Stocks, news and the ECB’s interest rate decision

European Central Bank President Christine Lagarde is likely to shy away from requiring the central bank to cut interest rates in December, according to Iain Stealey, international chief investment officer for global fixed income and commodities at JP Morgan Asset Management.

His comments come ahead of the ECB’s next monetary policy decision on Thursday, where many expect the central bank to cut interest rates by a quarter point for the second day in a row.

“If we took a step back, say three weeks ago, we wouldn’t have thought we would be talking about a cut today because, as you said, it’s not the norm that they do one meeting after another, and ” It felt like they were skipping that meeting and moving on to December,” Stealey told CNBC’s “Street Signs Europe” on Thursday.

“But I think perhaps more important is what the future looks like,” he continued. “I do believe that Christine Lagarde will try to distance herself from committing completely to December.”

–Sam Meredith

European markets extended gains in morning trade as investors prepared for the European Central Bank’s widely expected first consecutive interest rate cut in 13 years.

The pan-European Stoxx 600 was trading 0.7% higher around 11:50 a.m. London time. The regional benchmark index opened Thursday’s session slightly above the zero line.

–Sam Meredith

Shares of German lab supplies maker Sartorius rose nearly 12% on Thursday after the company reported expected nine-month results and confirmed its full-year outlook.

The news saw the company rise to the top of the Stoxx 600.

–Sam Meredith

Nokia shares fell more than 4% on Thursday after the Finnish telecommunications company reported mixed third-quarter earnings.

The company posted a 9% year-on-year increase in third-quarter operating profit, beating analysts’ estimates, but reported quarterly net sales rose 8% year-over-year to 4.33 billion euros ($4.7 billion). went back.

The stock plunged to the bottom of the pan-European Stoxx 600 on the news.

–Sam Meredith

The euro traded 0.1% lower at $1.0852 on Thursday morning as investors awaited the European Central Bank’s next monetary policy decision.

The ECB is widely expected to decide to cut interest rates by a quarter point for the second time in a row later today.

The new CEO of Swiss engineering group ABB said Thursday that fast-growing data centers and the electrification of everything are “really driving” the business forward.

His comments come as the group reported mixed quarterly results. ABB achieved core operating profit of $1.55 billion in the third quarter, repeating a record operating EBITA (earnings before interest, taxes and amortization) margin of 19%. The company also raised its profitability expectations for the full year.

However, ABB said it expects full-year comparable sales growth of “less than 5%,” a slight deterioration from a previous forecast of “around 5%.”

“We had a very strong quarter with order growth and a positive inventory to build and also, as you said, a record profit, which clearly shows the advantage of having a broad industry presence, especially in the electrification of everything these days.” “ Morten Wierod, CEO of ABB told CNBC’s “Squawk Box Europe” on Thursday.

“And given the obvious upswing in data centers and the need for power, that’s the real driver for ABB right now,” he added. Wierod took over the management of ABB on August 1, succeeding Björn Rosengren.

Shares of ABB rose 1.1% on Thursday morning.

–Sam Meredith

Swiss food giant Nestlé on Thursday reported weaker-than-expected underlying sales growth for the first nine months of the year and cut its forecast for full-year sales.

Nestle reported organic sales growth of 2% for the first nine months of 2024, weaker than analysts polled by Reuters forecast 2.5%.

The company, which also announced a leadership reshuffle and organizational changes, said it now expects full-year revenue growth of about 2%, in line with the first nine months. The company had previously forecast organic sales growth of at least 3% for 2024.

Shares of the company fell 2.3% on Thursday morning.

–Sam Meredith

European stocks rose slightly shortly after the opening bell on Thursday.

The pan-European Stoxx 600 Trading rose nearly 0.2%, with most sectors in positive territory.

–Sam Meredith

The chief executive of French power equipment maker Schneider Electric said on Thursday that the company’s $850 million deal to acquire a majority stake in U.S. liquid cooling company Motivair will help strengthen its offering for fast-growing and energy-intensive data centers.

“We’ve always said we’re going to be agile in terms of acquisitions and targets out there that fit right into Schneider Electric’s strategy,” Schneider Electric CEO Peter Herweck told Squawk Box Europe on Thursday CNBC.

“And as the largest provider of infrastructure for data centers, we have kept pace with the development [generative] AI and large language models require more high-density data centers and you have to…go from the grid to the chip and then from the chip to the cooler.”

Herweck said the all-cash deal announced Thursday to acquire an initial 75% majority stake in Motivair’s equity was “rich but not overly expensive” and “an excellent fit” with the company’s strategy.

The acquisition comes at a time when a global rush for the next wave of generative AI is coupled with increasing public attention to environmental concerns, with tech giants recently switching to nuclear power to advance their AI ambitions.

–Sam Meredith

The European Central Bank (ECB) is likely to cut interest rates by 25 basis points on Thursday, but market participants should not expect any big predictions going forward, according to Goldman Sachs.

Jari Stehn, chief European economist at Goldman Sachs, said one of the reasons the euro hasn’t come under more pressure in recent weeks is that the ECB has cut interest rates “in a very data-dependent way, without telling you very much.” to give of it”. Guidance on where to go next.

“And we believe that will be the message today as well,” Stehn told CNBC’s “Squawk Box Europe” on Thursday.

“So we get the 25 basis point cut,” Stehn said, citing weaker economic data. “But I feel that the ECB is not really ready to commit to a particular path at this point.”

–Sam Meredith

European markets are expected to open mixed on Thursday.

The United Kingdom FTSE 100 The index for Germany is expected to open 31 points higher at 8,360 DAX 21 points higher at 19,472, France CAC plus 4 points to 7,495 and Italy FTSE MIB down 10 points to 34,482, according to IG data.

The main focus of investors today is the European Central Bank’s latest monetary policy decision. Income now comes from ABB, Nestle, Pernod Ricard, Publicis and Nokia.

Other data releases include European trade balance figures and inflation data.

– Holly Ellyatt

Nine healthcare stocks have more than doubled in value this year and still have more than 100% upside potential, according to analysts.

CNBC Pro searched more than 85,000 stocks worldwide to find stocks that are up 100% in 2024, have at least five or more analysts covering them, and whose median price target suggests greater than 100% upside potential.

Biotech stocks are up an average of 188% this year and have a median upside potential of 150%.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Barclays has named a number of global stocks that investors should consider buying before the end of the year, citing “conviction stock ideas with catalysts.”

The bank’s list includes six overweight UK stocks, two of which it saw gains of over 35%.

CNBC Pro subscribers can read more here.

—Amala Balakrishner