European markets were trading in negative territory Tuesday, retreating from yesterday’s mostly positive trading session as investors geared up for the latest U.S. inflation report this week.
The pan-European Stoxx 600 was down 0.3% during morning deals.
Basic resources stocks led the losses, shedding around 1% as investors reacted to Chinese import and export figures coming in below expectations.
Traders are looking ahead to U.S. inflation data due Wednesday. The consumer price index data will likely influence how the Federal Reserve proceeds on interest rates at its Dec. 17-18 meeting. Economists polled by Dow Jones forecast that headline inflation rose 0.3% in November and 2.7% over the prior 12 months.
Overnight in the Asia-Pacific region, China stocks were mixed on Tuesday amid broader gains among other regional markets.
SSE plans $28 billion investment in U.K. grid infrastructure
Electricity pylons hold power cables leading away from the SSE (Scottish and Southern Energy) gas-fired Keadby Power Station near Scunthorpe in northern England on September 6, 2022.
Lindsey Parnaby | Afp | Getty Images
British energy company SSE said Tuesday that its electricity network subsidiary SSEN Transmission plans to invest at least £22 billion ($28 billion) in new grid infrastructure between 2026 and 2031. The firm added its plans would be submitted to the U.K.’s energy regulator, Ofgem, for approval.
Britain’s government has set a target to decarbonize the country’s electricity grid by 2030. SSE said its five-year investment plan would help “underpin the UK Government’s Clean Power by 2030 ambition.”
Shares of the London-listed firm were down 0.9% by 10:48 a.m. London time.
— Chloe Taylor
Stellantis in new joint venture with China’s CATL
Stellantis and Chinese battery manufacturer CATL announced Tuesday that they would jointly invest up to €4.1 billion ($4.3 billion) in building a European battery factory.
The companies said the 50/50 joint venture would see the development of a new large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. Production at the facility is expected to begin by the end of 2026.
Milan-listed shares of Stellantis were up by around 0.5% at 10:00 a.m. London time.
Read more on the story here.
— Chloe Taylor
TeamViewer shares down after 1E deal announcement
TeamViewer logo on a smartphone and a PC screen in the background.
Sopa Images | Lightrocket | Getty Images
Shares of German software maker TeamViewer slid during early trade on Tuesday, losing just over 6% by 8:37 a.m. London time.
Earlier in the session, TeamViewer — which makes remote computer access software — announced it would acquire employee experience software maker 1E, with an enterprise value of $720 million.
TeamViewer CEO Oliver Steil said in a statement that the deal marked the company’s largest acquisition to date and would “accelerate enterprise growth, drive innovation and deliver greater value to our customers.”
— Chloe Taylor
Allianz raises financial targets
German insurer Allianz lifted its financial targets on Tuesday, ahead of its 2024 Capital Markets Day in Munich.
The company pledged to return more money to its shareholders, aiming to boost earnings per share by 7% to 9% every year until 2027 — a rise from its 5%-7% target between 2021 and 2024. Allianz also said Tuesday it was targeting return on equity of at least 17%, up from its 13% target for the three years ending 2024.
The company said it saw revenue growth of 6% to 7% annually for its property-casualty division, which could bring in an operating profit of up to 9.5 billion euros ($10 billion) by 2027.
Allianz shares were down 1.2% on Tuesday morning.
— Chloe Taylor
Germany confirms harmonized inflation at 2.4% for November
Germany issued a final reading of its November inflation data on Tuesday, confirming the preliminary harmonized print of a 2.4% year-on-year increase, according to state news agency Destatis.
It noted that the November inflation was exacerbated by price hikes in the services sector, but benefitted from a “dampening effect” from energy prices.
— Chloe Taylor
China posts unexpected imports slowdown
Import and export data from China’s customs authority fell short of expectations on Tuesday.
Imports in U.S. dollar terms for November contracted 3.9% year-on-year, the biggest decrease since Sept. 2023. Meanwhile, exports were up 6.7% — but analysts polled by Reuters had anticipated a year-on-year rise of 8.5%.
Read the full story here.
— Chloe Taylor
CNBC Pro: Deutsche Bank names its UK “top pick” stocks with compounding growth potential — and one has more than 50% upside
Deutsche Bank has named seven London-listed companies in the business services sector as its top investment picks for 2025, highlighting shares with strong growth potential and defensive characteristics in an uncertain market environment.
One of the stocks has the potential to rise by more than 50% over the next 12 months, the bank said.
CNBC Pro subscribers can read more here.
— Ganesh Rao
European markets: Here are the opening calls
European markets are expected to open in negative territory Tuesday.
The U.K.’s FTSE 100 index is expected to open 38 points lower at 8,315, Germany’s DAX down 76 points at 20,274, France’s CAC down 31 points at 7,454 and Italy’s FTSE MIB down 139 points at 34,429, according to data from IG.
There are no major earnings releases in Europe Tuesday. Data releases include final German inflation data for November.
— Holly Ellyatt