European stocks higher as global markets focus on the Fed; Ocado shares up 38%

The Bank of England saw solid demand from investors at its first quantitative easing unwind auction.

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—Matt Clinch

Ocado shares soared more than 32% on Tuesday after agreeing a partnership deal with South Korean retailer Lotte that will see the

German food delivery companies Delivery Hero and Hellofresh jumped 9% and 10% respectively on the back of the surge for their British peer.

At the bottom of the Stoxx 600, Denmark’s Jyske Bank dropped 6.5% after missing third-quarter core earnings expectations.

– Elliot Smith

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

Ocado and Lotte are set to develop a network of robotic warehouses, coined “Customer Fulfilment 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 third-quarter profits.

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

The world’s largest oil and gas majors have reported bumper earnings in recent months, benefitting from surging commodity prices following Russia’s invasion of Ukraine.

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– Sam Meredith

Citi has picked a large electric car maker as one of its “top” buy ideas among Chinese stocks.

It expects shares in the automaker to rise by more than 260% over the next 12 months as EV sales soar.

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— Ganesh Rao

The Caixin manufacturing Purchasing Managers’ Index for October showed that factory activity contracted for the third month in a row.

The reading came in at 49.2, compared with expectations for a print of 49. In September, the manufacturing PMI was at 48.1, below the 50-point mark 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 print of 50.

— Abigail Ng

After October’s stock market rally, investors are debating whether stocks have hit the bottom or if it’s another short-lived bounce.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is in the latter camp, arguing 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 by 4.5% in the third quarter of the year compared with the same period a year ago, advance estimates from the Census and Statistics Department showed Monday.

That’s the worst contraction since the second quarter of 2020. Analysts polled by Reuters expected 0.7% growth, while GDP decreased 1.3% in the second quarter.

“The worsened external environment and continued disruptions to cross-boundary land cargo flows dealt a serious blow to Hong Kong’s exports,” the statement said, adding the drop in GDP was “mainly attributable to the weak performance in external demand during the quarter.”

Fixed capital formation, or investment, decreased by 14.3%, while exports and imports also fell.

— Abigail Ng

Tesla may be an investor favorite for exposure to the EV industry, but Citi and HSBC name two alternatives to play the growing demand for electric vehicles.

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— Zavier Ong