Credit Suisse announces sale of 462 million shares for 3.82 Swiss francs
Credit Suisse on Monday revealed that “qualified investors” have pledged to buy more than 462 million new shares at a purchase price of 3.82 Swiss francs ($3.83) as the embattled lender seeks to raise 4 billion Swiss francs in capital.
Expected gross proceeds from the share placement are expected to total Swiss francs 1.76 billion, the bank said in a statement, with the Saudi National Bank (SNB) holding 307,591,623 of the new shares to increase its holdings of Credit Suisse shares to 9.9%. .
The capital increase will fund a massive reorganization at Switzerland’s second-largest lender after a series of scandals and heavy losses.
Read more here.
– Elliot Smith
CNBC Pro: Tempted to Buy the Dip on Technology Stocks? Strategist reveals when to get back in
Shares of Amazon, Meta and Alphabet all fell last week after disappointing earnings, but strategist Dan Scott says investors looking to buy tech stocks in the dip should hold off for now.
Instead, market participants must wait for a major shift, Scott, head of multi-asset management at Swiss asset manager Vontobel, told CNBC.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Traders Looking for Signs of Fed Slowing
Wall Street will keep a close eye on the Federal Reserve’s statement this week for signs that the central bank will ease the pace of the rate hike.
According to the CME FedWatch tool, traders believe there is an 80% chance that the Fed will raise interest rates by three-quarters of a point on Wednesday.
That would bring the central bank’s target range to 3.75% to 4%.
Other than that, however, the market looks more uncertain. There is only a 44% chance of another surge of that magnitude in December.
— Jesse Pound
The US dollar has more room to strengthen on interest rate differentials: Wells Fargo
The US dollar is expected to strengthen further on interest rate differentials as central banks around the world take a “less aggressive” note, Wells Fargo said.
“We’re starting to see some foreign central banks… getting a little on the less aggressive side,” as the Federal Reserve maintains its aggressive stance, currency strategist Brendan McKenna said on CNBC’s “Squawk Box Asia.”
McKenna said he expects the dollar’s strengthening to continue “at least” into the first quarter of next year.
— Jihye Lee
Factory activity in China shrank in October, without expectations
Chinese factory activity shrank in October compared to September, data from the National Bureau of Statistics shows.
The official manufacturing purchasing managers index came in at 49.2, missing expectations for a reading of 50 – the figure that separates monthly growth from contraction.
In September, the PMI stood at 50.1.
China’s official PMI for non-manufacturing companies came in at 48.7, compared to a September figure of 50.6.
— Abigail Of
CNBC Pro: These 12 Cheap Global Stocks Are Expected To Rise – And Analysts Love Them
Stocks around the world have been sold this year on fears of a recession and rising inflation – and now look cheap.
Analysts say there may be buying opportunities in some stocks that they expect to rise.
To find those stocks, CNBC Pro screened for names under the MSCI World index that met a number of criteria.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: these are the opening calls
European markets are set to start the new trading week on a positive note after a shaky end to last week as investors processed the European Central Bank’s decision to raise its interest rate by 75 basis points.
London’s FTSE index is expected to open 22 points higher at 7,063, Germany’s DAX 73 points higher at 13,313, France’s CAC 28 points higher at 6,299 and Italy’s FTSE MIB 75 points higher at 22,508, according to data from IG.
Regional investors are looking forward to the latest euro-zone inflation data for October, as well as gross domestic product (GDP) data for the third quarter.
Elsewhere overnight, Asia-Pacific stocks were largely higher on Monday as Chinese manufacturing activity beat expectations, and markets are looking ahead to the US Federal Reserve meeting later this week when it will announce its rate decision.
There are no major earnings or data releases.
— Holly Ellyatt