European markets fell slightly as investors digested the central bank’s comments

Eurozone bond yields rose after the European Central Bank A clear signal to investors Interest rates will rise further and no cuts are on the horizon.

return on 10-year German bondsWhich is considered a benchmark for borrowing from the eurozone, rose 12 basis points to 2.2% at 11:30 am Berlin time.

that it Two-year bond yield It rose 11 basis points to 2.5%, the highest level since 2008, while the inversion of the yield curve in Germany hit a 30-year high.

An inverted yield curve was previously an indicator of recession and indicated a deteriorating near-term economic outlook.

The European Central Bank on Thursday slowed the pace of rate hikes to 50 basis points, but also announced the start of quantitative tightening in March 2023 and said the increases would continue at a “remarkably steady pace”.

It said the inflation projections it uses have been revised upwards and do not indicate a return to its 2% target until 2025; But she also expected the bloc’s slump to be “short-lived and relatively shallow.”

– Jenny Reed

European indices have remained resilient despite external shocks, Euronext CEO Stephane Boujna told CNBC’s Jomana Perisic at the Paris conference.

Boughna discussed recent market volatility, the strength of commodities and initial listings in the UK

Business activity in the eurozone continues to ease, according to the S&P Global Composite PMI, but the slowdown is easing.

The PMI rose to a four-month high of 48.8, up from 47.8 in November.

New data suggests that while a recession is likely, it may be smaller than previously expected.

December was the sixth month that the number fell below the 50 mark that divides growth and contraction, the longest streak of decline since June 2013.

– Hannah Ward Glinton

The slowdown experienced by British businesses eased slightly in the past month, according to UK Composite Global Purchasing Managers’ Index (PMI) data.

The index unexpectedly rose to 49.0 from 48.2 in November, well above Reuters economists’ estimate of 48.0.

The services sector led the increases, while British manufacturing continued to decline.

– Hannah Ward Glinton

The company said that Norwegian oil company Aker BP will invest more than NOK 200 billion ($20.5 billion) to develop oil and gas fields around Norway in the coming years.

Aker BP was one of several oil companies operating outside Norway to submit project plans for approval before the temporary tax benefits expire at the end of the year.

Aker BP is partly owned by BP and is the second largest petroleum producer outside Norway after Equinor.

– Hannah Ward Glinton

Shares of Games Workshop rose 12% after the company announced an agreement with Amazon to develop one of its games into a film and television production.

The British gaming manufacturer is best known as the maker of the miniature wargame Warhammer 40,000, which Amazon now has rights to use on its content services.

– Hannah Ward Glinton

European markets are expected to open higher on Friday.

Britain FTSE 100 index A rise of about 33 points is seen at 7456 points in Germany Dax It is set to jump about 33 points to 14019 and France CAC 40 It is expected to add about 18 points to 6533. Italy MIB The index is set to add 32 points to 23,787.

– Hannah Ward Glinton

Big tech stocks have been hit hard by the sell-off this year, but Morgan Stanley believes that twice a stock’s current share price represents “an opportunity to own one of the highest quality tech platforms.”

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– Xavier Ong

UBS raised its forecast for China’s GDP for 2023 to 4.9%, from 4.5% previously, according to China’s chief economist Wang Tao, citing an earlier and faster reopening in the country.

The company expects weaker GDP for the fourth quarter of 2022, Wang said, and lowered its full-year forecast to 2.7% from 3.1%, citing weak growth in November with the recent spike in Covid cases.

The company added that the Central Economic Work Conference is likely to prioritize achieving growth stability as well as supportive macro policies for the coming year.

“We expect fiscal policy to remain proactive with a slight increase in the primary deficit and a new LG private [local government] In the note, Wang said that bonds, monetary and credit policy will remain supportive with ample liquidity remaining, but any further interest rate cut is unlikely.

– Jihe Lee

Stock futures opened lower as investors exited the sell-off on the second day.

Dow futures lost 40 points, or 0.1%.

S&P 500 and Nasdaq 100 futures fell 0.1%.

– Alex Haring