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European markets rise as investors await Fed minutes

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Swiss annual inflation at 2.8% in 2022

Swiss consumer prices increased by 2.8% year-on-year and fell by 0.2% in December, the Swiss Federal Statistical Office said today.

It found that Swiss inflation averaged 2.8% in 2022, up from 0.6% in 2021. It attributed the year-on-year increase to higher costs for petroleum products, gas, cars and house rentals, which offset the drop in prices of medicines and fixed and mobile communications.

Stocks Moving: BKW Up 4%, Tenaris Down 5%

swiss energy supplier BKW jumped 6% in early trade to top the Stoxx 600 after projecting an “excellent” full-year result in 2022.

Italian steel pipe manufacturer Tenaris fell 5% to the bottom of the European blue chip index.

– Elliot Smith

CNBC Pro: Analysts see these 10 global renewable energy stocks rising despite higher rates, with one offering a 50% rise

Rising energy costs have spurred investment in renewable energy around the world.

Swiss investment bank UBS has named 10 prominent renewable energy players capitalizing on the trend and is expected to outperform next year.

CNBC Pro subscribers can read more here.

—Ganesh Rao

CNBC Pro: Wall Street is bullish on this chip behemoth, with Morgan Stanley giving it a 55% lead

The once-hot chip industry has suffered in 2022, but Wall Street appears to be more bullish on semiconductor stocks next year.

Recently, several professionals have urged investors to take a long-term view of the industry, given the importance of chips in several key secular trends.

Analysts named one stock in particular they are bullish on, citing its earning potential and future profitability.

CNBC Pro subscribers can read more here.

— Weizhen Tan

US will avoid recession in 2023, says Goldman Sachs

Goldman Sachs has an out-of-consensus forecast for the US economy in 2023.

“Our economists continue to believe that the US will avoid a recession as the Fed was able to project a soft landing for the economy,” analysts wrote on Tuesday.

“This non-consensus forecast partly reflects our view that a period of below-potential growth is sufficient to gradually rebalance the labor market and dampen wage and price pressures,” the note said. “But it also reflects our analysis which indicates that the drag from fiscal and monetary tightening will ease sharply in the coming year, in contrast to the consensus view that the lagged effects of interest rate hikes will cause a recession in 2023.”

In addition, the bank today raised its Q4 2022 GDP growth forecast by 10 basis points to +2.1% due to a surprisingly strong construction spending launch in November.

“The disconnect between the resilience of the US economy in 2022 and the downturn suffered by equities has been a key narrative of the past year,” Goldman said. “And, if that disconnect continues, or if the economy matches the market drop, or if the market rebounds after an economic soft landing, it could be at least part of the 2023 narrative.”

—Carmen Reinicke

CNBC Pro looks at low volatility stocks amid fears of a rough ride ahead

Equity markets have suffered a terrible 2022, with major indexes posting their worst performances in over a decade.

As market professionals warn investors of tough times ahead, CNBC Pro used FactSet data to track low-volatility stocks that not only outperformed the market in 2022, but are also expected to rise even higher this year.

Professional subscribers can read more here.

— Zavier Ong

European markets: Here are the opening calls

European markets are heading for a higher open on Wednesday as traders await the latest minutes from the US Federal Reserve, looking for signs of more interest rates to come.

from UK FTSE 100 Index should open 11 points higher at 7,570, Germany’s index DAX 28 points more, with 14,227, the Frenchman CAC rose 9 points from 6,643 and Italy FTSE MIB rose 31 points at 24,449, according to IG data.

On Tuesday, markets in Europe closed higher, boosted after Germany published lower-than-expected inflation figures for December, falling to 9.6% year-on-year. France’s inflation figures are released on Wednesday.

— Holly Ellyatt

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