European markets open to close, data and earnings

UK labor market cooled slightly in the third quarter

The UK’s tight labor market cooled slightly in the third quarter as the economy went into contraction.

Unemployment came in at 3.6% in the three months to September, up from an almost five-decade low of 3.5% registered between June and August.

Data from the Office for National Statistics indicated that payroll employees grew by 74,000 in October to an all-time high of 29.8 million, although jobless claimant numbers rose slightly over the month.

Job vacancies declined for a fourth straight quarter, but remained at historically high levels, while pay growth increased, signaling persistent inflationary pressures.

Daniel Mahoney, UK economist at Handelsbanken, said the latest figures highlight that the UK labor market continues to pose a “headache” for policymakers.

“The growth in inactivity rates is an especially concerning problem given that it has been observed much more strongly in the UK compared to many of its G7 counterparts. This goes some way to explaining why the UK’s economic performance following the pandemic has been lackluster, with its GDP still below pre-crisis levels,” Mahoney said.

“Growth in inactivity has also been feeding inflationary pressures as it has contributed to employers all too often struggling to hire staff. As the UK heads into recession, the Bank of England now has a tricky balancing act between suppressing any signs of domestically-led inflationary pressures and ensuring that the downturn is not unnecessarily protracted.”

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– Elliot Smith

Stocks on the move: Teleperformance up 5%, Ambu down 11%

Shares of French call center companies Teleperformance climbed more than 5% to lead the Stoxx 600 after Citigroup upgraded the stock to “buy” from “neutral.”

At the bottom of the index, Danish health care equipment company Ambu plunged more than 11% after reporting a quarterly loss.

– Elliot Smith

Credit Suisse sells most of its securitized products business to Apollo as it speeds up restructuring

Credit Suisse on Tuesday announced that it would accelerate the restructuring of its investment bank by selling a significant portion of its securitized products group (SPG) to Apollo Global Management.

Credit Suisse said the transaction, along with the potential sale of other assets to third-party investors, is expected to reduce SPG assets from around $75 billion to $20 billion.

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The bank said the move represented an “important step towards a managed exit from the Securitized Products business, which is expected to significantly de-risk the investment bank and release capital to invest in Credit Suisse’s core business.”

Read the full story here.

– Elliot Smith

China’s industrial output, retail sales miss expectations in October

China’s industrial production grew 5% in the month of October compared with a year ago, slowing down from an increase of 6.3% seen in September. The latest figure misses estimates of a 5.2% rise predicted in a Reuters poll.

Separately, retail sales in China fell 0.5% in October from a year ago, missing expectations.

Analysts polled by Reuters expected a 1% increase, and retail sales grew 2.5% in September.

— Abigail Ng

CNBC Pro: China is easing its Covid measures. Here’s how market pros are playing it

Which stocks could benefit if China rolls back its zero-Covid policy? Market pros reveal how to play a reopening as China eases some of its virus controls.

For subscribers you can read more here.

— Zavier Ong

CNBC Pro: Top Morningstar strategist says stocks are undervalued by 15% and shares 6 favorites

With many stocks in a bear market, equities could be undervalued by 15%, according to Morningstar.

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The equity research firm’s chief US strategist believes that headwinds that were present earlier in the year will begin to recede at the beginning of next year and benefit stocks.

Dave Sekera also shared his “fair value” assessment on six companies with a “wide economic moat” that will outperform in such an economic environment.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets: Here are the opening calls

European markets are set to open in mixed territory on Tuesday.

The UK’s FTSE index is expected to open 14 points lower at 7,374, Germany’s DAX down 6 points at 14,312, France’s CAC up 10 points at 6,617 and Italy’s FTSE MIB down 19 points at 24,464, according to data from IG.

Global markets will be watching events at the Group of Twenty summit in Bali, Indonesia, which kicks off on Tuesday.

The IEA’s latest oil market report is set to be released, as are Infineon and Vodafone earnings.

— Holly Ellyatt

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