Stocks, News, Data and Earnings

Swedish property group SBB topped the Stoxx 600 in afternoon deals, then rose 4.5%. declares It explores strategic options, including the sale of the company or specific assets and divisions. The company’s shares have fallen 80% in the past year as it struggles with a high interest rate environment.

Meanwhile, Swedish video game maker and media company Embrace Group slipped to the bottom of the European benchmark, down 7.3% amid uncertainty over the status of its latest game release.

– Karen Gilchrist

John Ricciardi, head of global asset allocation at Deuterium Capital Management, says it’s “very favorable to risk assets that trade … at very steep discounts to standard valuations.”

Markets have long priced in interest rate cuts by major central banks until the end of 2023, but sticky core inflation, tight labor markets and a surprisingly resilient global economy are leading some economists to reassess.

Stronger-than-expected U.S. jobs figures and GDP data highlighted a key risk that the Federal Reserve could take its feet off monetary policy. An economic slowdown and continued labor market tightening could put upward pressure on wages and inflation, which is at risk of becoming entrenched.

Read the full story here.

– Elliott Smith

European markets are expected to open higher on Monday.

The UK’s FTSE 100 index is expected to rise 12.1 points to 7,641, Germany’s DAX up 34 points to 16,015, France’s CAC up 6.2 points to 7,331 and Italy’s FTSE MIB up 80 points to 26,838.

– Jenny Reid

The dollar index could strengthen to 105 in the short term with the US jobs report due later this week and a vote on the debt ceiling deal, SMBC said in a note on Monday.

“Asian currencies are expected to weaken, but risk-on sentiment after the Fed’s pause in rate hikes is expected as more market participants look for opportunities for Asian currencies,” wrote Ryota Abe, Asia Pacific economist at Sumitomo Mitsui Banking Corporation (SMBC).

The dollar index fell slightly to 104.164 in the Asian morning session. The Japanese yen strengthened slightly to 140.52 against the US dollar, while the offshore Chinese yuan weakened to 7.0791 against the greenback.

“U.S. economic data released last week supports bearish stance on rate hikes,” Abe wrote in the note. “Combined with the CPI released earlier this month, the data shows stronger-than-expected inflationary pressures, rekindling inflation concerns in the US,” he wrote.

– Jihye Lee

The Turkish lira weakened against the US dollar as incumbent President Recep Tayyip Erdogan secured victory in the 2023 presidential election, extending his reign to a third decade in power.

As of 4 am London time on Monday, the coin was valued at 19.97.

“We have a pretty pessimistic outlook on the Turkish lira as a result of Erdogan retaining office after the election,” Brendan McKenna, emerging markets economist and FX strategist at Wells Fargo, told CNBC’s “Squawk Box Asia.”

“It’s a very bleak economic and market outlook for Turkey,” added McKenna, who predicted the lira would hit a new record high of 23 against the dollar by the end of the second quarter.

– Lee Ying Shan

Artificial intelligence has taken the investment world by storm since the start of the year – thanks largely to the emergence of ChatGPT, which sparked a wave of buying into AI-related stocks.

Here to stay or just for the thrill?

CNBC’s “Street Science Asia” has a bull and a bear going head-to-head, telling investors how they can navigate the dilemma, as well as which stocks to play the trend.

CNBC Pro subscribers can read more here.

– Weissen Don