European stocks rise; Renault up 6% after reports of Nissan-Honda merger talks – CNBC

Sylvain Breuer, chief EMEA economist at S&P Global Ratings, said in a note to clients on Wednesday that investors should prepare for a challenging trading environment next year.

“We expect European economies and markets to be subject to high volatility over the next 12 months, between a possible correction of the economic anomalies that surfaced in 2024 and a possible policy shift in 2025,” Breuer said. “I am doing so,” he said. member Member of the “Shadow Council” of European Central Bank economists.

The incoming US administration of Donald Trump, a change in EU leadership, and the upcoming German elections are all clouding Europe's economic outlook, he added.

— Chloe Taylor

Investors shouldn't expect UK interest rates to fall until 2025, Morgan Stanley's chief UK economist Bruna Scalica said in a note to clients on Wednesday.

The Bank of England had previously suggested four rate cuts could be made in 2025, but weak economic data over the past week has dampened hopes that such a cut is imminent.

Markets overwhelmingly expect the Bank of England to keep interest rates unchanged at Thursday's Monetary Policy Committee meeting, according to overnight index swap data. The data also shows that traders are divided on whether the central bank should keep its key interest rate at 4.75% or lower it when the MPC meets again in February. A minority is leaning towards leaving it unchanged.

Skarica said in a note Wednesday that he is far from that consensus, stressing that he “expects the next rate cut to be in February.”

— Chloe Taylor

Shares in Swedish real estate group SBB soared during trading on Wednesday, rising 23% by 9:50 a.m. London time.

Stock price rise happened after SBB announced The bond exchange has been completed, with creditors agreeing to exchange 2.8 billion euros ($2.94 billion) worth of debt for the new bonds.

SBB CEO Rave Thinness told Reuters wednesday exchange — 95% of relevant creditors accepted this — This will allow the company to move forward with its restructuring plans.

— Chloe Taylor

Economist Rafael Gallardo told CNBC on Wednesday that financial markets have allowed countries like France to get away with flouting the euro zone's fiscal rules for too long.

France is one of many eurozone countries that does not meet the single currency union's fiscal rules, which require member countries to keep budget deficits below 3% of GDP (gross domestic product) and public debt below 60%. It is one of the member countries.

However, the French government expects the budget deficit to reach 6.1% of GDP this year, while the International Monetary Fund expects the country's debt-to-GDP ratio to reach around 112%. France currently does not have a budget for 2025 due to debates among lawmakers over tax and spending plans, and amid ongoing political turmoil, this year's fiscal plan will be brought forward instead.

Gallardo, Carmignac's chief economist, said France has not respected this rule for many years.

“Unfortunately, the problem with the eurozone is that you can't have a monetary union with the eurozone without fiscal discipline and mechanisms to enforce that fiscal discipline.In the case of France, for 25 years we have never set the rules We haven't respected that,” he said on CNBC's “Squawk Box Europe” on Wednesday.

“The safeguards in the European constitution are completely unenforceable against the French government, and the market is not playing its role, because they think France, the core country, will be bailed out,” he said.

— Holly Ellyatt

Shares in Italian lender UniCredit rose 0.5% by 8:45 a.m. London time after the bank said it had raised its potential stake in Commerzbank to 28%.

UniCredit previously held a 21% stake in the German lender.

Read the full text here.

— Chloe Taylor

Shares in French automaker Renault rose 5.39% by 8:21 a.m. London time following reports that Nissan and Honda will enter into merger talks.

Renault holds a minority stake in Nissan, whose Tokyo-listed shares rose 24% during Asian trading, their best day in 40 years.

— Chloe Taylor

British inflation rose to 2.6% in the year to November, in line with expectations, but further dampened hopes for a rate cut by the Bank of England on Thursday.

Britain's annual inflation rate was 2.3%. in october.

The UK 10-year gilt yield was little changed at 4.519% as of 7:05 a.m., while the pound sterling was trading around $1.2700, down 0.07% against the dollar.

Markets now overwhelmingly expect the Bank of England to keep its key interest rate unchanged at 4.75% at its final Monetary Policy Committee meeting of the year, according to overnight index swap data.

Read the full text here.

— Chloe Taylor

The British pound fell against the dollar and euro on Wednesday morning as investors awaited the latest British inflation figures and a policy update from the Bank of England.

By 6:35 a.m. London time, the pound was down about 0.1% against the euro and 0.06% against the dollar.

November inflation figures to be released on Wednesday morning come after official figures show UK wage growth It rose 5.2% in the three months to October.Meanwhile, the country's economy unexpectedly contracted that month.

On Thursday, the Bank of England will make its final monetary policy decision of the year.

— Chloe Taylor

6 stocks of S&P500 According to a CNBC Pro analysis, there has been an inverse correlation to Nvidia's stock price movements over the past month.

As Nvidia fell from its all-time high, five of the six stocks also rose an average of 6.75%.

This represents a drop of more than 10% from last month's closing high of $148.88 as Nvidia fell into correction territory this week.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets are expected to open lower on Wednesday.

british FTSE100 The index is expected to open eight points lower at 8,191. dachshund 20,202, France, down 48 points CAC 7,353, down 10 points, Italy FTSE MIB According to IG data, it decreased by 100 points to 34,258.

The data release will also include UK inflation statistics.

— Holly Ellyatt