Stocks on the move: Telecom Italia up 11%, Electrolux down 8.5%
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Telecom Italia shot to the top of European stocks in early trade, rising 11% following reports U.S. private equity firm KKR & Co Inc was preparing to make a nonbinding offer for its fixed-line network.
The network provides key support to the struggling company’s massive debt load, Reuters reported.
Meanwhile, Electrolux dropped 8.5% after warning it would see lower sales this year and may suffer on higher energy and labor costs.
— Jenni Reid
European markets climb ahead of central bank announcements
Europe’s Stoxx 600 was 0.5% higher at the open as investors prepared for interest rate hike decisions from the Bank of England and the European Central Bank this afternoon.
That follows declines in the last three sessions. After the European close Wednesday, the U.S. Federal Reserve announced a smaller 25 basis point rate increase — but gave few hints its hiking cycle was coming to an end.
Germany’s DAX climbed 0.65%, France’s CAC 40 was up 0.6% and the U.K.’s FTSE 100 was up 0.2%.
Deutsche Bank smashes profit expectations in fourth quarter
Deutsche Bank reported its 10th straight quarter of profit, receiving a boost from higher interest rates and favorable market conditions.
The German lender reported a 1.8 billion euro ($1.98 billion) net profit attributable to shareholders for the fourth quarter, bringing its annual net income for 2022 to 5 billion euros, a 159% increase from the previous year.
It almost doubled a consensus estimate among analysts polled by Reuters of 910.93 million euro net profit for the fourth quarter, and exceeded a projection of 4.29 billion euros on the year.
Read the full story here.
Deutsche Bank share price
CNBC Pro: JPMorgan says Hong Kong shares to rebound in February and names 5 stocks to own
JPMorgan has named five stocks to own amid an expected rise in the broader Chinese stock market in February.
Strategists at the Wall Street bank attributed last week’s sell-off in Hong Kong-listed shares as profit-taking by some investors.
They said the wider stock market will be “grinding higher” this month but rotate into “quality laggards in consumption as well as value cyclical and growth spaces.”
CNBC Pro subscribers can read more about the 5 stocks JPMorgan has named.
— Ganesh Rao
CNBC Pro: Beware of tech stocks — these cash-rich names are a …….