European stock exchanges open at closing; markets brace for further Fed rate action

U.S. stocks opened higher as investors anticipated a possible interest rate hike announcement from the Federal Reserve later on Wednesday.

The Dow Jones Industrial Average rose 0.3% in early trading, while the S&P 500 rose 0.4%. The Nasdaq was also up 0.2% in early trading.

— Karen Gilchrist

Shares of Finland’s Fortum rose more than 9% in the early afternoon after the company agreed to sell its 56% stake in struggling German utility Uniper to the German government as part of a nationalization agreement. Uniper shares plunged more than 34% in Frankfurt.

At the bottom of the Stoxx 600, Games Workshop shares fell more than 9% after the British wargaming company released a trade update.

German auto and arms maker Rheinmetall rose 9.6% late in the morning, leading to large gains for defense firms after Russian President Vladimir Putin announced a partial military mobilization, an apparent escalation of tensions in the war in Ukraine.

Rheinmetall shares have been on a steady decline since Monday after it announced it had secured an order for vehicles for the German armed forces.

Rheinmetall was contracted to supply 48 fuel tankers for use at German Army and Air Force airfields.

—Hannah Ward-Glenton

Qatar Airways CEO HE Akbar Al Baker said on Wednesday that airlines would continue to fly to Russia as long as it was safely operational.

“We will continue to fly to Russia, we will continue to serve the people,” he told CNBC’s Hadley Gamble on Wednesday. “We are not a political institution. We are an industry serving ordinary people.”

The CEO said China’s Covid policies are “least worry” for him, particularly in relation to the potential escalation of the Ukraine-Russia war, which he said could fuel inflation and put less money ” passengers on airplanes.

“Like all other airlines still operating in Russia, we will continue to operate in Russia, as long as our operations in Russia are safe,” he said.

— Lee Ying Shan

The Bank of England’s monetary policy committee will announce its latest decision on Thursday, with analysts divided on whether to expect an interest rate hike of 50 or 75 basis points.

The Bank faces a crucial choice as it navigates a plummeting currency and the effects of a new government program on energy costs that has altered the outlook for inflation.

The Bank rose 50 basis points last month, its biggest increase since 1995, but some analysts say it will need to raise the bar and keep pace with its global peers to avoid a currency sell-off.

The pound fell to $1.1340 on Wednesday morning, its lowest since 1985.

Learn more here.

-Elliot Smith

Shares of Finland’s Fortum rose more than 9% in the early afternoon after the company agreed to sell its 56% stake in struggling German utility Uniper to the German government as part of a nationalization agreement. Uniper shares plunged more than 34% in Frankfurt.

At the bottom of the Stoxx 600, Games Workshop shares fell more than 9% after the British wargaming company released a trade update.

Russian President Vladimir Putin announced a partial military mobilization in Russia on Wednesday, putting the country’s people and economy on a war footing as Moscow’s invasion of Ukraine continues.

In a rare pre-recorded TV ad, Putin said the West “wants to destroy our country” and claimed the West had tried to “turn the Ukrainian people into cannon fodder”, in comments translated by Reuters.

Putin said the “mobilization events” would begin on Wednesday without providing many more details, apart from the fact that he had ordered increased funding to boost Russia’s arms production.

Learn more here.

– Holly Ellyatt

The German government agreed to the nationalization of utility Uniper on Wednesday as it struggles to keep the industry afloat in the wake of a global energy crisis.

Having already agreed in July to bail out the main gas importer with a 15 billion euro ($14.95 billion) bailout deal, the state will now buy Finland’s Fortum’s 56% stake for 0.5 billion euros. The German state is expected to own around 98.5% of Uniper.

“Since the stabilization package for Uniper was agreed in July, Uniper’s situation has further deteriorated rapidly and significantly; as such, further steps to resolve the situation have been agreed,” it said. Fortum in a statement Wednesday morning.

Learn more here.

– Elliot Smith

Oil prices edged higher after losing trade earlier on Wednesday ahead of an expected aggressive rate hike by the Federal Reserve.

Brent crude futures rose 0.23% to $90.83 a barrel, while US West Texas Intermediate also gained 0.17% to $84.10 a barrel.

“The US Energy Information Administration expects oil production in the seven major US oil and gas basins to increase slightly in September,” Commonwealth Bank of Australia analyst Vivek Dhar wrote in a note.

— Lee Ying Shan

FedEx’s dismal early results and revised outlook sent stocks tumbling last week, but is it as bad as it sounds?

CNBC Pro asked investment experts who weighed in on what the announcement means for the global economy and for investors.

Pro subscribers can learn more here.

— Zavier Ong

European businesses in China increasingly face an environment in which “ideology trumps economics”, the European Union Chamber of Commerce in China said in its annual position paper released on Wednesday. .

Joerg Wuttke, chairman of the group of companies, said this year’s Covid controls have turned China into a “closed” and “distinctly different” country that could entice businesses to leave.

Earlier this month, Chinese President Xi Jinping said the country had “continued to respond to Covid-19 and promote economic and social development in a well-coordinated manner,” according to a paraphrase of his remarks shared by the ministry. Chinese Foreign.

— Evelyn Cheng

As interest in battery stocks picks up after a tough year so far, CNBC Pro has analyzed a number of stocks in the sector that analysts say have serious potential.

CNBC Pro reviewed the Global X Lithium & Battery Tech ETF on FactSet for stocks that could outperform. A stock that was on the list has jumped more than 40% this year so far, and analysts say it’s still up more than 70%.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.

Britain’s FTSE index is expected to open down 47 points to 7,341, Germany’s DAX down 86 points to 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB down 132 points to 22,010 , according to data from IG.

Global markets fell following a stronger-than-expected U.S. consumer price index report for August, which showed prices rose 0.1% for the month and by 8.3% a year in August, the Bureau of Labor Statistics reported on Tuesday, defying economists’ expectations that headline inflation would fall 0.1% month-over-month.

Core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK Inflation figures for August are due and Eurozone Industrial Production for July will be released.

—Holly Ellyatt