Stocks, news, inflation and GDP data

European mining stocks led gains on Friday, rising 0.8% at around 12:05pm London time.

Mining giant Anglo American It was last seen higher by about 3%, while Antofagasta and Glencore Both traded up about 1%.

-Sam Meredith

European stock markets have strong momentum behind them going into next year despite recent weakness, according to Michael Field, equity market strategist at Morningstar.

“The fact that we're getting all this negative news from the United States about tariffs and other upcoming measures gives people pause for thought,” Field told CNBC's “Squawk Box Europe.”

On whether there is an opportunity in European stocks given their discount against those in the United States, Field said: “Ultimately, if you look at the American markets, they are growing at a faster pace. There is a reason that (the price-to-earnings ratio) is low.” Up there, that reflects the growth profile.”

“But at the same time… if you look at the European macroeconomic trajectory, things are going very well for us at the moment. GDP is improving, inflation is falling, and interest rates appear to be falling as well.” “.

“So we do have these good winds behind the European markets that we should probably take into account.”

Eurozone inflation data for November came in at 2.3% on Friday, in line with expectations and above the European Central Bank's target of 2%.

This reading is seen as likely to strengthen the case for the ECB taking a more cautious approach at its December meeting.

Melanie Debono, chief European economist at Pantheon Macroeconomics, said: “Today’s data combined with the increase in negotiated wage growth in the third quarter, record low unemployment numbers and decent money and credit data, suggest to us that the ECB will stick to a gradual pace of easing.” he said in a research note.

“We think the central bank will cut by 25 basis points in December, but it is a close step.”

Debono said the main reason the ECB committed to a quarter-point rate cut on December 12 was that the central bank's January meeting would follow relatively quickly.

“We now expect a 25 basis point cut at that meeting as well, so we now see the ECB cutting interest rates to 2.25% next year, after cutting it in January by cutting 25 basis points at each of its meetings in March and June,” Debono said.

Separately, ING's Bert Cullen said headline inflation in the euro zone looked set to rise again in December, before easing early next year.

“With demand expected to remain weak, it does not appear that the ECB should be overly concerned about the current rise in inflation,” Cullen said in a research note.

-Sam Meredith

Eurozone inflation rose from 2% in October to 2.3% in November, above the European Central Bank's target of 2%, preliminary data from statistics agency Eurostat showed on Friday.

Economists polled by Reuters had expected a reading of 2.3% for headline inflation in November.

-Sam Meredith

Fabio Balboni, chief European economist at HSBC, told CNBC's “Squawk Box Europe” on Monday that the ECB will likely discuss a 50 basis point rate cut when it meets in December, but will then implement a 25-point cut. basis. discount.

The ECB is next scheduled to meet on December 12, with markets broadly pricing in a 25 basis point cut to be announced at that time.

“I think we have to remember that this is the European Central Bank, so it always moves very, very slowly,” Balboni said, explaining that at the last ECB meeting, the 25 basis point cut that had been announced became an option only days before. The meeting.

Balboni noted that ECB President Christine Lagarde in particular was seeking consensus, and to achieve that “you often have to move a little slower” than other central banks.

“I think in the December meeting, yes there will be some discussions about a 50 basis point cut, but in the end they will settle on a 25 basis point cut,” he added, adding that there may be some guidance. On more aggressive interest rate cuts next year depending on economic growth data.

-Sophie Kiderlein

Shares of British mining giant Anglo American rose about 3% on Friday after Jefferies raised its stock rating to buy from hold.

The company's stock price is up about 25% year to date.

European markets opened slightly lower on Friday.

Pan-European Stokes 600 The index fell 0.2% shortly after the opening bell, with most sectors in negative territory.

-Sam Meredith

France's harmonized inflation rate was 1.7% in November, up slightly from 1.6% in October, according to preliminary data from the National Institute of Statistics and Economic Studies (Insee).

The November reading was in line with expectations of economists surveyed by The Wall Street Journal, and still below the European Central Bank's target of 2%.

The Harmonized Index of Consumer Prices (HICP) has been adjusted for comparison with other euro area countries.

Fast Eurozone inflation data for November is expected later in the session.

-Sam Meredith

British insurance company Aviva has contacted shareholders Direct lineThe Financial Times reported on Thursday, citing people familiar with the move. This approach could pave the way for a hostile takeover attempt.

Aviva declined to comment on the report.

It comes shortly after Direct Line rejected Aviva's cash and stock offer as “too opportunistic” and said the proposal “significantly undervalues ​​the company”. Aviva said it made an offer to its smaller rival on November 19.

Direct Line shares rose 41% in the previous session, hitting their highest level since 2023.

-Sam Meredith

As investors prepare their portfolios for 2025, Wall Street's top investors have identified several European companies that they believe offer significant growth potential despite market uncertainty.

Morgan Stanley downgraded European stocks to neutral earlier this year. However, they point out that “Europe is a stock picking market” now since stocks on the continent have started to diverge from each other in terms of performance.

Meanwhile, Bernstein's top 10 picks have outperformed the MSCI Europe Small Index by 5 percentage points since the end of October.

CNBC Pro subscribers can read more here.

-Ganesh Rao

As Europe faces the prospect of tariffs on its exports to the US, TS Lombard has advised investors in the region on how to “tariff hedge” their portfolios.

In a note this week, Davide Oniglia, director of European and global macroeconomics at TS Lombard, advised European investors to address “tariff risks” by viewing their exposure “the way Donald Trump does… the US dollar value of the goods deficit/surplus By country and sector.”

He suggested three main ways in which investors can protect their investment portfolios.

Pro subscribers can read more here.

– Holly Eliatt

European markets are expected to open mixed on Friday.

The UK's FTSE 100 is expected to open 7 points higher at 8,285, Germany's DAX is down 13 points at 19,408, France's CAC is down 5 points at 7,173, and Italy's FTSE MIB is down 48 points at 33,261, according to IG data.

Market participants will closely monitor Eurozone preliminary inflation data for November, as well as preliminary inflation readings in France and Italy.

-Sam Meredith