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Prices in October German well below expectations

Germany’s inflation came in at -4.2% month-on-month in October, the federal statistics office said on Monday, well below the Reuters consensus forecast for a 0.9% increase.

On an annual basis, inflation was up 34.5%, below expectations of 41.5%.

– Elliot Smith

Trading moves: Virgin Money up 13%, IDS down 5%

Free money shares jumped more than 13% to lead the Stoxx 600 in early trade after the company reported a rise in pretax profits for the 2022 fiscal year and announced a £50 million ($59.4 million) business plan.

Under the index, shares International distribution service – trading as Royal Mail – fell 5% as the company faces another wave of industrial action from workers over the holiday season.

Oil prices fall as China faces Covid concerns, Goldman Sachs cuts forecast

Oil prices fell by almost a dollar as Covid concerns rose in China and the country saw its first virus-related death recorded since May of this year.

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Brent crude futures shed less than a dollar, or 0.9%, to stand at $86.83 per barrel and US West Texas Intermediate Futures fell 1.09% to $79.21 per barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 per barrel for the fourth quarter of 2022, citing China’s increasing demand and Covid concerns as a surprise and detailed information from the national price index 7 new in Russian oil.

“We believe that the market has the potential to worry about the key going forward,” economists including Jeffrey Currie said in the note, adding the possibility of another lockdown in China is the new production of OPEC + reduced.

— See Ying Shan

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, ‘overvalued’

This year’s 30% decline in the value of China’s Big Tech products, such as Alibabahave made them “extremely cheap,” according to Chinese Renaissance bank.

Its head of equities, Andrew Maynard, not only believes that the stock market seems to be at the bottom, but also that investors can lose in a rally if they remain inadequate in China.

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“Without a shadow of a doubt, China’s heaviness will cost you going forward,” Maynard said.

CNBC Pro subscribers can read more here.

— Ganesh Rao

The market is watching for more details on Fed hikes in the economy next week

Investors may be cautious next week, with stocks looking for guidance in quiet trading and bond markets warning of a worsening recession.

Thanksgiving on Thursday should mean the market will be quiet Wednesday and Friday. Retailers will monitor the news on Black Friday holiday shopping for feedback from customers.

“It’s definitely a week where data backup is the main issue,” said Julian Emanuel, managing director at Evercore ISI. “What a tragedy [for stocks] is high unless the data continues to worsen and the Fed continues to hike…which has clearly strengthened in the last 48 hours.”

Check out our full dive into what to expect next week here.

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– Patti Domm, Tana Machel

CNBC Pro: Morgan Stanley’s Mike Wilson predicts S&P 500 bottom, calls it ‘tremendous buying opportunity’

Morgan Stanley’s Chief US Equity Strategist Mike Wilson says we are in the “last phase” of the bear market, but the situation will remain challenging for some time.

It predicts when — and at what level — the S&P 500 will hit “new lows.”

CNBC Pro subscribers can read more here.

– Weizhen Tan

European Market: This is an introductory call

European markets will open lower on Monday as investors continue to assess the uncertain economic outlook.

The UK’s FTSE is expected to open 15 points lower at 7,386, Germany’s DAX is down 54 points at 14,378, France’s CAC is down 17 points at 6,629 and Italy’s FTSE MIB is down 54 points at 24,445, according to data from IG .

No big deal on Monday. The data release includes German producer prices for October.

– Holly Elliott

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