Porsche up almost 3%
Porsche shares rose almost 3% in early trade Monday after German carmaker Volkswagen said it was aiming for a valuation of up to 75 billion euros for the luxury brand when it is floated on the stock market.
Porsche was last seen trading up 2.5% while Volkswagen was slightly above the flatline.
— Karen Gilchrist
European markets open in the red
European markets opened well into the red Monday. Here’s where stocks were after 15 minutes of trading:
France’s CAC down 0.94%
Germany’s DAX down 0.58%
Italy’s FTSE MIB down 0.92%
Spain’s IBEX down 0.4%
— Katrina Bishop
Treasury yields tick higher
Treasury yields ticked higher early Monday.
The yield on the 2-year Treasury bond rose 1 basis point to trade at 3.8713% at 2:45 a.m. ET. It comes after the yield last week climbed above 3.9% — a level last seen in November 2007.
The yield on the 10-year Treasury, meanwhile, was less than a basis point higher at 3.4554%. Yields move opposite to prices. One basis point is equivalent to 0.01%.
Read more here.
— Katrina Bishop
European stocks slid last week
The pan-European Stoxx 600 slipped 2.89% last week:
UK stock markets closed as country marks Queen Elizabeth’s death
In a release last week, the London Stock Exchange Group said it was “deeply saddened at the passing of Her Majesty Queen Elizabeth II.”
“The day of the funeral of Her Majesty Queen Elizabeth II, 19 September 2022, has been declared a UK bank holiday, therefore, London Stock Exchange (the “Exchange”) on Exchange markets will be closed,” it added.
— Katrina Bishop
CNBC Pro: Buy these inflation-beating funds to protect your money, strategist says
As inflation remains stubbornly high, where can investors hide out given that U.S. stocks and bonds alike have been volatile?
There are three types of funds that look appealing right now, according to Mark Jolley, global strategist at CCB International Securities. He named his favorites in each category.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Oil prices climb as lifting of Chinese Covid lockdown boosts demand outlook
Oil prices climbed on Monday as the Chinese megacity of Chengdu exits a two-week lockdown.
Both oil benchmarks each rose more than 1% earlier in the session, and Brent crude futures was last up 0.66% at $91.95 per barrel. U.S. West Texas Intermediate gained 0.56% $85.59 per barrel.
The boost in demand outlook offsets fears that potential rate hikes later this week will raise recession risks.
— Lee Ying Shan
CNBC Pro: This ETF carries risk — but outperforms when volatility spikes
As volatility rears its head once again, investors looking for a short-term trade could opt for this ETF with a track record of outperformance in times of extreme market moves.
“It is probably the prospect of very quick and sizable gains when everyone else in the market seems to be losing their shirts that I believe is appealing about this fund,” Daniel Martins, head researcher and portfolio strategist at DM Martins Research, said.
Yet, despite the potential for high returns, the ETF carries a high level of risk, and is not for every investor.
Pro subscribers can read more here.
— Zavier Ong
Stocks could fall below 3,700 before the next rally, says Fundstrat’s Newton
Mark Newton, head of technical analysis at Fundstrat, said investors shouldn’t get too tempted by a potential bounce in the coming days as the S&P 500 could fall under 3,700 before a more meaningful rally kicks in.
“September’s Triple Witching Friday close at multi-week lows is particularly negative for the prospects of a rally, and further selling still looks likely over the next couple weeks to undercut 3,700 before a relief rally can get underway in October,” he said.
The S&P 500 on Friday ended the week at 3,873.33.
“While one cannot rule out a 1-2 day bounce attempt given this week’s decline, I do not expect much strength until prices have reached support under 3,700 in October,” he added. “Tactically, ‘cash remains king’ and one should be patient until markets reach downside targets, and begin to show either volume and breadth divergences, or capitulation to buy.”
— Tanaya Macheel