stocks, news, data and earnings

European planemaker Airbus said on Tuesday it is sending a team of specialists to provide technical assistance to French and Japanese authorities as they investigate a collision involving one of its A350 planes at Tokyo’s Haneda airport.

The aircraft involved in the collision was delivered to Japan Airlines from the production line in Nov. 2021 and was powered by Rolls-Royce Trent XWB engines, Airbus said.

“Our concerns and sympathy go to the families, friends and loved ones affected by the accident,” Airbus said.

Shares of Airbus were up 0.8% during afternoon deals.

— Sam Meredith

Danish shipping giant Maersk topped European Stoxx 600 gains in mid-afternoon trade, rising 5.6%.

The company announced Sunday it would suspend all sailing through the Red Sea for 48 hours due to the ongoing threat of Houthi attacks, and is due to provide an update Tuesday. Disruption in the region has driven ocean freight rates sharply higher.

Diversification is the key to harnessing opportunities in the market in the year ahead. That’s according to Lindsay James, investment strategist from Quilter Investors, who believes spreading assets across indices and sectors is the most tactical play right now.

The euro declined Tuesday morning, trading 0.69% lower against the U.S. dollar at $1.096 at 11:55 a.m. London time.

The euro was down 0.15% against the British pound at 0.866.

Investors are assessing another set of gloomy manufacturing data from the euro zone, and looking ahead to a slew of inflation data from France, Spain, Italy and Germany later this week, along with U.S. job openings and nonfarm payrolls.

The U.S. dollar index was 0.61% higher, extending cautious gains from late 2023 with all eyes on whether the Federal Reserve will deliver on market expectations for rate cuts this year.

Bitcoin traded above $45,000 for the first time since April 2022 to start the year, adding to the digital currency’s sharp gains over the past 12 months. Bitcoin was last at $45,605, up 4.3% on the day, according to Coin Metrics. Over the past year, its up more than 170%.

The downturn in euro zone factory activity continued in December, according to S&P Global and Hamburg Commercial Bank’s purchasing managers’ index, as figures suggested a recession in the third quarter of 2023.

The manufacturing PMI reading for the bloc came in at 44.4, the best for seven months, but still well below the 50 mark separating expansion from contraction.

Output and job losses remained bleak, though new orders, purchasing activity and business confidence showed some signs of light on the horizon.

“Amid a relentless slump in the manufacturing sector of the Eurozone, the HCOB PMI has shown little improvement compared to November,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

“This indicates a sustained decline in both activity and demand for manufactured goods. The sluggishness of new orders echoes the gloom, retreating almost as swiftly as the previous month.”

“Our Nowcast model aligns with this pessimistic trend, strongly suggesting a contraction in GDP for the fourth quarter. If this holds true, it paints a bleak picture for the Eurozone and would mean that the Eurozone entered a recession in the third quarter,” he added.

— Jenni Reid

European stock markets opened higher Tuesday.

The benchmark Stoxx 600 index was up 0.43% at 8:05 a.m. London time, while most sectors moved higher. Oil and gas led gains, up 1.3%, as technology stocks slipped 0.2%.

Germany’s DAX and France’s CAC 40 both charged around 0.5% higher, while the U.K.’s FTSE 100 was up 0.25%.

Inflation in U.K. food prices eased to 6.7% in December from 7.7% the previous month, figures compiled by the British Retail Consortium showed.

It brings price rises to the lowest level since June 2022.

Overall shop price inflation was unchanged at 4.3%.

“Retailers will continue to do all they can to keep prices down in 2024, but there are obstacles on the road ahead. New border checks for EU imports, hundreds of millions more on business rates bills from April,” Helen Dickinson, chief executive of the British Retail Consortium, said.

— Jenni Reid

A private survey showed manufacturing activity in China expanded in December, at odds with a similar survey conducted by the country’s statistics bureau that reported a contraction.

The Caixin manufacturing purchasing managers’ index came in at 50.8 in December, according to a release Tuesday, following a 50.7 reading for November. China’s official PMI fell to 49.0 in December from 49.4 the previous month, the country’s National Bureau of Statistics said in a Sunday release.

A PMI reading above 50 indicates expansion in activity, while a reading below that level points to a contraction.

— Clement Tan

Energy stocks may have had a tough year, but Goldman Sachs sees promise in European Big Oil – naming integrated oil stocks to play the theme in the new year.

“We are currently at a turning point as EU Big Oils started to outperform U.S. Big Oils, to potentially close their 40% valuation gap against their U.S. peers,” the investment bank’s analysts said.

The investment bank’s positive outlook on Big Oil comes even oil prices were pushed up as major shipping lines and oil transporters suspended travel through the Red Sea. The 2024 outlook for oil has also been underwhelming, with the International Energy Agency expecting the slowdown to continue next year.

Even so, Goldman noted that “EU Big Oils now screen as attractive thanks to enhanced buyback programs, leading to double digit cash returns to shareholders,” naming its top picks to play.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

The Dutch government has partially revoked semiconductor equipment maker ASML‘s export license to China for two of its systems used in manufacturing advanced chips.

“A license for the shipment of NXT:2050i and NXT:2100i lithography systems in 2023 has recently been partially revoked by the Dutch government, impacting a small number of customers in China,” said ASML in a statement.

NXT:2050i and NXT:2100i are deep ultraviolet lithography machines used in the volume production of the most advanced logic and memory chips.

The company said it does not expect the move to have a material impact on its financial outlook for 2023.

ASML has been restricted by the Dutch government from exporting its extreme ultraviolet lithography machines to China, in a bid to contain China’s chip making tech. ASML has not shipped the equipment to China so far.

— Sheila Chiang

From family offices to financial advisors and beyond, interest in alternative assets appears to be growing — but the pros appear mixed on whether retail investors should get invested.

For Caesar Sengupta, CEO of financial services firm Arta Finance, there is “incredible value in private markets” and the assets shouldn’t be overlooked.

Elsewhere, Saxo’s chief investment officer Steen Jakobsen argues that retail investors need to err on the side of caution when dabbling in alternatives.

“I think you need to be more than a private retail investor to go into these — my advice is don’t buy it, even if it’s priced to perfection,” he said, adding what asset classes he is bullish on for 2024.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets are set to open higher Tuesday as investors kick off trading in 2024.

The U.K.’s FTSE 100 index is expected to open 20 points higher at 7,742, Germany’s DAX up 48 points at 16,799 and France’s CAC up 27 points at 7,570, according to data from IG. 

There are no major data releases Tuesday.

— Holly Ellyatt