European markets close lower as global sentiment falters on recession fears

The slowdown in private equity transactions is expected to continue in the first quarter of 2023, according to a trust fund manager at Abrn.

Alan Gauld, trust fund manager of private equity opportunities at Abrn, discussed the company’s 2023 outlook for private equity on “Squawk Box Europe”.

Airbus shares fell 2.6% after the company dropped its forecast for 2022 aircraft deliveries and adjusted its production ramp-up plans.

The aircraft maker said its target of “about 700” deliveries in 2022 was out of reach, but it does not expect to be “significantly below” forecasts.

Airbus blamed supply chain disruptions for the delivery shortfall.

—Hannah Ward-Glenton

Healthcare stocks continued to buck the negative trend in early afternoon trading, adding 0.5% with all other sectors in the red or flat.

The Stoxx 600 index was dominated by drugmakers GSK (+7.7%), Individual (+5.8%), Sanofi (+5.7%) and Haleon (+3.9%), after a US judge dismissed thousands of lawsuits claiming the heartburn drug Zantac caused cancer.

The potential $1 billion payout wiped nearly $40 billion off the market value of GSK, Sanofi, Pfizer and Haleon in about a week in August, Reuters reported.

—Jenni Reid

Stéphane Renevier, an analyst at Finimize, speaks on CNBC’s “Squawk Box Europe”.

Eurozone GDP rose 0.3% in the third quarter for an annual rise of 2.3%, Eurostat said on Wednesday, an upward revision from previous flash estimates of 0.2% and 2, 1% published mid-November.

Household spending and gross fixed capital formation made the largest contributions to growth, while geographically the best performer was Ireland, which grew by 2.3%.

-Elliot Smith

Shares of GSK and Sanofi were up 11% and 6%, respectively, on Wednesday morning after a US court dismissed thousands of lawsuits claiming the heartburn drug Zantac caused cancer.

At the bottom of the Stoxx 600, Swedish real estate company SBB fell 5%.

-Elliot Smith

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

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

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

U.S. consumers are still doing well and supporting the U.S. economy, but that could change next year, according to 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 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