stocks, news, data and earnings

Bank of England Governor Andrew Bailey said Tuesday that bets by investors on interest rate cuts this year were “not unreasonable,” but resisted giving a timeline.

“The market is essentially embodying in the curve that we will reduce interest rates during the course of this year,” Bailey told U.K. lawmakers at the Treasury Select Committee.

“We are not making a prediction of when or by how much [we will cut rates],” he continued. “But I think you can tell from that, that profile of the forecast … that it’s not unreasonable for the market to think about.”

He added that the economy had already shown signs of an upturn.

“There was a lot of emphasis again on this point about the recession, and not as much emphasis on … the fact that there is a strong story, particularly on the labor market, actually also on household incomes,” he said.

Still, he noted that the Bank did not need to see inflation fall to its 2% target before it begins cutting rates.

U.K. government bond yields fell as Bailey spoke, suggesting increased investor expectations of rate cuts.

— Karen Gilchrist

French industrial gases company Air Liquide topped Stoxx 600 gains Tuesday, trading 7.5% higher after beating full-year profit expectations in its results.

The firm also doubled its 2025 margin target announced two years ago, after nearly achieving it.

CEO François Jackow told CNBC he was confident it would be met given a “very strong performance” in efficiencies, value creation and pricing.

— Jenni Reid

Shares of French automotive supplier Forvia were down 12% in early afternoon deals, after the company reported higher sales and operating profit in its full-year results, but analysts cut their target prices on the stock.

Forvia announced a five-year cost-cutting project that will also target shifting its regional mix to reduce its dependency on China, which it said could impact up to 10,000 jobs.

Analysts at HSBC and Deutsche Bank both trimmed their target prices on the stock Tuesday.

John Cronin of Goodbody discusses Barclays’ earnings and the strategic overhaul, as well as the health of European and U.S. banks.

Shares of Barclays rose 5.4% after the lender announced a major operational overhaul including substantial cost cuts, asset sales and a reorganization of its business divisions, in its fourth-quarter results.

French industrial gases company Air Liquide also gained 5.4% after posting better than expected full-year operating profit and saying it had already reached its margin targets planned for 2025.

Anglo American shares fell 3% after announcing jobs cuts in its South African Amplats division on the back of falling metals prices.

— Karen Gilchrist

Equity markets have had a good start to the year, with the S&P 500 benching crossing 5,000 in the past month. However, ongoing political tensions and uncertainty over when the U.S. Federal Reserve will cut interest rates have raised questions about which sectors will perform strongly — leading a number of market players to say 2024 is a stock picker’s year.

Morningstar’s chief markets strategist, David Sekera, agrees. He said it’s “always a stock picker’s market,” but that this is even more pertinent this year.

He also named three under-the-radar stocks he likes right now.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets are set to open in negative territory Tuesday.

The U.K.’s FTSE 100 index is expected to open 9 points lower at 7,719, Germany’s DAX down 49 points at 17,039, France’s CAC down 19 points at 7,745 and Italy’s FTSE MIB down 76 points at 31,676, according to data from IG. 

Earnings are due from Barclays, InterContinental Hotels Group and Antofagasta. On the data front, euro zone current account figures for December are due to be released.

— Holly Ellyatt