Fed’s latest rate decision ahead

Stocks on the move: Ams-Osram up 5.8%, Hanover Rueck down 5.1%

Semiconductor manufacturer Ams-Osram rose 5.8% to lead the Stokk 600 on news that it had appointed Aldo Kamper, formerly of German cable and cable equipment company Aldo, as its new CEO.

At the other end of the European benchmark, Hanover Rich fell further in afternoon trade, down 5.1%, after reporting full-year results.

— Karen Gilchrist

US stocks open lower ahead of Fed decision

U.S. stocks fell in early deals on Wednesday as investors awaited the Federal Reserve’s interest rate decision.

The Dow Jones Industrial Average lost 234 points, or about 0.7%, at the open. The S&P 500 fell nearly 0.3%. Meanwhile, the Nasdaq Composite was down 0.2%.

— Karen Gilchrist

US private wage growth rose by 106,000 in January, less than expected

U.S. companies added fewer positions than expected in January, according to ADP.

Private payrolls rose 106,000 in January, below the Dow Jones estimate of 190,000 and the 235,000 reported for December.

— Sarah Min

Novartis reports flat revenue, says growth expected in 2023

Novartis CEO: Expect continued growth in 2023

Swiss drugmaker Novartis reported underlying operating income of $16.7 billion for 2022, broadly flat from the previous year.

Growth is forecast to be in the mid-single digits for 2023, when it should divest its Sandoz generics business.

Novartis CEO Vas Narasimhan told CNBC’s Geoff Cutmore that the company faced challenges in the first half of 2022, including hyperinflation and the ongoing impact of the coronavirus pandemic; but that these factors have stabilized, giving a tailwind for the coming year.

Narasimhan addressed the potential impact of the US Anti-Inflation Act on drug prices, which he said could be offset in the short term, but would require a rethinking of strategy over the long term.

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He also discussed pharmaceutical legislation in Europe, where he said governments need to “recommit to healthcare” and the European Commission needs to “create a more pro-innovation environment”.

Shares of Novartis were down 2.26% in early afternoon trade.

— Jenny Reed

BBVA’s president talks about the company’s record profits

BBVA's president talks about the company's record profits

Spanish bank BBVA reported record profits for 2022, attributing the rise to a jump in lending income and a strong performance in Mexico.

Net profit of 6.42 billion euros ($6.98 billion) for the full year was ahead of analysts’ expectations.

President Carlos Torres Villa told CNBC that he now expects lower growth from 2022 “but still growth.”

BBVA shares were trading 3.6% higher around midday London time.

— Jenny Reed

Inflation in the eurozone falls for the third month in a row as energy prices continue to fall

Inflation in the euro zone reached 8.5 percent in January, according to preliminary data published on Wednesday.

The 20-member region underwent a significant price hike in 2022 after Russia’s invasion of Ukraine drove up energy and food costs across the bloc. However, inflation began to moderate in late 2022, showing two consecutive months of reductions in headline levels. In December, the rate was 9.2%.

— Silvia Amaro

The main central banks are ready to signal the movement of interest rates

The US Federal Reserve, the European Central Bank and the Bank of England are all expected to raise interest rates again this week as they make their first policy announcements for 2023.

Economists will be watching policymakers’ rhetoric closely for clues about the path of future interest rate hikes this year, as the three major central banks try to engineer a soft landing for their economies without allowing inflation to regain momentum.

The market saw a 25 basis point increase in rates from the Fed on Wednesday, but the key question is what the Federal Open Market Committee will indicate about further rate hikes in 2023.

Meanwhile, the ECB and BOE are expected to hike 50 basis points on Thursday.

Read the full story here.

— Elliott Smith

Stocks on the move: Huskvarna up 6.2%, KinetiK down 4.2%

Swedish outdoor machinery dealer Huskvarna was the biggest gain since the open, up 6.2%, despite reporting a bigger operating loss in the fourth quarter. However, adjusted for items that include restructuring, the loss narrowed.

At the bottom of the Stokk 600 index, the British defense company KinetiK decreased by 4.2%.

German reinsurer Hanover Rueck fell by a similar amount after reporting higher full-year results that were in line with previous forecasts.

— Jenny Reid

European markets open higher as investors prepare for the next Fed hike

Europe’s Stokk 600 rose 0.3% in early trade, with travel stocks up 0.9% and financial services up 0.8%.

Britain’s FTSE 100 rose 0.25%, France’s CAC 40 rose 0.17% and Germany’s DAX rose 0.1%.

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The gains at the start of the year weakened, but European markets still managed to climb 6.72% through January.

Wednesday will be dominated by the announcement of the Federal Reserve’s monetary policy, where an increase of 25 basis points is expected, as well as hints about its future path and assessment of the US economy.

— Jenny Reed

European markets: Here are the initial calls

European markets are headed for a higher open on Wednesday as investors focus on the US Federal Reserve’s latest monetary policy announcement today.

of the UK FTSE 100 The index is expected to open 10 points higher at 7,781, German DAX 30 points higher at 15,154, France CAC by 10 points to 7,096 and Italy FTSE MIB by 75 points to 26,721, according to IG data.

Earnings come from Vodafone, GSK and Novartis. The main data release in Europe on Wednesday is the flash inflation data from the Eurozone for January.

— Holly Elliott

China’s factory activity contracts again

Chinese factory activity in January signaled further contraction from previous readings, albeit at a slower pace, marking the sixth consecutive monthly contraction.

The Caikin manufacturing PMI for January hit 49.2 on Wednesday, up slightly from December’s 49.0 but still missing Reuters expectations of 49.5

“Both manufacturing supply and demand continued to contract last month.” The consequences of the pandemic have made production and sales more difficult,” Caikin said in a press release.

— Lee Ying Shan

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