European stocks rise as markets evaluate US and Chinese data

Siemens Energy shares rose more than 7% in early trading after the company raised 7.5 billion euros ($8.15). billion) in state guarantees related to German government projects.

The German Economy Ministry announced late on Tuesday that it had provided the support as part of a broader package of €15 billion in guarantee lines agreed with banks and other interested parties.

At the bottom of the European blue-chip index, shares in French train maker Alstom plunged more than 10% after the company announced it would cut 1,500 jobs and sell assets as it seeks to shore up its balance sheet.

-Elliot Smith

Siemens Energy has raised 7.5 billion euros ($8.15) billion) in state guarantees related to German government projects, hours before announcing a loss of almost 5 billion euros for its fiscal year.

The German Economy Ministry announced late on Tuesday that it had provided the support as part of a broader package of €15 billion in guarantee lines agreed with banks and other interested parties, following talks with private lenders and the company’s largest shareholder. the company, Siemens AG.

The company denied that the tax guarantees constitute “state aid,” and Siemens Energy CEO Christian Bruch told CNBC on Wednesday that no cash is involved.

The company “will pay money for these money-back guarantees, so it’s like an insurance package,” he stressed.

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-Elliot Smith

UK inflation fell sharply in October to 4.6% from 6.7% the previous month, hitting its lowest level in two years.

The general consumer price index remained stable monthly. Economists polled by Reuters expected the headline CPI to rise 4.8% year-on-year and 0.1% from the previous month.

The core CPI, which excludes volatile food, energy, alcohol and tobacco prices, fell to 5.7% annually in October from 6.1% in September.

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-Elliot Smith

The Chinese economy has been in crisis this year no thanks to a drop in exports, a slowdown in consumer spending and a prolonged slump in the real estate sector, and several analysts are now bearish on the Asian giant.

Chinese stocks have performed poorly: Hong Kong’s Hang Seng Index has plunged about 14% so far this year, while the Shenzhen component is down 10%.

Many emerging market funds have also reduced their allocations to China by about 200 basis points this year and shifted their weight to other markets such as Taiwan, India, South Korea, Brazil and Mexico in anticipation of better valuations and growth.

However, analysts see opportunities in the Chinese market right now, naming sectors (and stocks) that are poised to

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—Amala Balakrishner

As the end of the year approaches, investors are likely to review their portfolios and consider which stocks to sell to harvest tax losses.

Tax loss harvesting is a strategy to offset capital gains tax on stocks whose price has risen with losses on unprofitable stocks.

To help investors, Scotiabank identified several stocks in Canada’s TSX Composite index that are down significantly this year but that their analysts still rate as “Outper Sector.”

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—Ganesh Rao

European markets are expected to open in mixed territory on Wednesday.

The UK’s FTSE 100 index is expected to open 4 points lower at 7,419, Germany’s DAX is expected to rise 10 points to 15,628, France’s CAC is expected to rise 4 points to 7,191 and Italy’s FTSE MIB is expected to rise 81 points to 29,251, data shows. from IG.

Profits come from Infineon, Siemens Energy and Aviva. UK inflation figures for October will be published.

-Holly Ellyatt