US stocks open lower
US stocks opened lower on Monday as investors anticipated the Federal Reserve’s two-day meeting this week.
The Dow Jones Industrial Average was down 0.8% in early morning trading. The S&P 500 and Nasdaq were both down 0.9%.
— Karen Gilchrist
Rheinmetall up 3.7%
German gunsmith Rheinmetall jumped 3.7% on Monday after announcing an order for special vehicles for the German armed forces.
The Bundeswehr contracted with Rheinmetall to purchase a total of 48 fuel tankers for use at numerous German Army and Air Force airfields.
— Karen Gilchrist
Porsche up almost 3%
Shares of Porsche rose nearly 3% in early trading on Monday after German automaker Volkswagen said it was targeting a valuation of up to 75 billion euros for the luxury brand in its IPO.
Porsche was last seen up 2.5% while Volkswagen was slightly above the flat line.
— Karen Gilchrist
European markets open in the red
European markets opened well in the red on Monday. Here’s where the shares were after 15 minutes of trading:
The French CAC down 0.94%
German DAX down 0.58%
Italian FTSE MIB down 0.92%
Spanish IBEX down 0.4%
Treasury yields rise
Treasury yields rose early on Monday.
The yield on 2-year Treasury bills rose 1 basis point to trade at 3.8713% at 2:45 a.m. ET. It comes after the yield last week soared above 3.9% – a level last seen in November 2007.
The 10-year Treasury yield, meanwhile, was less than a basis point higher at 3.4554%. Yields move opposite to prices. One basis point equals 0.01%.
Learn more here.
European stocks fell last week
The pan-European Stoxx 600 slipped 2.89% last week:
UK stock markets closed as country marks death of Queen Elizabeth
In a statement released last week, the London Stock Exchange Group said it was “deeply saddened by the death of Her Majesty Queen Elizabeth II”.
“The day of the funeral of Her Majesty Queen Elizabeth II, 19 September 2022, has been declared a public holiday in the United Kingdom, therefore the London Stock Exchange (the “Stock Exchange”) in the stock exchanges will be closed,” said he added.
CNBC Pro: Buy These Inflation-Fighting Funds to Protect Your Money, Strategist Says
With inflation remaining stubbornly high, where can investors hide given that US stocks and bonds have been volatile?
There are three types of funds that look attractive right now, according to Mark Jolley, global strategist at CCB International Securities. He named his favorites in each category.
CNBC Pro subscribers can learn more here.
Oil prices climb as lifting of China’s Covid lockdown boosts demand outlook
Oil prices soared on Monday as the Chinese megacity of Chengdu emerges from a two-week lockdown.
The two oil benchmarks each rose more than 1% earlier in the session, and Brent futures last rose 0.66% to $91.95 a barrel. US West Texas Intermediate gained 0.56% to $85.59 a barrel.
The improving demand outlook offsets fears that potential rate hikes later this week will increase recession risks.
— Lee Ying Shan
CNBC Pro: This ETF Is Risky, But Outperforms When Volatility Rises
As volatility returns again, investors looking for a short-term trade might opt for this ETF with a track record of outperforming during times of extreme market movements.
“It’s probably the prospect of very quick and big gains when everyone in the market seems to be losing their shirt that I think is attractive to this fund,” said Daniel Martins, chief researcher and portfolio strategist at DM Martins Research.
Yet, despite the potential for high returns, the ETF carries a high level of risk and is not for all investors.
Pro subscribers can learn more here.
— Zavier Ong
Stocks could fall below 3,700 ahead of next rally, Fundstrat’s Newton says
Mark Newton, head of technical analysis at Fundstrat, said investors shouldn’t be too tempted by a potential rebound in the coming days as the S&P 500 could fall below 3,700 before a more meaningful rally. does not trigger.
“September’s Triple Witching Friday close at multi-week lows is particularly negative for the outlook for a rally, and further selling still looks likely over the next two weeks to cut 3,700 before a rally of relief can begin in October,” he said.
On Friday, the S&P 500 ended the week at 3,873.33.
“While a 1-2 day attempted bounce cannot be ruled out given this week’s decline, I don’t expect much strength until prices hit support below 3,700 in October,” he added. “Tactically, ‘cash remains king’ and patience is required until markets hit bearish targets and begin to show either volume and magnitude divergences or a capitulation to buy.”