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European markets open to closing, BOE and SNB tariff decisions

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Swiss franc weakens dramatically against dollar, euro and pound sterling after rate hike

The Swiss franc weakened dramatically against the US dollar, euro and pound sterling after the central bank’s decision to raise interest rates by 75 basis points to 0.5%.

At 9:30 a.m. London time, the dollar was up 0.9% against the Swiss currency, while the euro and pound sterling were both up about 1.4% against the franc.

Earlier this week, the Swiss franc hit its highest level against the euro since January 2015, as economists began speculating about the prospect of a 75 basis point gain.

— Hannah Ward-Glenton

Norwegian central bank raises interest to 2.25%

The Norwegian central bank raised its interest rate from 1.75% to 2.25% and said it plans to raise interest rates further later this year.

There are “clear signs of a cooling economy,” Norges Bank said in a statement, and “easing pressures in the economy will help curb inflation further afield.”

Based on the current assessment of the Monetary Policy Committee, the bank believes that the key rate will most likely be raised further in November.

— Hannah Ward-Glenton

Swiss National Bank raises interest rate to 0.5%

The Swiss National Bank raised its benchmark interest rate until 0.5%, a shift that will end an era of negative interest rates in Europe.

The 75 basis point increase follows a increase to -0.25% on June 16, which was the first rate hike in 15 years. Before that, the Swiss central bank kept interest rates stable at -0.75% since 2015.

Inflation in Switzerland is currently at its highest level in three decades, reaching 3.5% last month.

— Hannah Ward-Glenton

Italy goes to the polls on Sunday, here’s what to expect

Italian voters head to the polls on Sunday for a quick general election, likely to see a government led by a far-right party come to power.

If that happens, it will represent a huge political shift for a country already experiencing ongoing economic and political instability.

Polls before September 9 (when a blackout period began) showed that a right-wing coalition easily won a majority of seats in the slimmed-down House of Representatives and Senate.

Atmosphere during Giorgia Meloni’s meeting in Cagliari to launch her campaign for Italy’s next general election in Cagliari on September 2, 2022 in Cagliari, Italy. Italians go to the polls for the general election on September 25, 2022.

Emanuele Platform | Getty Images News | Getty Images

The coalition is led by Giorgia Meloni’s far-right Fratelli d’Italia (Brothers of Italy), and includes three other right-wing parties: Lega, under Matteo Salvini, Silvio Berlusconi’s Forza Italia and a minor coalition partner, Noi Moderati.

The Brothers of Italy party stands out from the crowd and is expected to get the majority of the vote for one party. It gets almost 25% of the vote, according to poll aggregator Politiche 2022well ahead of its closest right-wing ally Lega, which is expected to get about 12% of the vote.

Read more about the upcoming elections here

— Holly Ellyatt

Market open: Fortum up 4%, Accor down 6%

Shares of Fortune rose again in early trading Thursday after Finnish company agreed to sell its 56% stake in the German utility company Uniper to the German government. The state energy company shifted its stake in a nationalization deal.

French catering company Accor saw its shares fall 6.3% at market opening after JP Morgan downgraded its rating on the stock from neutral to underweight. The investment bank expressed concern that the group would not be able to return to its previous level of profitability, saying that “our concerns now outweigh the reasons we like.”

— Hannah Ward-Glenton

Credit Suisse plans to split its investment bank into three: the FT

Credit Suisse has plans to split his investment bank in three, according to the Financial Times.

Swiss lender wants to have a separate “bad bank” exclusively for risky assets if it recovers from several years of scandals and blunders.

New proposals suggest Credit Suisse will sell some of its profitable units as part of the radical reshuffle, and full plans are expected to be announced with the bank’s third-quarter results on Oct. 27, the FT reported.

— Hannah Ward-Glenton

Oil prices rise after Fed rate hikes, demand fears persist

Oil prices rose after the Fed’s third consecutive rate hike.

Reuters too reported Chinese refineries expect the country to release up to 15 million tons of export quotas for oil products for the rest of the year, citing those in the know.

Brent crude futures rose 0.45% to $90.24 a barrel, while American West Texas Intermediate also gained 0.45% to $83.3 a barrel.

— Lee Ying Shan

Fed hike likely keeps Asian risk assets under pressure, says JPMorgan

Asian risk assets, especially export-oriented companies, will remain under pressure in the near term following the Fed rate hike, said Tai Hui, chief APAC market strategist at JPMorgan Asset Management.

Tai added that a strong US dollar is likely to continue, but monetary policy tightening at most Asian central banks – with the exception of China and Japan – should help limit the magnitude of the Asian currency’s depreciation.

The US dollar indexwhich follows the greenback against a basket of its counterparts, strengthened sharply, last standing at 111,697.

— Abigail Ng

CNBC Pro: This fund manager is beating the market. This is what he bets on

Better performing fund manager mentions his short positions

Stock markets have fallen, but the fund managed by Patrick Armstrong at Plurimi Wealth continues to deliver positive returns. The fund manager has a number of short positions to capitalize on market volatility.

Pro subscribers can read more here.

— Zavier Ongo

CNBC Pro: Morgan Stanley’s Mike Wilson Names The Main Trait He Likes In Stocks

Morgan Stanley’s Mike Wilson remains defensive amid ongoing market volatility this year. He mentions the main characteristic he looks for in stocks.

Stocks with this trait have been “rewarded” this year, and Wilson says the trend is likely to continue until the market turns bullish.

Pro subscribers can read more here.

— Zavier Ongo

European markets: these are the opening calls

European equities are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.

The UK’s FTSE index is expected to open 47 points lower at 7,341, Germany’s DAX 86 points lower at 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB 132 points lower at 22,010, according to data from IG.

Global markets have retreated after higher-than-expected US Consumer Price Index report for August showing prices rose 0.1% for the month and 8.3% a year in August, the Bureau of Labor Statistics reported Tuesday, defying economists’ expectations that headline inflation would rise 0.1%. would decrease month-on-month.

The core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK inflation figures for August are expected and Eurozone industrial production for July will be released.

— Holly Ellyatt

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