European markets head for a mixed open as global sentiment falters

European markets head for a mixed open as global sentiment falters

This is CNBC’s live blog covering European markets.

European stocks head for a mixed open on Wednesday as nervousness sets in over the state of the global economy.

Sentiment was mixed overnight, with stocks in the Asia-Pacific region trading in mixed territory, weighed down by major U.S. indexes that fell more than 1% on Tuesday as recession worries grow.

CEO of JPMorgan Chase Jamie Dimon told CNBC on Tuesday that U.S. consumers are still supporting the U.S. economy with consumer spending, but that could change in 2023.

Consumers have $1.5 trillion in excess savings from pandemic stimulus programs and are spending 10% more than in 2021, he said on CNBC’s “Squawk Box” on Tuesday.

“Inflation is eroding everything I just said, and that trillion and a half dollars will run out by the middle of next year,” Dimon said. “When you look ahead, these things may very well derail the economy and cause a mild or severe recession that people are worried about.”

China’s reopening is a bigger driver for oil prices than Russia’s crude cap, Singapore official says

China’s reopening will be a bigger driver for oil prices than Russia’s oil cap, Singapore’s Foreign Minister Vivian Balakrishnan told CNBC on Tuesday.

“I would expect to see a significant opening,” Balakrishnan said. “Now this has profound implications for the global economy, more than an oil price cap.”

China’s medium-to-long-term playbook should therefore focus on improving vaccination rates, Balakrishnan said.

“You can open up if you have high vaccination rates, so I would be watching China’s efforts to speed up vaccination of the elderly,” he added.

Read the full story here.

— Charmaine Jacob

CNBC Pro: UBS says shares of this global airline are set to soar 55%

Shares of a global airline are expected to soar 55% over the next year, according to UBS.

The investment bank raised its price target after the pan-European airline said it expects to see bumper demand come Christmas.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

CNBC Pro: ‘A gift to investors’: BlackRock says it’s time to rethink bonds

It’s time to rethink bonds, according to the BlackRock Investment Institute, which said “the appeal of fixed income is strong” right now.

“Higher returns are a gift for investors who have long been hungry for income. And investors don’t have to go far up the risk spectrum to benefit,” said Philipp Hildebrand, Vice Chairman of BlackRock, and Jean Boivin, director of BlackRock. Investment Institute, wrote in a note last week.

They described their best ways to cash out.

Pro subscribers can learn more here.

— Zavier Ong

Inflation is eroding consumer wealth and could lead to a recession in 2023, Dimon says

Al-Draco | Bloomberg | Getty Images

Dimon said in June that he was preparing the bank for an economic “hurricane” caused by the Federal Reserve and Russia’s war in Ukraine.

U.S. consumers are still doing well and supporting the U.S. economy, but that could change next year, says JPMorgan Chase CEO Jamie Dimon.

Consumers have $1.5 trillion in excess savings from pandemic stimulus programs and are spending 10% more than in 2021, he said on CNBC’s “Squawk Box” on Tuesday.

“Inflation is eroding everything I just said, and that trillion and a half dollars will run out by the middle of next year,” Dimon said. “When you look ahead, these things may very well derail the economy and cause a mild or severe recession that people are worried about.”

Dimon also offered his thoughts on cryptocurrencies, the need for fossil fuels, and other topics during the wide-ranging interview.

—Hugh Son

European markets: here are the opening calls

European markets are heading for a lower open on Tuesday as global sentiment is generally pessimistic this week.

Britain’s FTSE index is expected to open down 7 points to 7,549, Germany’s DAX down 24 points to 14,423, France’s CAC down 18 points to 6,678 and Italy’s FTSE MIB down 47 points to 24,574, according to IG data.

Data releases include Germany’s industrial orders for October. There are no significant gains.

—Holly Ellyatt

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