European markets rise as investors follow data, Fed minutes; Credit Suisse down 4%

Shares of Nemetschek climbed 7.5% in the early afternoon after the German software company launched a new cloud-based service on Tuesday.

At the bottom of the index, Spanish power utility Endesa fell more than 6% after new 2023-24 targets failed to excite analysts.

Beata Javorcik, Chief Economist at the EBRD, discusses the European Bank’s Energy Transition Report 2022-23.

Vincent Kaufman, CEO of the Ethos Foundation, which represents hundreds of Swiss pension funds that are active shareholders of Credit Suisse, criticizes the bank’s strategic overhaul and treatment of existing shareholders ahead of a key vote.

Bhanu Baweja, chief strategist at UBS Investment Bank, speaks to CNBC’s “Squawk Box Europe.”

Sven Jari Stehn, chief European economist at Goldman Sachs, said the energy crisis will push the eurozone into a “pretty shallow” recession next year. However, he adds that the region is “roughly” at the peak of inflation, with price increases expected to approach 3% next year.

Hassium Asset Management’s Yogi Dewan says it’s a good time to invest when asset prices are as low as they are.

Euro zone November PMI (Purchasing Managers Index) flash readings reaffirmed on Wednesday that the 19-member currency bloc had entered recession, but the slowdown in activity eased slightly.

S&P Global’s flash composite PMI, which encompasses services and manufacturing and is seen as a reliable gauge of economic health, rose to 47.8 in November from 47.3 in October, defying projections from a Reuters poll. for a drop to 47.0.

Any reading below 50 represents a contraction in activity, and November was the fifth consecutive month of contraction.

In the United Kingdom, the composite index changed little at 48.3 in November against 48.2 in October.

“Although business expectations have rebounded from the 30-month low in October – which was likely linked to the improving domestic political situation – current activity remains under heavy pressure due to weak confidence, cost pressures and tight financial terms,” ​​said Berenberg economists Holger Schmieding and Kallum Pickering. said in a note.

“Just as in the eurozone, businesses continue to create jobs. However, as labor market activity often lags broader economic trends, the slowing pace of job creation is likely a sign worrying that employment will eventually start to decline as the recession deepens over the winter.”

-Elliot Smith

Swiss credit Shareholders on Wednesday approved a 4 billion Swiss franc ($4.2 billion) capital increase aimed at funding the struggling lender’s massive strategic overhaul.

Credit Suisse’s capital raising plans are divided into two parts. The first, which was supported by 92% of shareholders, allocates shares to new investors including the Saudi National Bank via a private placement.

The new share offering will see the SNB take a 9.9% stake in Credit Suisse, making it the bank’s largest shareholder.

The second capital increase issues newly registered shares with pre-emption rights for existing shareholders, and was adopted with 98% of the votes.

-Elliot Smith

Johnson Matthey shares fell more than 6% to the low of the Stoxx 600 in early trading after the British chemicals group posted a drop in half-year profits, supply chain pressures weighing on production volumes for the company’s automotive customers.

Leading the index, German entertainment company CTS Eventim gained 4%.

Credit Suisse on Wednesday forecast a loss of 1.5 billion Swiss francs ($1.6 billion) in the fourth quarter as it undertakes a massive strategic overhaul.

The troubled lender last month announced a series of measures to address the continued underperformance of its investment bank and a series of risk and compliance lapses that have plagued it with persistently high litigation costs.

Shareholders will vote on the bank’s restructuring and capital increase plans at an extraordinary general meeting on Wednesday.

Read the full story here.

-Elliot Smith

Britain’s FTSE 100 is seen up around 12 points to 7,464, Germany’s DAX is expected to add around 25 points to 14,447 and France’s CAC 40 is expected to gain around 15 points to 6,673.

Electric vehicles are rapidly gaining popularity, especially in China, the world’s largest market for electric vehicles.

But UBS believes self-driving will be an even bigger megatrend than electrification – with a market size in China alone of around $100 billion by 2030.

Here’s how investors can play on this megatrend, according to UBS.

Pro subscribers can learn more here.

— Zavier Ong

According to Goldman Sachs, batteries for electric vehicles are gaining “critical importance” in the context of the energy transition.

The investment bank names two top stocks to play in the electric vehicle battery sector, offering a nearly 70% upside.

CNBC Pro subscribers can learn more here.

—Weizhen Tan