European Markets Close Lower as Volatility Continues


This is CNBC's live blog covering European markets.

European markets closed lower on Monday as volatility continued amid concerns over economic growth and monetary policy tightening from central banks.

The pan-European Stoxx 600 provisionally ended down 0.25%, with major bourses closing mixed. Technology stocks led losses, finishing the session down 1.7%. Meanwhile retail and chemicals stocks both closed up around 1.7%.

Along with concern over interest rate hikes from central banks and their impact on economic growth, markets in Europe were also watching developments in Ukraine, where the war is showing signs of escalating. Multiple explosions hit the center of Ukraine's capital Kyiv on Monday.

European shares initially followed negative global sentiment as investors bet that last week's U.S. jobs data will keep the Federal Reserve on an aggressive path of interest rate hikes. However, opening losses were all but erased by late morning.

U.S. stock futures were higher in early deals Monday, with Wall Street looking ahead to a key inflation print on Thursday and the beginning of corporate earnings season.

Markets in Asia-Pacific retreated overnight, with Hong Kong's Hang Seng index leading losses as Chinese chip stocks listed in the city plunged following new export rules from the U.S.

U.S. markets open higher

U.S. stocks opened higher Monday as Wall Street looked ahead to key earnings and inflation reports to be released this week.

The Dow Jones Industrial Average was 0.5% higher in early deals while the S&P 500 was up 0.1%. The Nasdaq Composite, however, dipped 0.5%.

— Karen Gilchrist

The war in Ukraine is a 'fight until collapse,' TS Lombard analyst says

The war in Ukraine is a "fight until collapse," Christopher Granville, managing director at TS Lombard says.

Stocks on the move: DS Smith up 12%, Oxford Nanopore down 7%

British packaging company DS Smith saw its shares jump more than 12% by mid-afternoon after projecting that annual performance ahead of expectations, on the back of robust revenue growth and cost-cutting measures.

At the bottom of the Stoxx 600, Britain's Oxford Nanopore shares fell more than 7% after a director share sale disclosure.

- Elliot Smith

UK Finance Minister Kwarteng brings forward fiscal policy plan to Oct. 31

U.K. Finance Minister Kwasi Kwarteng will now deliver his medium-term fiscal plan — building on the controversial Sep. 23 "mini-budget" — on Oct. 31, three weeks sooner than previously scheduled.

Last month's policy announcements spooked the market, leading the pound to all-time lows and forcing the Bank of England to intervene in the bond market to prevent the collapse of pension funds.

The new date will allow the independent Office for Budget Responsibility (OBR) to assess critical data updates and embark on a full forecast process, Kwarteng told parliament's Treasury Select Committee in a letter.

- Elliot Smith

Stoxx 600 touches one-week low

The European blue chip index briefly touched a one-week low on Monday morning, falling more than 0.8% before recouping some of its losses.

Concerns over economic growth, in the face of tightening monetary policy and the war in Ukraine, continued to dampen investor sentiment.

Stocks on the move: DS Smith up 8%, ams-Osram down 9%

British packaging company DS Smith saw its shares jump more than 8% in early trade after projecting that annual performance ahead of expectations, on the back of robust revenue growth and cost-cutting measures.

At the bottom of the Stoxx 600, ams-Osram shares fell more than 9% after announcing that its CFO plans to step down from April 2023.

- Elliot Smith

Bank of England announces liquidity measures to help ease pension fund issues

The Bank of England is set to introduce further liquidity measures as it seeks to ensure financial stability in the U.K.

It comes after the central bank on Sep. 28 announced a two-week emergency two-week purchase program for long-dated U.K. government bonds. It was designed to protect liability driven investment (LDI) funds from imminent collapse.

Now, the BOE has announced further measures to ensure an "orderly end" to its purchase scheme on Oct. 14, including increasing the size of its daily auctions to allow headroom for gilt purchases ahead of Friday's deadline.

Read more here.

Elliot Smith

CNBC Pro: Goldman says these 'cheap' global stocks are set to win in the short and long-term

As Europe struggles with soaring electricity and gas bills, Goldman Sachs says global companies focussing on energy efficiency are set to outperform.

"We think Energy Efficiency companies can outperform over the short term, with the focus on energy efficiency to tackle the current energy crisis that followed the Russian invasion of Ukraine," the analysts wrote in a note on Oct. 3.

"[And] over the long term, with the focus on energy efficiency to tackle the climate change and reach the ambitious 'net zero' targets."

CNBC Pro subscribers can read more here.

— Weizhen Tan

Here are the opening calls

Britain's FTSE 100 is seen around 51 points lower at 6,940, Germany's DAX is set to slide by around 122 points to 12,151 and France's CAC 40 is expected to drop around 61 points to 5,806.

CNBC Pro: Porsche is now more valuable than VW: Here's what the pros think of the carmakers

A week after its stock market debut, luxury automaker Porsche's market cap raced past its former parent company Volkswagen Group's.

Some fund managers are already comparing the German firm to Tesla, the largest electric carmaker in the world, saying Porsche's electrification plan for its hot-selling Macan EV is expected to be an instant success.

Compared to its parent company VW, which makes nearly 10 million cars annually, Porsche manufactures just over 300,000 cars but accounts for a quarter of the profits at Volkswagen.

CNBC Pro subscribers can read more here.

— Ganesh Rao

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