European markets open higher, recession risks, data, earnings

Stocks on the move: ITV up 9.6%, Hargreaves Lansdown down 4.4%

Shares in ITV are up 9.6% following a report by the Financial Times that it may be selling a stake in its production arm ITV Studios.

ITV Studios is one of the largest program producers in Europe and some analysts estimate it could be worth more than its parent company’s £2.5 billion ($2.82 billion) market capitalization.

British investment platform Hargreaves Lansdown is down 4.4% following slowed earnings reports and news that CEO Chris Hill is stepping down. The company reported assets under administration fell during the first quarter of fiscal 2023.

The organization has also been hit by a multimillion pound lawsuit over the failure of one of its former fund managers, Neil Woodford.

— Hannah Ward-Glenton

UK government bond yields drop ahead of fiscal statement

The yields on long-dated U.K. government bonds, known as gilts, have fallen ahead of a fiscal statement by the new Finance Minister Jeremy Hunt expected later today.

10-year gilt yields fell 19 basis points to trade around 4.129%.

The yield on 20-year gilts was down around 15 basis points at market open, while 30-year index-linked gilt yields were down around 17 basis points.

Yields on 5-year and 2-year gilts also slid Monday.

— Hannah Ward-Glenton

British pound strengthens after policy reversals

Sterling rose on Monday morning in Asia following more policy reversals by the U.K. government late last week. The pound was last 0.56% higher at $1.1233.

CNBC Pro: Nearing retirement? How to allocate your portfolio right now, according to the pros

Despite the volatility in markets, asset managers say it’s important to remain invested if you’re nearing retirement.

But how should one allocate funds, bearing in mind unsettled markets, a shorter investing horizon and the need for retirees to have some liquidity?

CNBC Pro asks the experts for their views.

Pro subscribers can read more here.

— Weizhen Tan

China’s central bank leaves medium-term rates unchanged

The People’s Bank of China rolled over its medium-term lending facility (MLF) loans and kept its interest rate unchanged at 2.75%, according to a statement on its website.

The central bank announced it would keep the one-year rate unchanged for a second month and injected 500 billion yuan ($70 billion) through the MLF.

A Reuters poll expected no change to the MLF rate and a partial rollover of loans from the central bank.

—Jihye Lee

CNBC Pro: As market volatility persists, Wall Street analysts say to sell these stocks

Stocks worldwide have taken a beating this year, and major indexes remain deep in negative territory.

As investors weigh whether to sell or stay invested, CNBC Pro screened almost 1,500 large and mid-cap global stocks and found a number of major companies with sell or underweight ratings.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets: Here are the opening calls

European markets are heading for a lower open on Monday as investors survey the deteriorating economic outlook.

The U.K.’s FTSE index is expected to open 31 points lower at 6,819, the German DAX down 60 points at 12,377 and the French CAC 29 points lower at 5,902, according to data from IG.

The lower open in Europe comes amid increasingly pessimistic global sentiment; shares in the Asia-Pacific region fell on Monday as recession fears weighed on sentiment.

In the U.S., meanwhile, stock futures traded higher early on Monday as investors awaited big earnings reports to roll in from Bank of America on Monday, while Goldman Sachs will release numbers Tuesday morning.

Last week, a hotter-than-expected inflation reading stoked wild price swings in the markets as investors readjusted their expectations for the U.S. Federal Reserve’s forthcoming rate hikes.

On the data front in Europe, final inflation reading data for Italy in September is due.

— Holly Ellyatt

CNBC Pro: Morgan Stanley’s Mike Wilson flags a key risk to earnings — and names the stocks to avoid

Morgan Stanley’s U.S. equity team, led by Michelle Weaver and Mike Wilson, says there’s a key risk to earnings on the horizon.

The investment bank named several stocks it believes will be most impacted in the next 3-6 months, and which could see downside to their share prices in the same period.

Pro subscribers can read more here.

— Zavier Ong

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