European stocks move higher as global markets focus on Fed; Ocado share up 31%

Online grocer Ocado topped the Stoxx 600 in early trade with shares up 31%. The gains come after the company partnered with South Korean retailer Lotte Shopping.

Ocado and Lotte are set to develop a network of robotic warehouses, coined “Customer Fulfillment Centres” by Ocado, across South Korea in a move to expand the online shopping business.

—Hannah Ward-Glenton

Oil and gas giant BP on Tuesday reported stronger-than-expected earnings for the third quarter.

The British energy major reported an underlying replacement cost profit, used as a proxy for net profit, of $8.2 billion for the three months to the end of September. That compared with $8.5 billion in the previous quarter and a net profit of $3.3 billion in the same period a year earlier.

The world’s largest oil and gas companies have reported big profits in recent months, benefiting from rising commodity prices following Russia’s invasion of Ukraine.

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– Sam Meredith

Citi has singled out a major electric car maker as one of its “best” buy ideas among Chinese stocks.

It expects shares in the automaker to rise more than 260% over the next 12 months as sales of electric cars rise.

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— Ganesh Rao

The Caixin manufacturing Purchasing Managers’ Index for October showed that factory activity declined for the third consecutive month.

The reading came in at 49.2, compared with expectations for a reading of 49. In September, the manufacturing PMI came in at 48.1, below the 50-point line that separates growth from contraction.

PMI readings compare activity from month to month.

Official data from the National Bureau of Statistics came in at 49.2 on Monday, missing expectations for a 50 print.

— Abigail Ng

After the stock market rally in October, investors are debating whether stocks have bottomed or if it is another short-lived bounce.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is in the latter camp, arguing that the rally once again looks temporary.

He told CNBC what he thinks investors should buy — and short.

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— Weizhen Tan

Hong Kong’s gross domestic product fell 4.5% in the third quarter of the year compared to the same period a year ago, preliminary estimates from the Census and Statistics Department showed on Monday.

It is the worst decline since the second quarter of 2020. Analysts polled by Reuters had expected growth of 0.7%, while GDP shrank 1.3% in the second quarter.

“The deteriorating external environment and continued disruption of cross-border land freight flows dealt a serious blow to Hong Kong’s exports,” the statement said, adding that the decline in GDP was “mainly due to the weak development of external demand during the quarter.”

Fixed investment, or investments, fell by 14.3%, while exports and imports also fell.

— Abigail Ng

Tesla may be an investor favorite for exposure to the electric car industry, but Citi and HSBC cite two options to play the growing demand for electric vehicles.

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— Zavier Ong

European markets are headed for a positive start to the trading session on Tuesday with global investors focusing on the US Federal Reserve’s policy meeting, which begins today. The central bank is expected to raise interest rates by 75 basis points on Wednesday when the meeting ends.

As for Europe’s opening talks, here they are:

London’s FTSE index is expected to open 31 points higher at 7,135, Germany’s DAX up 80 points at 13,348, France’s CAC up 31 points at 6,304 and Italy’s FTSE MIB up 178 points at 22,696, according to data from IG.

European markets closed higher on Monday despite euro zone GDP and inflation data pointing to further pain for the 19-member bloc, with consumer price inflation soaring to a record high in October and growth slowing sharply in the third quarter.

The revenue comes from BP, Fresenius and DSM on Tuesday. Data published include manufacturing managers’ indexes from the Netherlands, Ireland and Sweden for October.

—Holly Ellyatt