Eurozone inflation soars to record high
Euro zone inflation surged 10.7% in October from a year earlier, as the bloc’s 19 members grappled with higher food and energy prices exacerbated by Russia’s invasion of Ukraine.
It was the highest monthly reading since the euro zone was established.
The data comes after countries separately reported lightning estimates last week. In Italy, headline inflation hit 12.8% from the previous year, while Germany said it jumped to 11.6%.
Inflation has risen by more than 20% in some countries, including Estonia, Latvia and Lithuania.
– Sylvia Amaro, Samantha Subin
Wheat prices up nearly 6% after Russia pulls out of grain export deal
Global wheat prices started to rise after Russia pulled out of the Black Sea grain export deal over the weekend.
The most-active wheat contract on the Chicago Board of Trade rose 5.8 percent to $8.77-1/2 a bushel around midnight London time, after hitting a high of $8.93 a bushel earlier, according to Reuters. Corn and soybean prices also rose.
The increase came after Russia announced on Saturday that it would suspend its participation in the Black Sea Grains Initiative it brokered in July and allow the export of key agricultural products from several Ukrainian ports.
Russia announced on Saturday that it would withdraw from the pact indefinitely after accusing Ukraine of launching a “massive” drone attack on the Black Sea Fleet in Sevastopol, Crimea.
Ukraine has not said whether it was responsible for the attack. President Volodymyr Zelenskyy said that Russia’s withdrawal from the initiative was “pretty foreseeable” and that the global food crisis would worsen.
Aerial view of the Sierra Leonean-flagged dry cargo ship Razoni arriving at the entrance to the Black Sea on the Bosphorus Strait in Istanbul, Turkey, August 3, 2022, from the port of Odessa.
Anadolu Agency | Anadolu Agency | Getty Images
Moscow’s move is “Russia’s absolutely transparent intention to return the threat of mass famine to Africa and Asia,” Zelensky said, adding, “In fact, access to food for more than seven million consumers has worsened. “
The United Nations and Turkey, which helped Ukraine and Russia reach a food deal, have agreed a plan with Ukraine to help move 16 ships (12 outbound and 4 inbound) stranded on the sea corridor used to export grain.
The Joint Coordination Center, an organization that oversees grain exports, said in a statement on Sunday, “In order to continue the initiative, it is recommended that Turkey and the United Nations delegation send 10 inspection teams tomorrow, aimed at inspecting 40 outgoing ships. This inspection plan has been approved by Ukraine. Accepted by the delegation. The delegation of the Russian Federation has been notified.”
— Holly Elliott
Goldman Sachs sees Fed rate peaking at 5%
Economists at Goldman Sachs expect the Fed funds rate to peak at 5% after raising their forecast for a 75 basis point rate hike at the central bank’s upcoming meeting this week.
Economists led by Jan Hatzius said in a note on Saturday that they would raise their forecasts by another 25 basis points – now calling for a 50 basis point hike in December, 25 basis points in February and an additional 25 basis points in March. 25 basis points.
“Inflation is likely to remain uncomfortably high for some time, which could make continued modest rate hikes the path of least resistance,” the report said.
— Li Zhihui
CNBC Pro: These 12 cheap global stocks expected to rise — and analysts love them
Stocks around the world have sold off this year on recession fears and soaring inflation — looking cheap now.
Analysts said there could be buying opportunities in some stocks they expect to rebound.
To find these stocks, CNBC Pro screened names under the MSCI World Index that met a number of criteria.
CNBC Pro subscribers can read more here.
— Tan Weizhen
Stock futures open
Futures were little changed when trading began at 6 p.m. ET on Sunday, with Nasdaq 100 futures down just 0.1% and S&P 500 and Dow futures near flat.
— Jesse Pound
Traders look for signs of Fed slowing
Wall Street will be closely watching the Fed’s statement this week for signs that the central bank will ease the pace of rate hikes.
According to the CME FedWatch tool, traders see an 80% chance of a three-quarter point rate hike from the Fed on Wednesday.
That would bring the central bank’s target range to 3.75% to 4%.
Beyond that, however, the market looks more uncertain. There is only a 44% chance of another rate hike in December.
— Jesse Pound
Dow on track for best month since 1976
Major stock indexes rose last week despite poor earnings. All three are on track to break a two-month losing streak, with the Dow on track for its best month in more than 40 years.
Here’s the thing:
- Up 5.72% last week, winning fourth straight week
- Up 14.40% for the month, the best month since January 1976, when it was up 14.41%
S&P 500 Index:
- It rose 3.95% last week, its second straight weekly gain
- Up 8.8% for the month
- It rose 2.24% last week, its second straight weekly gain
- Up 4.98% this month
–Jesse Pound, Christopher Hayes