German industrial orders fell unexpectedly in November
Steam rises of the coking plant near the Schwelgern blast furnace at the German industrial group ThyssenKrupp’s plant in Duisburg, western Germany, on October 14, 2024.
Ina Fassbender | Afp | Getty Images
German industrial orders fell unexpectedly in November, data released Wednesday showed, reflecting more gloom in Europe’s largest economy.
Industrial orders were down 5.4% in November, compared to the previous month, according to data released by Germany’s Federal Statistical Office (Destatis).
New orders excluding large-scale ones were nevertheless 0.2% higher than in the previous month, the office said. Analysts polled by Reuters had expected no change in the monthly figure.
The negative month-on-month development of new orders in manufacturing in November was primarily down to “sizeable large-scale orders for other transport equipment (aircraft, ships, trains, military vehicles) which were received in October 2024,” Destatis said.
“This high volume of large-scale orders was not repeated in November,” it added.
“Therefore, new orders in this sector in November 2024 were 58.4% lower than in the previous month, on a seasonally and calendar adjusted basis.”
— Holly Ellyatt
Shell lowers LNG production forecast in fourth-quarter trading update
The Shell logo is displayed outside a petrol station in Radstock in Somerset, England, on Feb. 17, 2024.
Matt Cardy | Getty Images News | Getty Images
British energy giant Shell on Wednesday trimmed its liquefied natural gas (LNG) production outlook for the fourth quarter of 2024 and warned trading results for its chemicals and oil products division were expected to be “significantly lower” compared to the third quarter.
In a trading update, Shell cut its LNG production forecast for the final three months of last year to 6.8 to 7.2 million metric tons, down from a previous forecast of between 6.9 to 7.5 million metric tons.
The firm said trading results for its chemicals and oil products division were expected to be significantly lower than in the third quarter, “reflecting seasonality.”
Shell said it expects non-cash post-tax impairments of $1.5 billion to $3 billion in the fourth quarter and a $1.3 billion charge due to the timing of payments for emissions certificates. The latter charge relates to permits in Germany and the U.S.
The company is poised to report fourth-quarter earnings on Jan. 30. Shell’s London-listed shares are up more than 5% year-to-date.
“I think, overall, from the update that we heard today from Shell that it reinforces the message that we’ve already heard from [Shell CEO] Wael Sawan, which is one of caution,” Andrew Critchlow, head of EMEA news at S&P Global Platts, told CNBC’s “Squawk Box Europe” on Wednesday.
“It was a pretty tepid year for oil markets last year and that has a knock-on effect on all the oil majors,” Critchlow said.
— Sam Meredith
CNBC Pro: These 4 ETFs have outperformed the S&P 500 over the past five years
Four ETFs in Europe and North America have beaten the S&P 500 over the past five consecutive years, according to a CNBC Pro screen.
The U.S. benchmark rose by 23.3% in 2024 and 24.2% the previous year, making it particularly challenging for funds to outperform. It’s only the third time the S&P 500 has logged back-to-back gains of that size in the past century, according to Deutsche Bank.
CNBC Pro screened over 10,600 ETFs listed in Europe and North America to identify the four ETFs.
CNBC Pro subscribers can read more here.
— Ganesh Rao
UBS says the ‘bull market remains intact’ this year
Despite expensive valuations, UBS continues to view U.S. equities and artificial intelligence-exposed parts of the market as attractive.
The firm predicts earnings growth to drive another year of “concentrated returns,” continuing 2024’s ‘Mag 7’ leadership.
“U.S. equity valuations are higher than average, but historically valuations have had very little correlation with returns over the next 12 months. Instead, profit growth matters more,” David Lefkowitz, CIO head of US equities for UBS, wrote in a Monday note to clients. “We think the bull market remains intact driven by solid economic and corporate profit growth.”
Lefkowitz expects “healthy” S&P 500 earnings per share growth of 9% this year, remaining bullish on stocks overall even as the firm expects periods of volatility in the year ahead.
— Pia Singh
CNBC Pro: Goldman loves this European stock riding the data center wave
Goldman Sachs is bullish on one of Italy’s cable manufacturing giants.
And the stock is among the latest additions to the investment bank’s “Conviction List – Directors’ Cut” for Europe.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
European markets: Here are the opening calls
European markets are expected to open broadly lower Wednesday.
The U.K.’s FTSE 100 index is expected to open 4 points lower at 8,242, Germany’s DAX down 40 points at 20,308, France’s CAC down 22 points at 7,477 and Italy’s FTSE MIB down 83 points at 34,922, according to data from IG.
Traders will be keeping an eye on European consumer confidence and economic sentiment data. On the earnings front, Shell is set to release its fourth-quarter update.
— Holly Ellyatt
