European Stocks Head for Lower Open as Markets Await Latest Fed Minutes

This is CNBC’s live blog covering European markets.

European markets are heading for a lower open Wednesday as investors gauge the global economic outlook and await the minutes from the U.S. Federal Reserve’s latest monetary policy meeting.

U.S. stock futures rose slightly in overnight trading as Wall Street braced itself for more insight into the central bank’s rate-hiking agenda.

In Asia-Pacific overnight, markets were lower after Wall Street’s sharp losses overnight, and New Zealand’s central bank continued to hike its benchmark interest rate.

‘Insure against the worst’: Goldman picks stocks for a soft — and hard — economic landing

Investors are on edge after U.S. stocks fell for three consecutive weeks, signaling the possibility of higher interest rates for longer than expected.

The yield on the 6-month and 1-year Treasury bonds closed at 5% on Friday, thanks to several economic data releases last week that pointed toward a strong U.S. economy.

A rise in bond yields leads to increased borrowing costs for companies, which adds downward pressure on stocks.

Despite this challenging environment, Goldman Sachs remains optimistic and expects a “soft-landing” for the U.S. economy. In this scenario, inflation is controlled with a mild recession at most.

To capture the upside in a soft-landing scenario, the Wall Street bank said that investors should own stocks that can benefit from a decelerating inflation environment.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Wall Street loves Alibaba right now. Here’s what to expect from the tech giant’s earnings

Alibaba is a Wall Street favorite when it comes to playing the Chinese tech sector and the country’s Covid-19 reopening.

It is rated “buy” by almost all analysts — 93% — covering it, according to FactSet. They give it average potential upside of 43%.

The tech giant is due to report its earnings for the December quarter on Thursday. Here’s what Wall Street is expecting.

— Zavier Ong

CNBC Pro: Buffett-backed BYD and more: Analysts name top ‘climate stocks,’ giving one 100% upside

Energy storage and the future of transport are two of the “most attractive” climate themes to invest in right now, according to HSBC analysts.

The bank named buy-rated stocks under both of these themes which have among the highest upside to its price targets.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets are heading for a lower open Wednesday.

The U.K.’s FTSE 100 index is expected to open 16 points lower at 7,959, Germany’s DAX 4 points higher at 15,485, France’s CAC down 11 points at 7,294 and Italy’s FTSE MIB down 74 points at 27,365, according to data from IG.

Earnings are set to come from Lloyds Banking Group, Rio Tinto, Danone, Stellantis, Fresenius, Wolters Kluwer, Ferrovial and Iberdrola.

— Holly Ellyatt

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