European markets: monitoring global caution

Cineworld shares plunge 60%

Cineworld, which operates 9,000 cinemas in 10 countries, warned that a lack of blockbusters is hurting admissions.

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British cinema chain Cineworld Group saw its shares tumble on Friday following reports that it was preparing to file for bankruptcy after failing to entice viewers back to cinemas after a pandemic lull.

The stock was down around 67% in mid-afternoon trading in London.

It comes after reports first cited in the Wall Street Journal that the company, which owns Regal Cinemas, has hired a team of attorneys and consultants to advise them on the bankruptcy process.

Cineworld is the latest victim of the movie industry, which has struggled to regain its footing after the coronavirus pandemic lockdowns, with viewers increasingly keen to stream movie releases at home.

— Karen Gilchrist

US stocks open lower

U.S. stocks opened lower on Friday, with the S&P 500 poised to break its four-week winning streak.

In early trading, the S&P fell 0.7%, while the Dow Jones Industrial Average fell 0.5%. The Nasdaq fell 1.2%.

No major economic report was expected on Friday.

— Karen Gilchrist

Pound close to behavior of emerging market currencies, says Saxo Bank strategist

The pound is showing the behaviors of an emerging market currency amid the terrible cost of living crisis, says John Hardy, head of FX strategy at Saxo Bank.

German producer prices soar

German producer prices saw their biggest jump on record, official data showed on Friday.

“Prospects for future development [of the economy] is currently noticeably dark,” the ministry said in its report. Read the full article here.

The German economy, the largest in Europe, stagnated in the second quarter.

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Schroders: UK retail figures ‘very strong’ despite double-digit inflation

Azad Zangana, senior European economist at Schroders, discusses UK retail and inflation figures this morning, providing an outlook on consumer sentiment and spending over the next 12 months.

British consumer confidence reservoirs

New data released ahead of the opening bell on Friday showed UK consumer confidence hit a new high of -44 in August. Research firm GfK said its consumer confidence index fell 3 points from the previous month.

“The index’s overall score fell three points in August to -44, the lowest since records began in 1974. All metrics fell, reflecting deep concerns as the cost of living soars A sense of exasperation about the UK economy is the main driver behind these findings,” said Joe Staton, director of client strategy at GfK.

—Matt Clinch

UK retail sales up in July

UK shoppers saw a slight increase in July, with official figures showing a 0.3% rise in retail sales on Friday.

“Sales volumes were 2.3% above their pre-coronavirus (COVID-19) levels of February 2020, but down from last year,” the ONS added in its statement.

People saw people dining outside in Soho in London in September 2021. Since Covid restrictions were lifted in the UK, people have flocked to the streets, shops and public spaces.

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Sodexo shares drop

Shares of French foodservice company Sodexo fell 2% in early trades. Broker Jefferies issued a new note on Friday morning in which it cut the stock to a “hold” from a “buy”, also reducing its price target to 88 euros from 91 euros.

CNBC Pro: Veteran strategist David Roche shares his views on the market rally

US markets have rallied from their mid-June lows in recent weeks, but strategist David Roche thinks current market support is about to run out.

Speaking to CNBC earlier this week, Roche, head of research firm Independent Strategy, said he believed the rally was “probably 75% over now.”

Pro subscribers can learn more here.

—Jenni Reid

CNBC Pro: Investing pro says ‘don’t be a hero’ in the markets

Market veteran Nancy Tengler says it’s premature to talk about a new bull market because she names the “reliable” stocks she likes right now.

“I think this rally has been great,” Tengler, CEO and chief investment officer of Laffer Tengler Investments, told CNBC’s “Squawk Box Asia” last week. “But I don’t think we’re running into a new bull market.”

She named several tech stocks that she says are “more reliable producers” — companies with proven track records of earnings and dividend growth.

Pro subscribers can read the story here.

— Zavier Ong

Here are the opening calls

Britain’s FTSE 100 is seen down around 13 points to 7,529, Germany’s DAX is expected to slip around 20 points to 13,677 and France‘s CAC 40 is expected to slip around 46 points to 6,511.

—Elliot Smith

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