European markets open to close: Treasury yields, Ubisoft shares

British manufacturing output fell by the most since September 2020 in the three months to August, according to a survey by the Confederation of British Industry.

Its benchmark fell to -19 from +3, with the automotive industry and mechanical engineering among the worst performers.

Meanwhile, total orders were “below normal” in August.

“With production volumes shrinking at the fastest pace since the Covid-19 pandemic and order books deteriorating, this survey makes for a grim read,” said CBI economist Martin Sartorius.

“However, easing price pressures will bring some relief to many manufacturing companies and the economy in general.”

– Jenny Reed

Mark Hefell, chief investment officer at UBS Global Wealth Management, discusses the outlook for the US economy.

European stock markets opened higher before extending gains in early trade, with the Stoxx 600 up 0.9% at 9:07 AM GMT.

All sectors posted gains and technology stocks rose 2%, after upbeat sessions in the US and Asia-Pacific markets.

French game maker Ubisoft Entertainment rose 6.6% at 8:32 AM GMT, after Microsoft unexpectedly presented UK regulators with a new deal to acquire Activision Blizzard.

Under the restructured deal, Microsoft will not acquire the cloud rights to existing Activision hardware and consoles, or to new games released by Activision over the next 15 years. Instead, the rights will be transferred to Ubisoft prior to any acquisition.

UK authorities have rejected Microsoft’s initial bid to buy gaming giant Call of Duty. A decision on the new deal is scheduled for October 18.

Read the full story here.

Jenny Reed, Arjun Karpal

Woodside Energy CEO Meg O’Neill discusses Australian unions’ plan to hit gas rigs and says the company is optimistic about its ability to avoid significant industry action, adding “but again, at the end of the day” it would be unions calling if they wanted to use some of those levers. available to them.”

European stock markets are set to open higher on Tuesday, according to data from IG.

The FTSE 100 rose 19.5 points at 7278, the German DAX rose 86.6 points at 15683, and the French CAC40 rose 39 points at 7236.

Shares of SoftBank Group rose 3.36% on Tuesday on news that its chip unit Arm has applied to be listed on the Nasdaq stock exchange.

Arm did not disclose the share price and therefore does not yet have a valuation for the listing, but Reuters said it is expected to be the “biggest of the year”.

SoftBank shares pared gains later in the session and are currently up 2.16%.

US Treasury yields advanced on Monday as investors remain concerned that interest rates may remain higher for longer than expected. The yield on the 10-year Treasury note rose more than 9 basis points at 4.34%, trading near levels last seen in 2007.

– Piya Singh

UBS has identified stocks at risk of dragging one of Europe’s largest stock indexes down 10% by the end of this year.

The Swiss investment bank said 2023’s best performers, such as chip stocks and luxury goods makers, are at risk of significant declines by the end of the year.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Federal Reserve Chairman Jerome Powell may not focus on what’s best for him in his remarks from Jackson Hole, Wyoming, later this week, according to Mohamed El-Erian, Allianz’ chief economic adviser.

“It’s more likely that he will probably talk about short-term monetary policy issues,” El-Erian said on CNBC’s “Squawk on the Street.” “I don’t think that’s the best thing to do, because it’s a very delicate situation right now.”

However, El-Erian said that the head of the central bank can be helped given the “target-rich environment,” adding that there is “a lot” he can talk about.

– Alex Haring