European banks halt trading as shares plummet
Shares of several European banks including Credit Suisse, Societe Generale and Italy’s Monte dei Paschi and UniCredit have been halted from trading as prices plummeted.
Credit Suisse was down as much as 21% around 10.33 a.m. London time, followed by Societe Generale, which dropped 9.9%.
— Hannah Ward-Glenton
Credit Suisse shares down 10% to fresh record low
Shares of embattled bank Credit Suisse hit one other all-time low for a second consecutive day, dropping by as much as 10% around 9.47 a.m. London time on Wednesday.
Investors are assessing the impact the bank’s Tuesday announcement that it had found “material weaknesses” in its financial reporting processes for 2022 and 2021.
— Hannah Ward-Glenton and Elliot Smith
Platinum price surge forecast for 2023
Aspects including power cuts in South Africa, the war in Ukraine and the increased production of hybrid cars could cause platinum prices to extend in 2023.
Investment bank UBS readjusted its price forecast for platinum in 2023, estimating that the valuable metal will cost $1,150 per ounce for June, up from a previous estimate of $1,100, and can reach $1,200 per ounce in December.
Chart to indicate the worth of platinum.
“The important thing point is that we’re expecting a fairly significant 24% year-on-year growth by way of total demand,” Ed Sterck, Director of Research on the World Platinum Investment Council told CNBC, but supply is barely set to extend by 13% in comparison with last 12 months.
The complete story is out there here.
— Hannah Ward-Glenton
Stocks on the move: Bollore up 8%, IG Group down 6%
Shares of French logistics company Bollore were up 8% in early trade after the corporate decided to launch a money tender offer by itself shares.
It could aim to accumulate a maximum of just over 288.6 million shares, representing 9.78% of its share capital, based on an organization press release.
Chart to indicate Bollore share price.
IG Group fell to the underside of the Stoxx 600 index in early trade after third-quarter net trading revenue fell lower on market volatility and the corporate experienced a 5% drop in lively client numbers.
The web trading organization reported revenue for essentially the most recent quarter as 7% lower than the comparable quarter the previous 12 months.
Chart to indicate Bollore share price.
European equity markets open lower
European equity markets opened lower, with banking stocks still in negative territory following the worldwide Silicon Valley Bank fallout.
The pan-European Stoxx 600 index was down 0.4% toward the beginning of trade, with most sectors and major bourses trading within the red. Retail stocks led losses with a 1.9% drop, followed by oil and gas stocks, which were down 1.4%. Banking stocks were down 0.5%.
— Hannah Ward-Glenton
BMW lifts margin forecast, expecting higher deliveries because it ramps up electric rollout
German carmaker BMW on Wednesday said it expects an EBIT (earnings before interest and taxes) margin of between 8-10% for its automotive range in 2023, with deliveries set to rise barely from 2022. Selling prices are targeted to stay at a “stable” level.
The corporate reaffirmed the full-year 2022 results reported last week, including an EBIT of 10.6 billion euros ($11.4 billion) for its automotive segment, which had an 8.6% margin last 12 months.
BMW is carrying out an intensive rollout of battery-electric vehicles and anticipates it should reach greater than 50% BEV share well ahead of 2030. The corporate’s BEV share is slated to succeed in 15% in 2023.
— Ruxandra Iordache
CNBC Pro: UBS says buy these 4 stocks if U.S.-China geopolitical fears proceed to rise
UBS has named numerous Chinese stocks it says have remained “resilient” in periods of heightened geopolitical tensions between america and China.
In a note to clients on March 13, the Swiss bank said that more market volatility is predicted when a possible U.S. ban on investment in some Chinese sectors is announced.
CNBC Pro subscribers can read more concerning the UBS’ stock picks here.
— Ganesh Rao
China’s industrial output, retail sales rise in January to February period
China’s industrial output rose 2.4% within the January to February period, official data showed.
Retail sales rose 3.55% for a similar period, according to expectations.
China’s fixed asset investment in the primary two months of the 12 months saw an increase of 5.5%, higher than expectations from economists polled by Reuters that predicted to see growth of 4.4%.
China’s onshore yuan weakened after the info was released and traded at 6.8822 against the U.S. dollar.
The People’s Bank of China kept the speed on 481 billion yuan of one-year medium-term lending facility loans at 2.75%.
CNBC Pro: ‘Chaos creates opportunities’: Strategist says to look beyond the SVB fallout — and names his top picks
Frightened about contagion from the collapse of Silicon Valley Bank? Veteran strategist Kenny Polcari believes the impact from SVB’s failure shall be fairly limited.
While investors are mostly shunning the banking sector within the short term, Polcari sees “some very interesting opportunities” within the space, in addition to in other segments of the market.
Pro subscribers can read more here.
— Zavier Ong
CNBC Pro: As markets turn rocky, these global stocks look resilient and are expected to rally
Markets have had a rocky March to date, as inflation fears returned and the collapse of Silicon Valley Bank sent investors right into a risk-off mode.
Against this backdrop, CNBC Pro used FactSet to screen for stocks on the MSCI World index and S&P 500 that look well positioned to face up to the volatility and are expected to do well looking ahead.
CNBC Pro subscribers can read more concerning the stocks here.
— Weizhen Tan
Moody’s cuts outlook to negative on U.S. banking system
Moody’s Investors Service moved its view on the U.S. banking system to negative from stable on Monday, citing a “rapidly deteriorating operating environment.”
The move comes because the sectors reels following the closure of Silicon Valley Bank and Signature Bank. Banking stocks have mounted a comeback Tuesday after sliding over the past few sessions as concerns of contagion from the closures swirled.
“We’ve modified to negative from stable our outlook on the US banking system to reflect the rapid deterioration within the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s said in a report.
— Alex Harring, Jeff Cox
U.S. inflation data comes according to expectations
The patron price index rose 0.4% in February from the prior month, matching a Dow Jones estimate. The year-over-year increase of 6% was also according to expectations.
— Fred Imbert
European markets: Listed here are the opening calls
European markets are heading for a mixed open Wednesday.
The U.K.’s FTSE 100 index is predicted to open 7 points higher at 7,636, Germany’s DAX 21 points higher at 15,242, France’s CAC up 6 points at 7,144 and Italy’s FTSE MIB down 20 points at 26,312, based on data from IG.
Earnings are set to return from Prudential, Balfour Beatty, Lanxess, E.On, Inditex and H&M. On the info front, euro zone industrial production figures for January are set to be released.
— Holly Ellyatt