October 1, 2023

An Hour Ago

‘Stuck in the twilight zone’: German economy stagnates in the second quarter

A view of EU and German flags over the Reichstag building, the seat of the German Parliament.

NurPhoto | NurPhoto | Getty Images

Germany’s economy failed to show any growth in the second quarter, according to official data. Analysts had expected the country to eke out a 0.1% increase in GDP.

Annually, Europe’s biggest economy contracted by an adjusted 0.2% on the year.

“The flash estimate of German GDP growth shows that the eurozone’s largest economy stagnated in the second quarter and seems to be stuck in the twilight zone between stagnation and recession,” ING’s Global Head of Macro Carsten Brzeski said in a note following the release.

He advised caution over the figures, given the number of recent revisions to flash estimates.

“Looking ahead, recently released sentiment indicators do not bode well for economic activity in the coming months,” Brzeski added.

“In fact, weak purchasing power, thinned-out industrial order books, as well as the impact of the most aggressive monetary policy tightening in decades, and the expected slowdown of the US economy, all argue in favour of weak economic activity.”

Spain’s economy meanwhile grew by 0.4% in the second quarter over the previous three months, preliminary data showed, expanding in line with expectations. On an annual basis, GDP came in at 1.8% for the country, falling short of predictions near 2%.

— Katrina Bishop

3 Hours Ago

French economy beats expectations in second quarter

French gross domestic product grew by 0.5% in the second quarter, national statistics showed, well above a forecast of 0.1% in a Reuters poll of economists.

GDP growth was 0.1% in the first quarter.

Official figures also published Friday put French consumer price inflation at 4.3% in July, a slight decline on 4.5% in June. Inflation was 5% on an EU-harmonized basis.

The figures will be seen as an encouraging sign for the euro zone, given economic stagnation in Germany and concerns over the impact of higher rates.

— Jenni Reid

3 Hours Ago

Europe stocks head for lower open

European stocks were seen opening in negative territory Friday, according to IG data.

The U.K.’s FTSE 100 was seen down 17 points at 7,694, with France’s CAC 40 lower by 25 points at 7,447 and Germany’s DAX down by 40 points at 16,366.

— Jenni Reid

6 Hours Ago

Yields for 10-year Japanese government bonds at highest levels in almost 9 years

Yields for 10-year Japanese government bonds stood at 0.539% after the Bank of Japan announced an adjustment in its stance for its yield curve control policy.

This is the first time 10-year JGB yields have hit this level since September 2014.

The BOJ said it will still allow yields to fluctuate in the range of around plus and minus 0.5%, but it will “conduct yield curve control with greater flexibility, regarding the upper and lower bounds the range as references, not as rigid limits, in its market operations.”

Separately, Japan’s central bank held its benchmark policy rate at -0.1%.

— Lim Hui Jie

5 Hours Ago

Japan bank stocks rally even as Nikkei leads losses in Asia

9 Hours Ago

Goldman names China stocks set for a bounce — and 2 make its list of top buy-rated picks

Goldman Sachs has named a number of Chinese stocks to buy after authorities announced a number of major fiscal stimulus measures this week.

While structural growth concerns remain, the meeting “reaffirms our view that the policy put has been activated, and the window for a tactical bounce for Chinese stocks is now open,” Goldman analysts said in a July 26 research note.

CNBC Pro subscribers can read more here.

Lucy Handley

10 Hours Ago

CNBC Pro: These funds have the highest annualized returns in the last 5 years — and they are not tech

Much of the market gains this year has been dominated by tech stocks.

Investors are wondering if the U.S. Federal Reserve is done raising rates after its 25 basis-point hike on Wednesday. Still, uncertainty looms ahead for the tech sector.

For those looking outside of tech, Morningstar data shows that non-tech or growth funds have also been among the top performing for the last five years.

Here’s the list, and their top holdings.

CNBC Pro subscribers can read more here.

— Weizhen Tan

10 Hours Ago

CNBC Pro: Morgan Stanley names 3 ‘top’ stocks to buy and 3 to short in the office space sector

Morgan Stanley has named three stocks to buy and three to sell as it revealed its cautious stance on the global office spaces sector.

The Wall Street bank has forecast an oversupply of office space that could last more than a decade while facing headwinds from the rise in working from home, increasing capitalization rates, and expensive refinancing challenges.

CNBC Pro subscribers can read more here.

— Ganesh Rao

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