Markets

European markets are headed for a lower open, shrugging off positive PMI data

Defense manufacturer Rheinmetall is raising expectations of an increase in wartime demand

Germany Rheinmetall raised its sales expectations for 2025, CEO Armin Papperger said.

The CEO told Stern magazine that he expects sales to rise to between 11 billion euros ($11.9 billion) and 12 billion euros in 2025, up from between 10 billion euros and 11 billion euros in November.

Rheinmetall has supplied Ukraine with air defense systems and military trucks for use in its fight against Russia, and is also involved in the production of the Leopard tanks currently being sought by Ukraine.

Shares of Rheinmetall hit a record high in March 2022 and have remained high since Russia invaded Ukraine. Shares hit a high of $226.50 at around 9:30 a.m. London time on Tuesday.

— Hannah Ward-Glenton

CNBC Pro: Analysts love this indie game developer – and one bank says it could rise over 200%

Shares of the indie video game developer should rise more than 200%, according to Berenberg, who said the company provided a “very encouraging” outlook for 2023.

The investment bank isn’t the only one that likes the developer — although most bulls are. The consensus price target of six analysts covering the stock points to a potential upside of more than 70%, according to FactSet data. All but one have a buy rating on the company’s stock.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Flash PMI: UK suffers sharp January contraction in activity

In contrast to an apparent revival in eurozone business activity in January, flash PMI (purchasing managers’ index) readings from the UK on Tuesday showed the economy contracted at its fastest rate in two years.

The UK S&P Global composite PMI, which includes services and manufacturing, fell to 47.8 in January from 49.0 in December, below the consensus forecast of 48.5 in a Wall Street Journal poll of economists.

S&P Global said widespread strikes, staff shortages, export losses, a cost-of-living crisis and sharp interest rate hikes combined to dampen economic activity.

– Elliot Smith

Flash PMI: Eurozone business activity returns to growth in January

The eurozone economy returned to modest growth in December, according to new PMI (purchasing managers’ index) readings on Tuesday.

The S&P Global eurozone composite PMI, which includes manufacturing and service activities, reached 50.2 in January, up from 49.3 in December and ahead of the consensus forecast of 49.8.

The index crossed the 50 mark, which separates expansion from contraction, for the first time since June.

The eurozone’s dominant services sector index rose to 50.7 from 49.8 in December, while the manufacturing index improved to 48.8 from 47.8, also beating forecasts but remaining in shrinking territory.

– Elliot Smith

European markets: Here are the initial calls

European markets are headed for a negative opening on Wednesday.

of the UK FTSE 100 The index is expected to open 2 points lower at 7,765, German DAX 28 points less at 15,070, France CAC fell by 8 points to 7,040 and Italy FTSE MIB 65 points lower at 25,888, according to IG data.

There are no major earnings announcements today, but market participants will be watching the latest Ifo business climate survey from Germany.

— Holly Elliott

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