31 Mins Ago
Euro slightly higher but economist warns of weakness ahead
The euro nudged higher against the U.S. dollar on Friday, trading up 0.16% at 9:50 a.m. in London as traders await data on private payrolls.
Daniel Lacalle, chief economist at Tressis Gestion, told CNBC’s “Street Signs Europe” on Thursday that the euro zone’s shared currency may struggle against the greenback this year as monetary policy diverges with the United States.
The European Central Bank has given a firm indication it plans to begin interest rate cuts in June, while the U.S. Federal Reserve has pushed back expectations due to persistent inflation.
“The problem of cutting rates right now is that the ECB takes for granted the strength of the euro. And if they start to cut rates ahead of the Federal Reserve, that is basically giving the world a signal that the euro needs to weaken,” Lacalle said.
“And if the euro weakens, the import bill of the euro zone is going to rise, making it even more difficult for the euro area to grow.”
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— Jenni Reid, Sam Meredith
2 Hours Ago
Europe stocks open higher
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Stoxx 600 index.
European stocks opened cautiously higher on Friday, with the Stoxx 600 index up 0.23% at 8:10 a.m. in London.
Germany’s DAX and the U.K.’s FTSE 100 were both up by 0.3%, while France’s CAC 40 nudged 0.2% higher.
— Jenni Reid
3 Hours Ago
UK retail had a damp April
A Uniqlo clothing store, soon to be opened, on Princes Street in Edinburgh, UK, on Wednesday, April 3, 2024.
Bloomberg | Bloomberg | Getty Images
U.K. shop footfall declined in April, according to figures from the British Retail Consortium, which partially blamed the unseasonably wet weather.
The number of shoppers on the high street dropped 6.9% year on year and 1.5% on the previous month. The BRC said that was also due to the Easter public holidays falling in April last year and March this year.
Footfall was lower by 6.2% in retail parks, and down by 7.2% in shopping centers. All U.K. nations and most cities had a weak performance.
“However, there was good news in Edinburgh, where footfall was positive once again owing to the investment in local shopping locations in the Scottish capital over the past few years,” said Helen Dickinson, chief executive of the British Retail Consortium.
Despite the gloomy start to spring, economists broadly expect a pick-up in the U.K. retail environment this year as real incomes rise.
— Jenni Reid
3 Hours Ago
Japanese yen recovers 4.5% against U.S. dollar, set for best week in over a year
The Japanese yen was trading at 152.93 against the U.S. dollar, and was set to end its best week in over a year, despite hitting its weakest level since 1990 on Monday at 160.03.
Analysts, including from BofA, have suggested there were likely two interventions carried out by Japanese authorities during the week, on Monday and Wednesday. The authorities are yet to make an official statement to confirm the interventions.
“The government has been refusing to disclose whether they’ve been intervening or not, but I don’t think many people have any doubts,” Nicholas Smith, Japan strategist at CLSA, told CNBC.
The yen has recovered some 4.5% since it hit a 34-year low on Monday.
3 Hours Ago
Europe stocks head for higher open
European stock markets are seen opening higher Friday, according to IG data.
The U.K.’s FTSE 100 was last seen up 18 points at 8,194 points, Germany’s DAX up 72 points at 17,980 and France’s CAC 40 up 24 points at 7,940.
Italy’s MIB was seen 153 points higher at 33,634.
— Jenni Reid
10 Hours Ago
CNBC Pro: Goldman says these global stocks will soar on an $857.5 billion electrification boom – gives one 45% upside
Demand for power and data centers has been taking the world by storm, and its not just the U.S. tech giants that are set to benefit, according to Goldman Sachs.
Europe is set see a pick up in demand and electricity consumption by as much as 50% in the next 10 years – reversing the slump it has been facing since 2008, the investment bank’s analysts noted.
The massive growth translates to an investment of nearly 800 euros ($857.5 billion) in Europe’s power transmission and distribution network, they added, naming stocks with over 30% upside potential on their radar.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
10 Hours Ago
CNBC Pro: Goldman names global stocks with the highest sustainable dividends, giving one 10% yield
European companies are more cash-rich than they’ve been in recent history.
Companies in the Stoxx 600 index have nearly 1.5 trillion euros ($1.6 trillion) in cash on their balance sheets — that’s 25% higher than pre-pandemic levels, according to Goldman Sachs.
And the dividend yield differential between Europe and the U.S. is the narrowest it’s ever been, making Europe more appealing, according to Goldman Sachs. “In other words, Europe has rarely looked cheaper on an absolute and relative basis,” it said.
CNBC Pro takes a look at some stocks that turned up on Goldman’s screen of high dividend yield names. They are companies in the Stoxx Europe 600 with the highest 12-month forward dividend yields in each sector.
Subscribers can read more here.
— Weizhen Tan