(ABM FN-Dow Jones) European stocks are set to open higher on Friday, ahead of the US jobs report.
IG forecasts an opening gain of 30 points for the German DAX, a 21 point plus for the French CAC 40 and a 20 point increase for the British FTSE 100.
European stocks closed higher on Thursday.
European stock markets rose on Thursday, starting the first day of the month, the quarter and the second half of the year on a positive note. The EuroStoxx 600 rose 5 percent in the past quarter and is up 13 percent since the start of the year.
“The first half of 2021 was positive for risk assets, supported by the successful rollout of vaccines and the reopening of major economies,” said Candriam market analyst Nadège Dufossé. Dufossé said Candriam is tilting its portfolio towards non-US stocks.
On a macroeconomic level, it was announced on Thursday that Eurozone manufacturing activity continued to pick up in June. The index rose from 63.1 to 63.4.
Industry also picked up further in Germany, while the growth of French industry slowed slightly. Italy also saw a fractionally lower growth rate, while Spanish growth accelerated. Activity in the United Kingdom grew at a slower pace.
German retail sales rose in May. On a monthly basis, sales in May increased by 4.2 percent, adjusted for inflation.
The unemployment rate in the eurozone fell in May from 8.1 percent in April to 7.9 percent in May.
Company news
Sodexo saw its turnover rise sharply in the past quarter and therefore raised its outlook for the entire financial year. The stock rose 2.3 percent.
Hennes & Mauritz wrote black figures in the past quarter thanks to a strong increase in turnover. However, the stock lost 1.1 percent.
In London, the Associated British Food share price gained 4.8 percent. As H&M, Primark did not have a good quarter with strong turnover growth.
Furthermore, airlines also had the wind at their backs. The share of IAG, parent company of British Airways, among others, gained 3.9 percent, the Lufthansa share became 3.0 percent more expensive and in Amsterdam the share price of Air France-KLM rose 1.4 percent.
Euro STOXX 50 4,078.89 (+0.4%)
STOXX Europe 600 455,63 (+0,6%)
DAX 15.603.81 (+0,5%)
CAC 40 6,553.82 (+0.7%)
FTSE 100 7,125.16 (+ 1.3%)
SMI 11,977.03 (+ 0.3%)
AEX 731,33 (+0,3%)
BEL 20 4,166.40 (+ 1.0%)
FTSE MIB 25.286,06 (+0,7%)
IBEX 35 8.932,30 (+1,3%)
US EQUITIES
Wall Street opens in green on Friday, according to US futures.
U.S. stocks also closed higher on Thursday.
With that, the US stock markets started the first day of the new month, the quarter, the second half of the year on a positive note. The S&P 500 closed its all-time high for the 34th time this year on Wednesday. The index has now risen for five consecutive quarters.
Stocks have hit record highs as the US economy picks up steam and the market picks up on the prospect of record corporate profits. Meanwhile, investors are less concerned that the Federal Reserve will raise interest rates to ward off higher inflation.
“There is growth, the stimulus is still there and the profits are phenomenal,” said market analyst Caroline Simmuns of UBS Global Wealth Management. She added that economic growth in the US could have peaked, leading to defensive corners of the market performing well in the coming months.
On a macroeconomic level, it was announced on Thursday that the number of first-time jobless claims in the US fell by 51,000 to 364,000 last week. Economists expected a drop to 390,000 applications in advance.
A pair of purchasing manager indices for the industry painted a mixed picture. According to Markit Economics, manufacturing in the United States grew at the same rate in June as a month earlier. The index was unchanged at 62.1. According to the Institute for Supply Management, there was a slight slowdown in growth last month. It fell from 61.2 in May to 60.6 in June,
Construction spending in the United States fell slightly against expectations in May, at 0.3 percent on a monthly basis. On an annual basis, the increase in May was 7.5 percent.
An August crude oil futures closed 2.4 percent, or $1.76, higher on the New York Mercantile Exchanges on Thursday at $75.23 after OPEC and its allies postponed their meeting on a potential easing of production cuts to Friday. .
On Friday, three publications are on the agenda in the United States on a macroeconomic level. The US jobs report and the May trade balance will be released before the fair, followed by the factory orders in May.
Company news
Drugstore chain Walgreens Boots Alliance raised its profit forecast after an 83 percent increase in quarterly profit on a 12 percent increase in sales of $34 billion. The stock fell more than 7.0 percent.
Micron Technology beat revenue and earnings expectations in the quarter and also released estimates for the current quarter that are ahead of analysts’ estimates. The stock lost about 5.5 percent.
CureVac went down in premarket trading. The German company published results of its corona vaccine, which previously seemed promising, but which appears to offer less protection than other vaccines, at only 48 percent. The stock was nearly 8.0 percent lower.
Robinhood wants users of the trading app to buy the shares of Robinhood itself. With the upcoming IPO, no less than 35 percent of the shares will be set aside for private investors, who form the company’s clientele. Robinhood has a platform that allows users to trade new stocks before the stock market starts trading.
ExxonMobil CEO Darren Woods has distanced himself from statements made by two of the company’s top lobbyists who believed they were talking to a recruiter when they said the company’s support for a carbon tax was an easy topic for discussion because such a tax will probably never come anyway. The stock rose about 0.3 percent.
Royal Dutch Shell would like to exit a joint venture with Exxon Mobil in California, according to Reuters news agency. This concerns the joint oil and gas production facility in Aera, which produces 125,000 barrels of oil and 32 million cubic feet of gas daily, accounting for 25 percent of California’s total oil and gas production.
S&P 500 index 4.319,94 (+0,5%)
Dow Jones index 34.633,53 (+0,4%)
Nasdaq Composite 14.522,38 (+0,1%)
ASIA
Asian stocks were mostly lower on Friday.
Nikkei 225 28.774,17 (+0,2%)
Shanghai Composite 3.532,23 (-1,6%)
Hang Seng 28,365.36 (-1.6%)
EVALUATE
The euro/dollar traded at 1.1846. When the US markets closed on Thursday, the currency pair still moved at 1.1844 and at the close of the European markets there was still a position of 1.1855 on the plates.
USD/JPY Yen 111,56
EUR/USD Euro 1,1846
EUR/JPY Yen 132,15
MACRO-AGENDA:
11:00 Producer prices – May (eur)
14:30 Job growth and unemployment – June (US)
14:30 Trade Balance – With def. (US)
16:00 May Factory Orders (US)
COMPANY NEWS:
– No agenda items
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
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