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The World Economic Forum begins in Davos

Stocks on the move: Temenos up 5%, Tecan down 4%

Temenos shares rose more than 5% in early trade to lead the Stokk 600 after the Swiss software company announced that CEO Max Chuard would step down.

At the bottom of the European blue-chip index, a countryman, a manufacturer of laboratory equipment Tecan Group fell 4% after Kepler Cheuvreuk downgraded the stock from “buy” to “hold” and cut its price target.

– Elliot Smith

CNBC Pro: Want an alternative to Tesla? Analysts and fund managers reveal their top EV stocks

CNBC Pro: Analysts love these 12 cheap stocks — and give one a 70% upside

2022 was a bad year for many investors, with most stocks – especially tech stocks – falling to levels not seen since 2008.

But there could be some opportunity in that chaos, with a number of companies trading at steeper price-to-earnings discounts than they have in recent history.

CNBC Pro tested these names, which are also favorites on Wall Street.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Inflation outlook softens again, traders fully price in rate hike by quarter point

Declining consumer inflation expectations coincide with expectations that the Federal Reserve is likely to scale back interest rate hikes in a few weeks and soon end them altogether.

A University of Michigan consumer sentiment survey showed on Friday that one-year inflation eased to 4%, the third straight monthly decline and the lowest level since April 2021.

At the same time, traders assigned a 94.2% chance of a 0.25 percentage point rate hike on February 1, when the Fed’s next two-day meeting ends. That’s another smaller move than the 0.5 percentage point increase in December, which itself was a slowdown from four consecutive 0.75 percentage point increases.

“Inflation expectations are well-founded and improving as price pressures ease across many sectors.” The Fed is likely to hike by 0.25% at its upcoming meeting later this month,” LPL Financial Chief Economist Jeffrey Roach said. “We shouldn’t be surprised if the Fed starts talking about pausing in the near future.”

— Jeff Cox

European markets: Here are the initial calls

European markets are headed for a higher open on Monday as investors gauge the outlook for global inflation following positive signs from US data last week.

of the UK FTSE 100 The index is expected to open 10 points higher at 7,856, German DAX 84 points higher at 15,174, France CAC increased by 43 points to 7,063 and Italy FTSE MIB by 142 points to 25,895, according to IG data.

Data releases include Germany’s ZEV survey of economic sentiment for January and preliminary Italian inflation data for January. The World Economic Forum begins on Monday in Davos, Switzerland.

— Holly Elliott

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