German industrial orders unexpectedly drop in November
On October 14, 2024, steam was rising from the coking plant near the Schwergen blast furnace at the German industrial group Thyssenkrupp’s plant in Duisburg, western Germany.
Ina Fassbender | AFP | Getty Images
Data released on Wednesday showed that German industrial orders unexpectedly fell in November, reflecting a darker outlook for Europe’s largest economy.
Industrial orders fell 5.4% quarterly in November According to data published by the German Federal Statistics Office (Destatis).
New orders, excluding large orders, still rose 0.2% from the previous month, the office said. Analysts polled by Reuters expected no change to the monthly data.
Destatis said the negative quarter-on-quarter growth in new manufacturing orders in November was mainly due to “large-scale orders for other transportation equipment (aircraft, ships, trains, military vehicles) received in October 2024.”
“There was no repeat of such a high volume of large-scale orders in November,” it added.
“As a result, new orders for the industry in November 2024 were 58.4% lower than the previous month on a seasonally and calendar adjusted basis.”
— Holly Elliot
Shell cuts LNG production forecast in fourth-quarter trading update
A Shell logo is displayed outside a petrol station in Radstock, Somerset, England on February 17, 2024.
Matt Cady | Getty Images News | Getty Images
British energy giant shell On Wednesday it cut its liquefied natural gas (LNG) production forecast for the fourth quarter of 2024 and warned that trading results at its chemicals and petroleum products division were expected to be “significantly lower” than in the third quarter.
in a Transaction updatesShell lowered its LNG production forecast for the final three months of last year to 68 to 7.2 million tonnes, below expectations previous predictions Between 6.9 and 7.5 million tons.
The company said trading results at its chemicals and petroleum products division were expected to be significantly lower than in the third quarter, “reflecting seasonality”.
Shell said it expected non-cash after-tax impairments of $1.5 billion to $3 billion in the fourth quarter and a $1.3 billion charge due to the timing of payment of emissions certificates. The latter fee is associated with licenses in Germany and the United States
The company will report fourth-quarter earnings on January 30.
Andrew Critchlow, head of news for Europe, the Middle East and Africa at Standard & Poor’s, said: “Overall, I think from the latest news that we heard from Shell today, it reinforces the Executive Officer) Wael Sawan, this is a cautious approach.
“Last year was a pretty tepid year for the oil market and that had a knock-on effect for all the oil majors,” Critchlow said.
— Sam Meredith
CNBC Pro: These 4 ETFs have outperformed the S&P 500 over the past five years
According to CNBC Pro screens, four ETFs in Europe and North America have outperformed the S&P 500 Index for the past five consecutive years.
The U.S. benchmark index is up 23.3% in 2024 and 24.2% higher than the year before, making it particularly challenging for funds to outperform. this is just third time According to Deutsche Bank, the S&P 500 has consistently posted gains of this magnitude over the past century.
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UBS says ‘bull market remains intact’ this year
Despite expensive valuations, UBS still sees U.S. stocks and artificial intelligence-related markets as attractive.
The company expects earnings growth to drive another year of “concentrated returns,” continuing its lead as a “Mag 7” in 2024.
“U.S. equity valuations are above average, but historically valuations have little correlation with returns over the next 12 months. Instead, profit growth matters more,” said David Leff, chief information officer for U.S. equities at UBS. David Lefkowitz wrote in a report on Monday. “We believe the bull market remains intact, driven by solid growth in the economy and corporate profits.”
Lefkowitz looks forward to ‘health’ S&P 500 Index Earnings per share are up 9% this year, and while the company expects volatility in the year ahead, it remains bullish on the stock market overall.
— Pia Singh
CNBC Pro: Goldman Sachs likes this European stock riding the data center wave
Goldman Sachs likes one of Italy’s cable-making giants.
The stock is one of the latest additions to the investment bank’s European “Strong Investment List – Director’s Picks”.
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European Markets: Here are the opening calls
European markets are expected to open broadly lower on Wednesday.
British FTSE 100 German stocks are expected to open 4 points lower at 8,242 German DAX Index France fell 40 points to 20,308 CAC Down 22 points to 7,477 points, Italy FTSE MIB It fell 83 points to 34,922 points, according to IG data.
Traders will keep a close eye on European consumer confidence and economic sentiment data. On the earnings front, Shell will release its latest results for the fourth quarter.
— Holly Elliot
