Oil prices rise amid news that Iran is preparing to strike Israel
Oil prices rose on Friday morning, extending gains amid reports that Iran is preparing to launch a retaliatory strike against Israel in the coming days.
International benchmark Brent crude futures expiring in January rose 2.5% to $74.64 a barrel, while U.S. West Texas Intermediate crude futures expiring in December rose 2.7% to $71.14.
-Sam Meredith
Hargreaves-Lansdowne says risk premiums are returning to the UK after the historic budget
Rachel Reeves, British Chancellor of the Exchequer, outside 11 Downing Street before presenting her budget to Parliament in London, United Kingdom, on Wednesday, October 30, 2024.
Bloomberg | Bloomberg | Getty Images
The high risk premium for UK debt has returned following the historic budget presented by the UK Labor government, according to Susanna Streeter, head of money and markets at Hargreaves Lansdowne.
British bond yields rose sharply on Thursday, extending gains from the previous session when Finance Minister Rachel Reeves unveiled a sweeping package of tax rises and increased borrowing.
“I think what has happened is that there has been a much deeper dive into government finances and those forecasts from the Office for Budget Responsibility, which suggest that not only will growth be lower than previously forecast over a four-year period, but inflation will also rise.” “It's likely to go up because of all this extra spending,” Streeter told CNBC's “Squawk Box Europe” on Friday.
Streeter said Thursday's rise in government bond yields was not solely due to investor concerns about budget inflation.
“It's also this concern about where all that extra investment spending is going to go and how responsible the government is in using that money. So, the risk premium has, to some extent, come back to the UK,” Streeter said.
“It's not like we saw with the Trussonomics mini-budget when that spike was really high after those unfunded tax cuts came out,” she continued.
“It's just this extra weariness of, you know, this is a big tax, this is a big spending budget (so) is the government going to use wisdom in executing its strategy? And I think that's what bond investors want to see.”
-Sam Meredith
Maersk shares rise 5%
Shares of the Danish shipping giant Maersk It rose more than 5% on Friday after Barclays and JPMorgan raised their price targets on the stock.
The company was among the best performers on the Stoxx 600 index during early morning trades.
-Sam Meredith
Reckitt Benckiser shares jump 10%
Shares of UK-based consumer goods company Reckitt Benckiser rose more than 10% on Friday shortly after the company was cleared of liability in the early formula case.
The stock, which has fallen more than 14% year to date, jumped to the top of the European index after this news.
-Sam Meredith
European markets open slightly higher
European markets opened slightly higher on Friday.
The European Stoxx 600 rose about 0.1% shortly after the opening bell, with sectors pointing in opposite directions.
-Sam Meredith
Annual growth in UK house prices slowed in October
A passerby looks at residential properties for sale in the window of an estate agent in Windsor, west London.
Justin Tallis | AFP | Getty Images
UK house prices rose 2.4% year-on-year in October, reflecting a weaker increase than September's 3.2% growth, mortgage bank Nationwide said on Friday.
The building society said house prices rose 0.1% month-on-month in October, down from a 0.6% increase the previous month.
“Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching levels seen before the pandemic, despite a significantly higher interest rate environment,” Robert Gardner, chief economist at Nationwide, said in a statement.
“Strong labor market conditions, with low unemployment levels and strong income gains, even after taking inflation into account, have helped support a steady rise in activity and house prices since the start of the year,” he added.
-Sam Meredith
US jobs data is “absolutely key” to the Fed's decision-making process, the Fed's chief investment officer says
A job seeker holds flyers during the New York Public Library's annual Bronx Fair and Exhibition at the Bronx Library Center in the Bronx borough of New York, United States, on Friday, September 6, 2024.
Yuki Iwamura | Bloomberg | Getty Images
The release of US jobs data on Friday is “absolutely key” to the Federal Reserve's decision-making ahead of the central bank's meeting next week, according to Isabel Albaran, chief investment officer at Close Brothers Asset Management.
Speaking on CNBC's “Squawk Box Europe” on Friday, Albarran said it is “very difficult” to provide a justification for another large 50 basis point interest rate cut when Fed policymakers meet on November 6-7.
“Labor market data remains very key to the Fed’s decision making,” Albaran said.
“I think the great news was that initial unemployment claims were much stronger than people expected given the size of the storm season, but as I mentioned, we did go on strike, so this may be a little bit of a strike,” she added, referring to Hurricanes Helen and Milton and the attack on Boeing.
“I think the Fed will be relatively optimistic about that given how resilient we've seen in the broader economic data coming out of the U.S.,” Albaran said.
-Sam Meredith
CNBC Pro: Wealth manager for the wealthy names 3 stocks to buy before the end of the year
Stock markets have rallied this year, as investors remain bullish on big technology companies, but also snap up shares in secretive companies.
CNBC Pro caught up with Kevin Teng, CEO of Wrise Private Singapore, for his take on the stocks he favored at the beginning of the year, as well as the names he's betting on before the year ends.
The wealth manager – whose firm serves high-net-worth individuals across Asia, the Middle East and Europe – revealed his three stock picks, including two under-the-radar names.
CNBC Pro subscribers can read more here about the three stocks he's betting on now.
– Amala Balakrishner
European Markets: Below are the opening calls
European markets are expected to open mixed on Friday.
The UK's FTSE 100 is expected to open 8 points higher at 8,113, Germany's DAX is expected to open 6 points higher at 19,060, France's CAC is up 8 points at 7,342, and Italy's FTSE MIB is down 22 points at 34,008, according to For data from IG.
It comes shortly after European stocks closed lower on Thursday, ending October with their biggest loss in a year, as investors weighed a wave of corporate earnings, inflation data and the UK's historic budget.
-Sam Meredith
