European stocks mixed as earnings dominate; SAP up 5% to all-time high

Swedish defence steadfast Saab topped Stoxx 600 gains successful greeting trade, rising 6.8% aft beating expert expectations for earnings.

The erstwhile car company, which present makes subject products and services including the Gripen combatant jet, reported operating income that jumped 38% year-on-year to 1.187 cardinal Swedish kronor ($112.8 million), versus an estimation of 1.14 cardinal kronor.

Saab saw bid bookings summation 41% successful the 4th and reiterated its full-year outlook.

"We proceed to spot expanding request arsenic European nations request to replenish their defence stocks, which volition necessitate semipermanent efforts," CEO Micael Johansson said successful a statement. "We are increasing to conscionable this expanding demand, for illustration by investing successful capacity, automating our accumulation and gathering caller plants."

Analysts person previously flagged that Sweden's accession to NATO earlier this twelvemonth would supply a tailwind for the company.

Saab stock price.

Stoxx 600 index.

European banal markets were mixed successful aboriginal trade, with the benchmark Stoxx 600 scale — which fell 0.66% connected Monday — down by different 0.1% astatine 8:35 a.m. successful London.

The U.K.'s FTSE 100 and France's CAC 40 were little by 0.28% and 0.11%, respectively. Germany's DAX managed a 0.55% gain.

— Jenni Reid

Frankfurt-listed shares of SAP jumped 5% astatine the marketplace unfastened to an all-time high, aft the German bundle steadfast raised its full-year outlook successful third-quarter results published aft the marketplace adjacent Monday.

The institution reported full gross up by 9% year-on-year to 8.47 cardinal euros ($9.17 billion), and operating nett up by 29% to 2.21 cardinal euros, higher than expected. Revenue successful its unreality concern roseate 25%, versus 11% for some unreality and software.

It besides nudged its full-year guidance for unreality and bundle gross higher, to 29.5 cardinal euros to 29.8 cardinal euros, up from a erstwhile forecast of 29 cardinal euros to 29.5 cardinal euros.

SAP stock price.

"We are precise blessed with the results we announced yesterday night," SAP CEO Christian Klein told CNBC's "Squawk Box Europe" connected Tuesday.

"It's decidedly cloud, but SAP is much than cloud. We are embedding AI, we are moving the operating strategy of the world, truthful for america it's each astir cloud, positive AI gives customers a faster concern exemplary transformation, resilient proviso chains," Klein said.

"It's each astir decarbonization, particularly for galore ample companies present successful Europe, and this is what we are doing, we are selling bundle which runs concern processes, and that is successful times similar that, precise important for our customers."

The institution has been conducting a restructuring this twelvemonth to absorption connected concern AI. SAP is besides listed connected the New York Stock Exchange.

— Jenni Reid

U.K. nett borrowing roseate to £16.6 cardinal ($21.59 billion) successful September, the Office for National Statistics said Tuesday, up £2.1 cardinal from the twelvemonth before.

It was besides higher than the £15.1 cardinal forecast by the government's autarkic advisory group, the Office for Budget Responsibility, and the 3rd highest September borrowing since monthly records began successful January 1993.

It comes arsenic the Labour authorities prepares to present its archetypal fund connected Oct. 30.

Analysts accidental policymakers are successful a hard spot, having pledged to trim indebtedness arsenic a stock of GDP wrong the adjacent 5 years and equilibrium the fund truthful revenues conscionable costs, portion besides promising not to summation respective large taxes, including connected income, income and corporations. U.K. Finance Minister Rachel Reeves, who took her station successful July, has meantime accused the erstwhile medication of leaving a £22 cardinal financing shortfall for the coming year.

Reports suggest she whitethorn usage the fund to alteration the mode indebtedness is calculated by the Treasury successful bid to make much country for superior expenditure.

The latest borrowing figures "highlight the constricted scope the [Finance Minister] has to summation day-to-day spending without raising taxes," Alex Kerr, U.K. economist astatine Capital Economics, said successful a note.

"That said, if she tweaks her fiscal rules, she volition inactive person country to rise nationalist investment," Kerr said, predicting Reeves would rise existent spending — which excludes concern — by a nett £25 cardinal a twelvemonth funded by taxation rises.

A alteration successful indebtedness rules would let for borrowing for nationalist concern by an further £53 billion, Kerr added.

— Jenni Reid

Shipping elephantine Maersk raised its full-year 2024 guidance Monday citing beardown third-quarter show on with "strong instrumentality marketplace request and the continuation of the Red Sea situation."

The Danish institution posted preliminary, unaudited net earlier interest, taxes, depreciation, and amortization (EBITDA) of $4.8 billion, supra an expert statement of $3.7 billion.

Maersk hiked its full-year EBITDA forecast to $11 cardinal to $11.5 billion, up from a erstwhile forecast of $9 cardinal to $11 billion, and said it present sees escaped currency travel of astatine slightest $3 billion, up from astatine slightest $2 cardinal previously.

The outlook for planetary instrumentality marketplace measurement maturation for the twelvemonth has risen to astir 6% from 4%-6% previously, it added successful a trading update published aft the marketplace adjacent Monday.

Maersk stock price.

The Red Sea situation has this twelvemonth seen shipping companies divert commercialized astir the confederate seashore of Africa, avoiding the Red Sea and Gulf of Aden following attacks connected its vessels by Houthi rebels. That has added to travel times, taking capableness retired of the planetary instrumentality market.

Citi expert Sathish Sivakumar said successful a Monday enactment that Maersk's full-year statement upgrade was "mostly driven" by the improved third-quarter results, and that helium besides expected an summation successful fourth-quarter statement on with much item successful the afloat institution results owed connected Oct. 31.

Sivakumar, who has a merchantability standing connected the stock, said determination were upside risks to Maersk falling to his people price, including improved user confidence, a favorable freight complaint situation and ongoing choky proviso concatenation conditions.

— Jenni Reid

European markets are expected to unfastened successful mixed territory Tuesday.

The U.K.'s FTSE 100 scale is expected to unfastened 15 points little astatine 8,306, Germany's DAX up 68 points astatine 19,522, France's CAC up 2 points astatine 7,533 and Italy's FTSE MIB up 8 points astatine 34,798, according to information from IG.

Earnings are acceptable to travel from Randstad, Tele2, DnB and InterContinental Hotels Group, and the IMF publishes its latest World Economic Outlook report.

— Holly Ellyatt

Macroeconomic uncertainties, mounting geopolitical tensions and a tendency to hedge against ostentation person fixed golden — the classical "safe haven" plus — a blistering rally.

Spot golden prices person soared supra $2,700 an ounce, rallying for the 5th time connected Monday to deed different grounds precocious of implicit $2,733 an ounce. Year-to-date, spot gold is up implicit 30%.

And Michael Widmer, caput of metals probe astatine Bank of America, says it has further to go.

Gold

'If golden doesn't rally now, past I'm not definite erstwhile it ever will. Actually, I deliberation the cardinal backdrop looks really rather good," helium told CNBC's "Squawk Box Europe" connected Monday.

Others similar John Reade, elder markets strategist astatine the World Gold Council, impulse immoderate caution.

CNBC Pro subscribers tin observe much here.

— Amala Balakrishner

Despite a choky U.S. statesmanlike predetermination remaining excessively adjacent to call, UBS remains constructive connected equities and does not deliberation immoderate uptick successful volatility could harm a beardown market.

"As neither enactment holds a wide vantage successful immoderate of the cardinal plaything states that could determine the outcome, the contention remains excessively adjacent to call, and we expect volatility to prime up successful the coming weeks amid elevated uncertainty," UBS Global Wealth Management main concern serviceman Solita Marcelli wrote Monday. "But we besides deliberation the imaginable volatility is improbable to derail affirmative equity fundamentals, and punctual investors not to marque melodramatic portfolio changes based connected expected predetermination outcomes."

— Brian Evans

Scotiabank has highlighted 3 biotechnology companies arsenic their "top picks," each with the imaginable to much than treble successful banal terms implicit the adjacent 12 months.

The slope believes involvement complaint cuts are a notable tailwind that volition apt reignite wider concern involvement successful the biotech sector.

CNBC Pro subscribers tin work much here.

— Ganesh Rao