Swedish central bank launches 100bp rate hike, says ‘inflation is too high’
Sweden’s Riksbank launched a 100 basis point interest rate hike on Tuesday, taking its main benchmark rate to 1.75%, as it warned that “inflation is too high”.
In a statement, the central bank said soaring inflation was “undermining household purchasing power and making it harder for businesses and households to plan their finances.”
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German producer prices soar 45.8% YoY in August
Producer price inflation in Germany hit 45.8% year-on-year in August, the Federal Statistical Office said on Tuesday, driven by soaring energy prices.
The reading comfortably exceeded a Dow Jones consensus forecast of 37.9%, while on a monthly basis the producer price index rose 7.9% against a forecast of 1.6%.
The ex-energy PPI reading, however, was 0.4% on the month and 13% on the year.
Stocks in motion: Bachem Holding up 13%, Future down 12%
There were some big moves in stock prices early in European trading. Swiss biotech company Bachem Holding jumped 13% to top the Stoxx 600 after signing two new peptide deals.
British media company Future PLC plunged more than 12% after Sky News announced on Monday that CEO Zillah Byng-Thorne intended to step down in 2023.
CNBC Pro: Fund manager says bear market will get ‘nasty’
Fund manager Cole Smead believes the stock market is still in the early stages of a bear market – and warns it won’t be a ‘garden variety’.
But he doesn’t lose sleep over it. Here’s why:
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— Zavier Ong
Stocks end Monday’s volatile session higher
Stocks tumbled on Monday but ended the session in positive territory as a big week for the Federal Reserve got under way.
The Dow Jones Industrial Average closed up 197.26 points, or 0.64%, to 31,019.68. The S&P 500 jumped 0.69% to 3,899.89 and the Nasdaq Composite gained 0.76% to 11,535.02.
— Samantha Subin
CNBC Pro: Goldman Says Copper Demand Is About To Rise. Here are the actions he expects to benefit from
A copper shortfall could be on the horizon, with demand set to rise with the push to net zero – and some metals stocks could shine in this scenario, according to Goldman Sachs.
CNBC Pro subscribers can learn more here.
European markets: here are the opening calls
European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.
Britain’s FTSE index is expected to open down 47 points to 7,341, Germany’s DAX down 86 points to 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB down 132 points to 22,010 , according to data from IG.
Global markets fell following a stronger-than-expected U.S. consumer price index report for August, which showed prices rose 0.1% for the month and by 8.3% a year in August, the Bureau of Labor Statistics reported on Tuesday, defying economists’ expectations that headline inflation would fall 0.1% month-over-month.
Core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.
UK Inflation figures for August are due and Eurozone Industrial Production for July will be released.