Europe stocks climb as rally continues into December; mining stocks up 3.4% on China data

Here’s how the major indexes opened on Friday:

— Pia Singh

U.K. house prices rose 0.2% in November, according to data from lender Nationwide that was published Friday. Economists polled by Reuters had forecast a 0.4% decline.

House prices were still 2% lower than a year ago.

“There has been a significant change in market expectations for the future path of [the Bank of England’s] Bank Rate in recent months which, if sustained, could provide much needed support for housing market activity,” said Nationwide’s chief economist, Robert Gardner.

In mid-August, investors expected a peak rate of 6% followed by a decline to around 4% over the next five years, but markets now suggest rates have already peaked at 5.25% and will be lowered to around 3.5% in the coming years, he said. That has sent down longer-term swap rates that underpin mortgage pricing.

“If sustained, this will help to ease the affordability pressures that have been stifling housing market activity in recent quarters, where the number of mortgage approvals for house purchases has been running at c.30% below pre-pandemic levels,” Gardner said.

— Jenni Reid

European stocks are heading for a strong start Friday, extending November’s positive momentum into the new month.

The U.K.’s FTSE 100 looks set to open 42 points higher at 7,487, according to IG data. Germany’s DAX is seen opening 60 points higher at 16,293, with France’s CAC 40 up by 25 points at 7,338 and Italy’s MIB up 125 points at 29,891.

— Jenni Reid

China’s manufacturing sector unexpectedly expanded in November, according to a survey by Caixin.

The Caixin purchasing managers’ index climbed to 50.7 last month from 49.5 in October, as a rise in new orders helped lift factory production.

The November PMI recorded the fastest expansion in three months and beat Reuters poll estimates of 49.8.

“Though modest, the rate of new order growth was the best seen since June, with firms often noting that firmer market conditions had helped to lift sales. However, new work from overseas continued to fall slightly, underscoring a relatively challenging external demand environment,” the survey said.

A reading above the 50-point mark signifies growth.

— Shreyashi Sanyal

Stocks had a bright start to the new month, with the Stoxx 600 index 0.5% higher at 9 a.m. U.K. time and all sectors trading in the green.

London’s FTSE 100 index rose 0.8%, while France’s CAC 40 and Germany’s DAX were up by 0.45% and 0.7%, respectively.

One corner of the economy in China is one of Goldman’s top preferred sub-sectors — and six key themes will take center stage in 2024.

The bank named three Chinese stocks it says are “well positioned” for those themes.

One of the stocks is on Goldman’s conviction list, which comprises buy-rated names it expects to outperform.

CNBC Pro subscribers can read more here.

— Weizhen Tan

As markets got another signal Thursday that inflation is ebbing, they solidified bets that the Fed is done hiking rates and will be cutting substantially in 2024.

Futures pricing suggested only a minimal chance of rate increases at the Federal Open Market Committee’s December and January meetings, according to CME Group data. Moreover, futures pointed to a better-than-even chance that the central bank will cut benchmark rates five times next year, the equivalent of 1.25 percentage points.

The moves followed Thursday morning economic readings showing that core PCE inflation fell to 3.5% and continuing jobless claims rose to a two-year high.

—Jeff Cox