic product (GDP) to expand by 6.5% in 2024.

However, leveraging these opportunities as a foreign investor is not as easy as buying stocks listed on Indian stock exchanges. Barriers include foreign ownership restrictions, complex tax implications, and corporate governance concerns.

CNBC Pro subscribers can read more about how foreign investors can buy Indian stocks.

— Ganesh Rao

With the prices of many growth stocks soaring, some investors are turning to value stocks.

“Assuming the S&P 500 index is 5,075 and the expected earnings growth rate is 10% in 2024, that’s $243 per share, or 21x earnings. That’s expensive, but plain and simple.” Brian Zeitel, the group’s senior managing director, said recently. February. The S&P 500 index ended Tuesday at around 5,078.

He said he would not own the index at that level. “However, I believe that the rotation from growth to value that started in 2022 will resume as we move some of the market into more value-oriented stocks. Now we have ‘carry,’ earn income and dividends.” “It’s time,” he said. .

If you’re interested in value stocks, consider the following from CNBC Pro’s Vanguard Value ETF screen. Each has over 20% upside potential, a buy rating of at least 50%, and the screen displays the current and five-year average dividend yield.

CNBC Pro subscribers can read more here.

— Tan Weizhen

European markets are expected to open flat to lower on Thursday.

According to IG data, the UK’s FTSE 100 index is expected to open 3 points higher at 7,652, Germany’s DAX is expected to drop 13 points to 17,698, France’s CAC is down 12 points to 7,943 and Italy’s FTSE MIB is expected to decline 75 points to 33,312.

The European Central Bank will announce its latest monetary policy on Thursday. On the earnings front, Continental, Lufthansa, ITV, Admiral Group and Kia are scheduled to announce their results.

— Holly Ellyatt