European markets close slightly higher after central bank bonanza; Maersk shares up 8%

Shares of Maersk closed up almost 8% on Friday after the Danish shipping company reportedly said it would pause all container shipments through the Red Sea until further notice.

“Following the near-miss incident involving Maersk Gibraltar yesterday and yet another attack on a container vessel today, we have instructed all Maersk vessels in the area bound to pass through the Bab al-Mandab Strait to pause their journey until further notice,” the company said in a statement, according to Reuters.

— Sam Meredith

The pan-European Stoxx 600 index was back to the flatline by mid-afternoon, having given back earlier gains of around 0.5%. Mining stocks climbed 1.8% while banks dropped 0.5%.

Sectra shares surged 12% by early afternoon to lead the Stoxx 600 after the Swedish technology company posted strong half-year earnings across the board.

At the bottom of the index, fell 5.7% after the Financial Times reported that the British investment management firm is planning to raise up to £1 billion ($1,28 billion) by 2030 to buy out the businesses of retiring partner companies.

German flavor and fragrance maker Symrise also dropped 5.7% after cutting its full-year EBITDA margin guidance.

– Elliot Smith

Russia’s central bank raised interest rates for the fifth consecutive time Friday, increasing its key rate by 1 percentage point to 16%.

Governor Elvira Nabiullina said that the central bank was nearing the end of its hiking cycle, but that rates would remain high for as long as necessary as the inflation runs close to 8% year-on-year — well above its 4% target.

The bank has raised rates by 8.5 percentage points since July, including during an emergency decision in August after the ruble tumbled past 100 to the dollar and the Kremlin called for tighter monetary policy.

— Karen Gilchrist

U.K. business activity picked up in December, pushing the sterling currency higher against the dollar.

The S&P Global/CIPS flash composite purchasing managers’ survey came in at a six-month high of 51.7 in December, exceeding expectations. A number above 50 indicates expansion.

It got a boost from the services PMI figure — 52.7 this month— which also beat forecasts. The manufacturing PMI hit a two-month low, falling to 46.4.

Sterling reversed earlier losses against the dollar, trading up 0.15% at 10:40 a.m. London time.

The U.K. is likely to experience a recession next year, Thomas Watts, an investment analyst at Abrdn, told “Squawk Box Europe” Friday.

This is due to the knock-on effects of additional mortgage payments worth billions of pounds, he explained. Elevated Bank of England interest rates have a direct impact on mortgage rates in the U.K. and caused them to soar to a 15-year high earlier in the year.

“You’ll see a massive effect on consumer spending I imagine if we go through the year, which probably will tip the U.K. into recession,” Watts said.

The Bank of England is expected to begin cutting interest rates around the middle of 2024, he added.

— Sophie Kiderlin

European markets were modestly higher on Friday, on course to round out a positive week after a deluge of key policy decisions from major central banks.

The pan-European Stoxx 600 index was up 0.3% in early trade, with mining stocks adding 1.4% to lead gains while chemicals dropped 0.9%.

The European blue chip index closed Thursday’s trade up 0.9% having earlier hit its highest point since January 2022.

– Elliot Smith

Britain’s FTSE 100 is expected to add around 7 points to 7,656, Germany’s DAX is set to gain around 38 points to 16,790 and France’s CAC 40 is seen around 23 points higher at 7,589, according to IG data.

Macroeconomic uncertainty and rising interest rates may have put a dent on the performance of solar stocks this year – but one fund manager remains bullish on the long-term prospects of the sector.

“We like solar a lot because solar installations can be done anywhere – unlike wind plants. But they are an interest rate play at the moment; so, if interest rates go down – which they are at the moment – solar companies can do very well,” Steven Glass managing director and investment analyst at the Australia-headquartered Pella Funds told CNBC Pro.

And one stock stands out to him as a long-term play.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Goldman Sachs recently added a number of stocks to its lists of top picks.

Called the “Conviction List – Directors’ Cut,” the lists encompass the United States, Europe and Asia-Pacific.

Here are four of the new additions.

CNBC Pro subscribers can read more here.

— Weizhen Tan