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European Markets Close Slightly Higher as Investors Await Fed Notes

European Markets Set to Open Higher as Investors Await Fed Notes
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This is CNBC's live blog covering European markets.

European markets closed slightly higher Monday after a choppy day of trading, with attention this week set to be on the publication of Federal Reserve meeting notes.

The pan-European Stoxx 600 index moved between slight losses and gains throughout the session. It closed up 0.1%.

Mining stocks were the most upbeat, adding 2.4%, while tech stocks fell 0.6% and household goods dropped 0.5%.

The Stoxx defied markets in the U.S. and Asia to climb higher last week despite a slight retreat on Friday, as the economic outlook for the region continued to brighten and several corporate earnings beat expectations.

The index reached a one-year high, while both the FTSE 100 and France's CAC 40 touched record highs during the week.

Investors will be keenly watching as the U.S. central bank releases minutes from its latest meeting on Wednesday.

EU figures published Monday morning showed production in the construction sector contracted by 2% in December, with an 8% decline in Germany. Construction and materials stocks brushed off the news to trade 0.3% higher.

Monday afternoon also saw the publication of euro zone consumer confidence data, which showed an increase to -19.0 in February. The figure matched forecasts by Reuters analysts, but showed consumer confidence was still well below the long-term average.

Markets in Asia-Pacific closed mostly higher as the People's Bank of China left its 1-year and 5-year prime loan rates unchanged, as was widely expected.

U.S. markets were closed Monday for Presidents' Day.

Euro zone consumer confidence increased in February

Euro zone consumer confidence increased in February, according to a flash estimate published by the European Commission. Confidence was up by 1.7 points compared to January to reach -19.0.

The estimate matched forecasts by Reuters analysts.

While consumer confidence has now improved for four consecutive months, it remains well below its long-term average, according to the Commission.

— Hannah Ward-Glenton

Telecom Italia shares fall as government grid offer fails to appear

Shares of Telecom Italia were down 2.2% at midday after a rumored government-sponsored offer for some of its key assets failed to materialize over the weekend.

Officials told Reuters the Italian state lender was still trying to secure government backing to submit an offer, along with Australian fund Macquarie, to rival U.S. fund KKR.

Two sources told Reuters KKR has valued Telecom Italia's fixed network and submarine cable unit at 20 billion euros ($21.3 billion).

The beleaguered company, which has seen its earnings drop amid increased competition, is looking to sell assets in order to reduce debt and revitalize the business.

— Jenni Reid

Cybersecurity firm Darktrace hires EY to review financial processes

Cybersecurity firm Darktrace on Monday said it has appointed auditing firm EY to review its "key financial processes and controls," in a bid to soothe investor fears after a short seller accused the company of manipulating its accounts.

"The Board believes fully in the robustness of Darktrace's financial processes and controls. As a sign of that confidence, we have commissioned this independent third-party review by E&Y," Geoffrey Hurst, chair of the board, said in a statement. "We look forward to the outcome of this review."

EY will report to the chair of Darktrace's audit and risk committee, Paul Harrison, Darktrace said. 

Read the full story here.

— Ryan Browne

Ericsson to cut 1,400 jobs in Sweden

Mobile telecommunications gear producer Ericsson plans to eliminate 1,400 jobs in Sweden, in line with a previously announced cost-cutting strategy.

"Our intention is to handle the employee reductions through a voluntary program," a company spokesperson told CNBC in an emailed statement, adding that the company has finalized negotiations over headcount reductions with Swedish unions. "Managers will share how each unit is affected with their employees in the coming days."

The company employs 14,500 people across its research, development, sales, production and administration units.

"The cost savings cover various areas such as reduction of consultants, streamlining of processes, reduced facilities," the spokesperson said.

The layoffs come as Ericsson seeks to reduce costs by 9 billion Swedish krona ($869 million) by the end of this year, of which 70% are in costs of goods sold and 30% in selling, general and administrative expenses. It expects to see the benefits of this initiative starting from the second quarter, according to the company's fourth-quarter earnings presentation.

Tech titans such as Microsoft, Google and Amazon have announced a spate of substantive layoffs in recent weeks, as recessionary fears threaten to bite into consumer demand.

Ericsson shares were down 0.28% at 11 a.m. London time.

- Ruxandra Iordache

Euro zone construction rate fell in December; Germany down 8%

Production in the construction sector fell by 2.5% in the euro area and by 2% in the European Union month on month in December.

Figures published by Eurostat on Monday revealed the declines, which follow a 0.1% euro area fall and 0.1% EU increase in November.

Its country breakdown showed the biggest drop was in Germany, down 8% on the month, followed by Austria, down 7.6%, and Poland, down 3.8%.

Higher borrowing costs and continued input cost inflation have weighed on the sector even as overall forecasts for the euro zone economy have brightened, with many now predicting the bloc will avoid a recession.

— Jenni Reid

Fed will cut rates aggressively if it sees inflation drivers fall, boosting tech and bonds: Atomos

Haig Bathgate, head of investments at Atomos, says there is a big opportunity in growth stocks — but if you get it wrong, "you get cleaned out."

Two-thirds of Brits cutting back on non-essentials due to cost of living

More than two-thirds of U.K. adults are cutting their spending on non-essentials in light of cost pressures, figures published Monday showed.

A survey by the Office of National Statistics found 94% of people said their cost of living is higher than a year ago. When asked how they're responding to that, 69% said they're spending less on non-essential items and 60% are using less gas and electricity in their home.

The ONS said 55% of renters would be unable to afford an unexpected expense of £850 ($1,022), versus 12% of outright homeowners; while adults aged 25 to 34 are most likely to be experiencing a form of financial vulnerability, and 34% are borrowing more money or using more credit than a year ago.

The pace of U.K. inflation has been falling but remains above 10%.

— Jenni Reid

Likelihood of a recession in the U.S. this year is ‘very low,’ strategist says

Bob Parker, senior advisor at International Capital Markets Association, says he "wouldn't be at all surprised if we see progressively more and more upward revisions to U.S. growth."

Stocks on the move: Faurecia nudges higher, DS Smith lower

European stock movements were muted in early Monday trade.

French auto parts maker Faurecia was the top performer, gaining 4.7% after announcing on Sunday it would sell its SAS Cockpit Modules arm for 540 million euros ($577.5 million) in order to focus on its "core activities."

At the bottom of the Stoxx index, British packaging company DS Smith dipped 3.5%.

— Jenni Reid

European markets open higher

European markets were cautiously higher in early trade, with the Stoxx 600 trading up 0.25% and most sectors in the green.

Mining stocks climbed 1% and utilities were up 0.7%, while household goods slipped 0.3%.

France's CAC 40 and Germany's DAX made slight gains, while the FTSE was flat on the previous session.

— Jenni Reid

European markets set to open higher

European markets were on track for a higher open Monday, suggesting last week's bullish momentum is back on course.

The FTSE 100 was on track to open 26 points higher at 8,022 points, IG data showed, after closing above the 8,000 level for the first time on Thursday.

France's CAC 40 was seen up 29.5 points at 7,374, Italy's MIB up 62.5 points at 27,911.5 and Germany's DAX up 59 points at 15,535.9.

— Jenni Reid

Goldman names 2 global stocks to play the ‘clean hydrogen revolution,’ giving one 50% upside

The boom in clean hydrogen is picking up pace, according to investment bank Goldman Sachs.

"The clean hydrogen revolution continues to accelerate," analysts at the bank said in a Feb. 13 note. "We have reflected this in our hydrogen forecasts, almost tripling our base case scenario to 2030, vs. our initial estimates from last year (Feb 4, 2022)."

The bank pointed to a few factors driving clean hydrogen, including positive regulation gaining pace with the U.S. Inflation Reduction Act (IRA) at the forefront, and new initiatives to create a global seaborne market (hydrogen can be transported in liquid form by ships).

Pro subscribers can read more here.

— Weizhen Tan

Unsure about the market rally? Strategist picks 3 stocks to stay ‘defensively offensive’

Stock markets appear to have turned the tide after a dismal 2022.

But with the path of interest rate hikes still uncertain, and a potential recession still a possibility, market watchers are having a tough time deciding if this is another bear market rally or the start of a new bull market.

"There are basically two stories in the market today," Rahul Ghosh, portfolio specialist, equity division at T. Rowe Price, told CNBC's "Street Signs Asia" on Thursday.

"The optimistic [one] is the story of disinflation ... The slightly more negative [one] is the story of sticky inflation, which then has implications for either the path of rate hikes or the length of rates staying higher."

In this environment, Ghosh said investors should look to be "almost defensively offensive."

Pro subscribers can read more here.

— Zavier Ong

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