Stocks, News, Data, Earnings

The pan-European Stoxx 600 index hit a record close on Thursday, rising 0.9% through the trading session and surpassing its highest since January 2022.

Not all sectors rose, with food and beverage stocks down 1.3%, while auto stocks rose 2.7%.

Germany’s DAX index rose 1.47%, while France’s CAC40 index rose 1.27%, following better-than-expected Eurozone Purchasing Managers Index data and strong financial results.

Britain’s FTSE 100 index rose only 0.3%.

The number of new individuals filing for unemployment benefits in the U.S. fell more than expected last week, suggesting strength in the labor market.

New jobless claims totaled 201,000 for the week ending February 17, down 12,000 from the previous week’s revised figure, according to the latest figures from the U.S. Department of Labor. According to Reuters, the number of insured unemployed people for the week ending February 10 was 1,862,000, and claims remained at historic lows.

— Peer Singh

Manufacturing in the euro zone contracted in February, but the services sector returned to growth, preliminary data showed on Thursday.

The Manufacturing Purchasing Managers Index fell to 46.1 from 46.6 in January, while the Services PMI rose to 50.0 from 48.4 the previous month.

— Karen Gilchrist

Mercedes-Benz shares rose on Thursday after the German automaker beat fourth-quarter profit expectations and announced a new share buyback program despite warning of “exceptional” risks next year It rose 4% in the morning.

Earnings before interest and tax (EBIT) for the fourth quarter were slightly above the consensus estimate of 4.33 billion euros ($4.7 billion), taking the full-year figure to 19.66 billion euros. Sales in 2023 increased by 2% to 153.2 billion euros from 150 billion euros in the previous year.

The group has also announced an additional share buyback program worth up to €3 billion, with the shares bought back to be subsequently cancelled.

However, Mercedes-Benz warned that bottlenecks in the supply chain for critical parts remained a “significant risk factor”, particularly with regard to geopolitical events such as the Russia-Ukraine conflict and the Middle East conflict, as well as trade policy. “There is exceptional uncertainty,” he said. and tensions between the West and China.

– Elliott Smith

Rolls-Royce shares rose more than 8% in early trade in London after the British aerospace group more than doubled its annual profit in 2023 and expected further momentum this year.

Rolls-Royce, which makes jet engines for commercial aircraft and power systems for ships and submarines, reported underlying operating profits of £1.6 billion ($2 billion) in 2023, compared to £652 million in 2022. That’s more than double the million pounds.

“Our transformation has led to record performance in 2023, driven by commercial optimization, cost efficiencies and progress on strategic initiatives,” CEO Tufan Erzinbilgić said in a statement. ” he said.

“This significant change was achieved across all of our divisions despite a volatile environment including geopolitical uncertainty, supply chain challenges and inflationary pressures.”

The group expects underlying operating profit growth to be at least 6% in 2024, with full-year figures expected to be in the range of £1.7bn to £2.0bn.

Rolls-Royce was the top performer on Britain’s FTSE 100 index in 2023, surging more than 200% on the back of higher profit forecasts and an announcement in November that profits could quadruple by 2027.

– Elliott Smith

Shares in Swiss food giant Nestlé fell 4.8% in early trading after the company said full-year sales were lower than expected as inflation continued to weigh on consumer demand.

CEO Mark Schneider told CNBC he expects food inflation to decline, but some “volatility” remains as some commodity prices are at record highs. He said it would be.

— Karen Gilchrist

Shares in Delivery Hero fell 6.2% in early trading following news that the company has concluded negotiations over the potential sale of its Foodpanda business in certain Southeast Asian markets.

Meanwhile, UK pharmaceuticals business Indivior posted a pre-tax profit in the fourth quarter amid increased sales, rising 16.7%.The company announced that it is considering moving its main listing to the United States.

— Karen Gilchrist

JPMorgan has discovered some top European stocks with big upside potential, as well as stocks that are currently “unattractive.”

The investment bank said U.S. stocks are “outperforming” international stocks, growth stocks are “outperforming” value stocks and large-cap stocks are “again outperforming” small-cap stocks.

CNBC Pro subscribers can read more about the bank’s preferred stocks and preferred stocks here.

— Amara Balakrishna

Last year, as U.S. Treasury yields soared, investors flocked to allocations to cash that yields about 5% or more.

Yields have since fallen, and Wall Street widely expects them to fall further, prompting investors to shed cash and invest in other income-producing assets. But recent stronger-than-expected economic data on consumer and producer prices has raised the possibility that the Federal Reserve will cut interest rates later rather than sooner.

CNBC Pro subscribers can read more about where these yields could be heading, according to Jim Caron of Morgan Stanley Investment Management. He also outlined three scenarios for the 10-year Treasury yield and explained how each could affect stock prices.

— Tan Weizhen

European markets are set to open higher on Thursday.

According to IG data, the UK’s FTSE 100 index rose 23 points to 7,665, Germany’s DAX rose 96 points to 17,205, France’s CAC rose 55 points to 7,863 and Italy’s FTSE MIB rose 222 points to 7,863. It is expected to start at 32,289.

Proceeds are expected to come from Nestlé, Zurich Insurance, Iberdrola, Telefonica, Lloyds Banking Group, Rolls-Royce, WPP, Anglo American and Hargreaves Lansdown. Preliminary Eurozone Services and Manufacturing Purchasing Managers Index data for February will be released on Thursday.

— Holly Ellyatt