European markets opened in the red on Friday.

The pan-European Stoxx 600 index was down 0.5% in early trade, with food and beverages stocks sliding 1.7% to lead losses while insurance stocks added 0.7%.

The U.K. economy flatlined in the third quarter, initial figures showed Friday.

Gross domestic product showed no growth in the the three months to the end of September, following an increase of 0.2% the previous quarter. In annual terms, third-quarter GDP was 0.6% higher than the same period in 2022.

Services sector output dropped 0.1% on the quarter but was offset by a 0.1% increase in construction output, while output in the production sector flatlined.

U.K. Chancellor of the Exchequer Jeremy Hunt said high inflation remains the “single greatest barrier to economic growth” in the country, with the consumer price index remaining at 6.7% year-on-year in September.

“The best way to sustainably grow our economy right now is stick to our plan and knock inflation on its head,” Hunt said.

“The Autumn Statement will focus on how we get the economy growing healthily again by unlocking investment, getting people back into work and reforming our public services so we can deliver the growth our country needs.”

– Elliot Smith

Britain’s FTSE 100 is seen around 42 points lower at 7,414, Germany’s DAX is set to shed around 93 points to 15,260 and France’s CAC 40 is expected to drop around 47 points to 7,067.

— Elliot Smith

Rising rates and the possibility of a recession on the horizon have created a “mixed picture” for equity markets, according to one strategist — but several companies can look forward to markedly stronger earnings growth in the next year.

“When you look at what companies are saying about next year, they’re not really being overly cautious or overly bullish … So, you get a sense that into next year, earnings will be robust in terms of steady year-on-year [growth],” Rahul Ghosh, portfolio specialist, equity division at T. Rowe Price, told “Street Signs Asia” on Thursday.

“But, if you’re looking for significant earnings expansion, I suspect, at a market level, that’s probably less likely. You really have to dig into individual companies and sectors.”

Ghosh is looking favorably at three sectors — and named some of his favorite stocks.

subscribers

— Amala Balakrishner