Stocks, European GDP data and earnings
Chinese automotive stocks fall after EU slaps China with EV tariffs
The European Union raised tariffs on China-made electric vehicles to as high as 45.3%, concluding an anti-subsidy probe that had divided member states and prompted counter measures from Beijing.
A number of Chinese EV stocks were down, including Nio, which fell about 6%; Geely, which fell about 4.7%; and Li Auto, which fell 2.6%.
The new duties will range from 7.8% for Tesla to 35.3% for China-based SAIC, on top of the EU’s existing 10% car import duty.
— Dylan Butts
CNBC Pro: These stocks and bonds are set to win from the U.K.’s budget, analysts say
The U.K.’s Labour Party is set to unveil its government budget for the first time in 14 years later today.
U.K. Finance Minister Rachel Reeves is expected to end months of speculation about the government’s intention to raise taxes, change rules, and borrow to support long-term investment.
Investment bank analysts have highlighted several stocks that could win or lose if the rumored measures are unveiled or curtailed.
CNBC Pro subscribers can read more about the stocks impacted here.
— Ganesh Rao
The dollar’s value could wane under a Trump presidency, investor warns
Some investors believe that under a Trump presidency, higher interest rates and inflation could lead to a more expensive dollar. But Erik Knutzen, co-chief investment officer of Neuberger Berman’s Multi-Asset Strategies, says that the dollar could actually decline under a Trump administration.
“The dollar did rally through the end of the year after the surprise win of Trump in 2016, but the dollar declined in value for 2017 when Trump was enacting the policies that were supposedly going to be more inflationary and cause higher interest rates,” he said on CNBC’s “The Exchange” on Tuesday afternoon. “Trump and his cohort actually would like to see a weaker dollar to support the American economy. Yes, the dollar may have some short-term impetus, but frankly you could probably fade that trade if Trump is not elected.”
Knutzen added that the dollar will probably weaken in the near term in the scenario that Trump loses the November election.
— Lisa Kailai Han
CNBC Pro: ‘Absurdly cheap’: Bottom-up investor names Japan sectors — and stocks — to invest in right now
Japanese markets have made steady gains this week – and one bottom-up investor sees potential for it to advance even further.
“When we look at Japan — it’s very difficult not to be bullish on stocks. Because even companies that are struggling in terms of earnings have depressed valuations and may not see a drastic fall in their stock price even if earnings are weak,” Mio Kato, founder of capital markets firm LightStream Research, said.
“When we look at the valuations of a lot of companies, they look absurdly cheap,” he added.
Kato also revealed sectors – and stocks – he is betting on right now.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
European markets: Here are the opening calls
European markets are expected to open in negative territory Wednesday.
The U.K.’s FTSE 100 index is expected to open 41 points lower at 8,178, Germany’s DAX down 60 points at 19,420, France’s CAC down 27 points at 7,481 and Italy’s FTSE MIB down 181 points at 34,509, according to data from IG.
Preliminary quarterly growth data for Europe will be closely watched on Wednesday for a further indication on the state of the region’s economy.
Meanwhile, earnings are set to come from UBS, Amundi, BASF, Capgemini, Raiffeisen Bank International, Wolters Kluwer, Aston Martin Lagonda, Volkswagen, Schneider Electric, Airbus, Standard Chartered, GSK, Ubisoft and Next.
— Holly Ellyatt
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