2024 central bank cuts in focus

Executives in the cryptocurrency industry called the start of a new bull run with a growing number of voices calling for fresh all-time highs for bitcoin in 2024 above $100,000.

Bitcoin has rallied more than 120% this year, with many optimistic about the surge continuing into 2024.

“It feels that [2023]was a year to get ready for the bull run that is yet to come. But the sentiment is very hopeful for [2024] and 25,” Pascal Gauthier, CEO of Ledger, told CNBC last week in an interview.

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– Arjun Kharpal

Nokia shares slipped 6% by mid-afternoon on rumors that AT&T may remove the Finnish mobile network provider from its vendor list. The rumor was seemingly sparked by a LinkedIn post from EJL Wireless Research President Earl Lum.

At the top of the Stoxx 600, Belgian pharmaceutical company UCB climbed more than 5% after the European Commission approved its new Zilbrysq drug for adults with generalized myasthenia gravis, an autoimmune disorder.

– Elliot Smith

Expectations of rate cuts in early 2024 — aided by a dovish shift in tone from the U.S. Federal Reserve, along with promising inflation prints in the U.S. and euro one — have powered a recent global market rally.

But Barclays strategists say they “don’t see it” and “remain sceptical that the pace of disinflation can be sustained.”

“We caution further falls in inflation will be more difficult from here, especially against still-robust demand and labour-market dynamics in the U.S.,” the British lender’s FICC Research division said in a note on Monday.

“We still see the first cuts from the ECB in July, the BoE in August and the Fed in December.”

– Elliot Smith

The pan-European Stoxx 600 was down 0.3% by mid-morning, with mining stocks shedding 2.1% to lead losses while oil and gas stocks dropped 1.8%.

Nokia shares slipped 5.5% by early afternoon on rumors that AT&T may remove the Finnish mobile network provider from its vendor list. The rumor was seemingly sparked by a LinkedIn post from EJL Wireless Research President Earl Lum.

At the top of the Stoxx 600, Belgian pharmaceutical company UCB climbed more than 4% after the European Commission approved its new Zilbrysq drug for adults with generalized myasthenia gravis, an autoimmune disorder.

– Elliot Smith

The pan-European Stoxx 600 hovered just below the flatline in early trade, with mining stocks shedding 1.5% to lead loses while retail stocks added 0.8%.

Britain’s FTSE 100 is seen around 21 points lower at 7,508 Germany’s DAX is set to add around 14 points to 16,412 and France’s CAC 40 is expected to drop around 7 points to 7,339.

Stocks have faced a mixed environment this year, according to one portfolio manager — but several should provide good investment opportunities looking ahead following a broadening of the market.

When pressed on what stocks make good plays, Dunn responded with four names, adding: “There’s a lot of opportunities out there to pick up really good companies on the cheap.”

Pro

— Amala Balakrishner

Major changes have taken place in the economy over the past five years.

A long-standing zero-interest rate regime has given way to rising rates, leading to higher borrowing costs — a situation usually bad for stocks.

But the red-hot inflation that characterized the past couple of years is now cooling, raising several questions for investors: How will this affect stocks and interest rates?

CNBC Pro spoke to financial advisors and investment experts to find out how they would allocate $250,000 over the next five years. They came up with three types of portfolios that cater to investors with different risk appetites.

CNBC Pro subscribers can read more here.

— Weizhen Tan