World Economic Forum kicks off in Davos

Stocks on the move: Temenos up 5%, Tecan down 4%

Temenos shares gained more than 5% in early trading to lead the Stoxx 600 after the Swiss software company announced that CEO Max Chuard would step down.

At the bottom of the European blue chip index is fellow country manufacturer of laboratory equipment Tecan group fell 4% after Kepler Cheuvreux downgraded the stock from “buy” to “hold” and lowered its price target.

—Elliot Smith

CNBC Pro: Want an alternative to Tesla? Analysts and fund managers reveal their best EV stocks

CNBC Pro: Analysts Like These 12 Cheap Stocks — And Give One a 70% Rise

2022 was a bad year for many investors, with most stocks – especially technology – plummeting to levels not seen since 2008.

But there could be opportunity in the chaos, with some companies trading at sharper price-to-earnings discounts than in recent history.

CNBC Pro screened for these names who are also Wall Street favorites.

CNBC Pro subscribers can read more here.

— Weizhen Tan

The inflation outlook is softening again, with traders fully expecting a rate hike of a quarter point

Declining consumer inflation expectations coincide with the expectation that the Federal Reserve will likely taper the level of interest rate hikes within a few weeks and end them soon.

The University of Michigan Consumer Confidence Survey on Friday found that the one-year inflation expectation has fallen to 4%, the third straight monthly decline and the lowest level since April 2021.

At the same time, traders assigned a 94.2% chance of a 0.25 percentage point rate hike on Feb. 1, when the Fed’s next two-day meeting closes. That’s another smaller step than December’s 0.5 percentage point increase, which itself was a slowdown from four consecutive 0.75 percentage point increases.

“Inflation expectations are well anchored and are improving as price pressures ease in many sectors. The Fed is likely to raise by 0.25% at its upcoming meeting later this month,” said LPL Financial chief economist Jeffrey Roach. “We shouldn’t be surprised if the Fed starts talking about a break in the near future.”

—Jeff Cox

European markets: Here are the opening calls

European markets are heading for a higher opening Monday as investors gauge global inflation prospects following positive signs from US data last week.

That of the UK FTSE 100 index is expected to open 10 points higher at 7,856, Germany DAX 84 points higher at 15,174, France CAC 43 points up to 7,063 and Italy’s FTSE MIB Up 142 points to 25,895, according to data from IG.

Data releases include Germany’s ZEW economic sentiment survey for January and preliminary Italian inflation data for January. The World Economic Forum begins in Davos, Switzerland, on Monday.

— Holly Ellyatt

Leave a Comment