European markets open and close, Bank of England and Swiss National Bank rate decision

U.S. stocks open mixed

U.S. stocks opened mixed on Thursday after the Federal Reserve decided on Wednesday to raise interest rates by 0.75 percent for the third time in a row.

The Dow Jones Industrial Average and S&P 500 hovered near flat lines in early trading, while the Nasdaq lost 0.2%.

— Karen Gilchrist

Bank of England raises interest rates by 50 basis points for seventh straight time

The Bank of England voted to raise interest rates by 50 basis points, below the 75 basis points expected by some analysts.

The bank said there had been further signs of “continued strengthening in domestic inflation” since August, but the recently announced caps on energy bills for households and businesses would reduce future consumer price increases.

Sterling edged up around $1.13 on the day.

–Jenny Reed

UK regulator probes cloud market

Ofcom, the UK media regulator, said on Thursday it would start investigating the dominance of Amazon, Microsoft and Google in the £15bn public cloud infrastructure market.

read more here.

The survey will focus on so-called “hyperscalers” such as Amazon Web Services and Microsoft Azure, which allow businesses to access computing power and data storage from remote servers. Amazon, Microsoft and Google together generate about 81% of the market’s revenue, according to Ofcom.

The regulator said a final report would be released within 12 months detailing any concerns and proposed recommendations, adding that further action could be taken if any restrictions on competition and innovation were found.

Over the next year, Ofcom plans to conduct more investigations into other digital markets, including personal messaging and virtual assistants.

— Ryan Brown

Banks outperform other sectors, but gain little

Banks were the best performers in Europe at midday, with the sector up 1.3% since yesterday.

Soaring inflation has prompted the region’s central banks to raise interest rates, generating extra profits for the region’s banks.

Pan-European bank Unicredit led gains with a 6.4% gain after Chief Executive Andrea Orcel announced the bank would raise its full-year guidance in October’s third-quarter results.

Shares in Spanish banking group Banco Sabadell rose 5.2 percent as the group has negotiated possible payments deals with Worldline, Nexi and Fiserv.

Shares in Deutsche Bank followed the trend up 4.9% after Chief Financial Officer James bon Moltke told a financial conference that the bank would be “cautiously” approaching 2023.

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Finecobank, Commerzbank, Banco BPM Group, Societe Generale and Caixabank all rose at least 3 percent.

— Hannah Ward-Grenton

Swiss franc weakens sharply against dollar, euro and pound after rate hike

The Swiss franc weakened sharply against the dollar, euro and pound after the Swiss National Bank decided to raise interest rates by 75 basis points to 0.5%.

The dollar was up 0.9% against the Swiss currency at 9:30 a.m. London time, while the euro and sterling were both up around 1.4% against the Swiss franc.

Earlier this week, the Swiss franc hit its highest level against the euro since January 2015, as economists began speculating on the prospect of a 75 basis point appreciation.

— Hannah Ward-Grenton

Norges Bank raises benchmark interest rate to 2.25%

Norges Bank raised interest rates to 2.25% from 1.75% and said it planned to raise rates further later this year.

Norges Bank said in a statement that “there are clear signs of economic cooling” and that “the easing of economic pressures will help to further curb inflation.”

Based on the current assessment by the Monetary Policy Committee, the policy rate is likely to be raised further in November, the bank said.

— Hannah Ward-Grenton

Swiss National Bank raises benchmark interest rate to 0.5%

Swiss National Bank raises benchmark interest rate to 0.5%, a shift that ended the era of negative interest rates in Europe.

The 75 basis point rate hike was the first in 15 years after the June 16 rate hike to -0.25%. Before that, the SNB had kept rates at -0.75% since 2015.

Inflation in Switzerland is now running at its highest level in three decades, hitting 3.5% last month.

— Hannah Ward-Grenton

Italy heads to the polls on Sunday, here’s what to expect

Italian voters will head to the polls on Sunday for a snap election that is likely to see a government led by a far-right party come to power.

If this materializes, it would mark a dramatic political shift for a country already dealing with ongoing economic and political instability.

Opinion polls ahead of September 9, when the blackout period began, showed the right-wing coalition handily winning majorities in both the lower and lower chambers of the pared-down parliament.

The atmosphere at the launch of Giorgia Meloni’s campaign for Italy’s next general election in Cagliari on September 2, 2022 in Cagliari, Italy. Italians head to the polls for the September 25, 2022 general election.

Emmanuel Perrone | Getty Images News | Getty Images

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The coalition is led by Giorgia Meloni’s far-right Fratelli d’Italia (Italian Brothers) and includes three other right-leaning parties: Lega, under Matteo Salvini, Silvio Berlusconi’s Forza Italia and a smaller coalition partner, Noi Moderati.

The Italian Brotherhood emerged from the crowd and is expected to gain the largest share of the vote for a single party. It received nearly 25 percent of the vote, according to poll aggregator Politiche 2022, well ahead of its nearest right-wing ally Lega, which is expected to receive about 12 percent.

Read more about the upcoming election here

— Holly Aryat

Markets open: Fortum up 4%, Accor down 6%

Fortum’s shares rose again in early trade on Thursday after the Finnish company agreed to sell its 56 percent stake in German utility Uniper to the German government. The state-owned energy company transferred its stake in a nationalisation deal.

French hotel company Accor shares fell 6.3% at the open after JPMorgan downgraded the stock to underweight from neutral. The investment bank expressed concern that the group would not be able to return to previous levels of profitability, saying “we are now more worried than we like it.”

— Hannah Ward-Grenton

Credit Suisse plans to split its investment bank in three: FT

Credit Suisse plans to split its investment bank into three, according to the Financial Times.

The Swiss bank hopes to have a separate “bad bank” dedicated to risky assets as it recovers from years of scandals and missteps.

The new proposal suggests that Credit Suisse will sell some of its profitable units as part of a sweeping restructuring, with the full plan expected to be announced in the bank’s third-quarter results on October 27, the Financial Times reported.

— Hannah Ward-Grenton

Oil climbs after Fed rate hike, demand worries linger

Oil prices climbed after the Federal Reserve raised interest rates for the third time in a row.

Reuters also reported, citing people familiar with the matter, that Chinese refiners expect the country to release up to 15 million tonnes worth of export quotas for petroleum products in the rest of the year.

Brent crude futures rose 0.45% to $90.24 a barrel, while U.S. West Texas Intermediate crude also rose 0.45% to $83.3 a barrel.

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— Li Yingshan

JPMorgan says Fed rate hike could weigh on Asian risk assets

Tai Hui, chief Asia-Pacific market strategist at JPMorgan Asset Management, said Asian risk assets, especially export-oriented companies, will remain under pressure in the short term after the Fed hikes interest rates.

Tai added that the strong dollar is likely to persist, but the tightening of monetary policy by most Asian central banks (except China and Japan) should help limit the extent of Asian currencies’ depreciation.

The U.S. dollar index, which tracks the greenback against a basket of currencies, was last at 111.697.

— Abigail

CNBC Pro: This fund manager is beating the market.it’s his bet

Stocks fell, but funds managed by Patrick Armstrong of Plurimi Wealth continued to deliver positive returns. Fund managers have multiple short positions to play with market volatility.

Professional subscribers can read more here.

— Xavier Ong

CNBC Pro: Morgan Stanley’s Mike Wilson says key attributes he likes about stocks

Morgan Stanley’s Mike Wilson has remained defensive amid ongoing market volatility this year. He lists the key attributes he looks for in stocks.

Stocks with that attribute have “paid off” this year, and that trend is likely to continue until the market turns more bullish, Wilson said.

Professional subscribers can read more here.

— Xavier Ong

European market: here is the opening call

European shares are expected to open lower on Wednesday as investors react to the latest U.S. inflation data.

Britain’s FTSE is expected to open down 47 points to 7,341, Germany’s DAX is down 86 points to 13,106, France’s CAC 40 is down 28 points and Italy’s FTSE MIB is down 132 points to 22,010, according to IG.

The U.S. consumer price index for August came in above expectations, the U.S. Bureau of Labor Statistics reported on Tuesday, showing prices rose 0.1% in August and rose 8.3% on a yearly basis, defying economists’ expectations for headline inflation as global markets already fall back. It was down 0.1% month-on-month.

The core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK inflation data for August will be released soon, and Eurozone industrial production data for July will be released.

— Holly Aryat

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