(ABM FN-Dow Jones) European stocks are set to face a divided opening on Friday,
IG foresees an opening loss of 17 points for the German DAX, a plus of 25 points for the French CAC 40 and an increase of 18 points for the British FTSE 100.
Stock markets in Europe ended higher on Thursday.
Market analyst Michael Hewson of CMC Markets saw that the European stock markets were mainly busy processing the Federal Reserve’s interest rate decision on Thursday. The Fed made it clear on Wednesday evening that it is likely to raise interest rates in March. According to Hewson, the markets are now expecting five rate hikes in 2022.
And Powell did not take the opportunity to rule out the possibility that the Fed will raise interest rates with every decision this year or by 505 basis points at a time if necessary,” Hewson said.
The markets were able to bounce back during afternoon trading after strong growth data from the US, Hewson noted.
On a macroeconomic level, it was quiet in Europe on Thursday. Consumer confidence in Germany improved slightly in February, GfK reported. The confidence figure of 6.9 negative was a lot better than the negative 8.0 that was expected.
Company news
Deutsche Bank achieved more revenue and profit than expected in the fourth quarter and surprised with the announcement that almost all costs of the reorganization have been booked. The stock rose nearly 4.5 percent.
SAP achieved higher sales in the fourth quarter of last year, but operating profit and margins were under pressure, which was in line with preliminary figures. The stock lost 6 percent.
At EasyJet, the loss almost halved in the first quarter of the broken financial year, but the omikron variant of the corona virus does affect bookings in the short term. The share rose slightly.
The quarterly figures of STMicroelectronics were rewarded in Paris with a share increase of 2 percent. The chip manufacturer wants to invest billions in expanding its capacity.
In Paris, the price gain for the Sanofi share of more than 3 percent, along with the loss of more than 2.5 percent for the Dassault Systèmes share, was striking.
In Frankfurt, the RWE share recorded a price gain of more than 5 percent and the Delivery Hero share fell by more than 3 percent. In Amsterdam, sector competitor Just Eat Takeaway lost almost half a percent.
Euro STOXX 50 4,174.08 (+0.2%)
STOXX Europe 600 470,33 (+0,7%)
DAX 15.524,27 (+0,4%)
CAC 40 7,023.80 (+0.6%)
FTSE 100 7,554.31 (+ 1.1%)
SMI 12,176.90 (+ 0.7%)
AEX 753,79 (+0,2%)
BEL 20 4,105.45 (+ 0.6%)
FTSE MIB 26.882,47 (+1,0%)
IBEX 35 8.706,00 (+1,0%)
US EQUITIES
US futures predict a higher open on Friday. Investors can get started with Apple’s better-than-expected quarterly results. Shares rose 3.5 percent in after-hours trading on Thursday after the tech giant beat expectations on all fronts.
Wall Street closed lower on Thursday. Predominantly strong economic data provided momentum initially, but the optimism faded during the session.
The US economy grew by 6.9 percent in the fourth quarter. This was much better than the 5.5 percent forecast and a significant rebound from the previous quarter’s 2.3 percent. For the whole of 2021, US growth was 5.7 percent. Consumer spending, a key driver of growth, rose 3.3 percent in the fourth quarter.
According to market analyst Michael Hewson of CMC Markets, it appears that the US economy was able to recover well at the end of 2021.
The number of new aid applications last week was lower than expected. The figure fell from 290,000 to 260,000 instead of the expected 265,000. Demand for durable goods declined slightly in December. Upcoming home sales fell in the same month.
However, sentiment remains fragile. The Fed signaled in its rate decision Wednesday evening that rate hikes will begin in March, in order to curb inflation. According to chairman Jerome Powell, the central bank could start raising interest rates faster than it has been in the past ten years. It shows that the Fed is “in a hurry,” said John Vail of Nikko Asset Management in Tokyo. “The Fed has become serious very quickly and that is having an effect on the markets.”
The US 10-year yield rose to 1.87 percent after the interest rate decision on Wednesday, but was trading at 1.81 percent on Thursday.
Uncertainty surrounding a possible Russian invasion of Ukraine is also casting a shadow, analysts said. Russia is a major oil and natural gas exporter and energy prices continue to rise, while stock prices fall. The Fed won’t be reassured about inflation until oil prices fall again, Vail thinks.
The oil price lost some ground on Thursday after a volatile session. At a settlement of $86.61, a barrel of West Texas Intermediate became about 0.9 percent cheaper.
Company news
McDonald’s disappointed with a 13 percent increase in sales in the fourth quarter. Earnings of $2.23 per share were also slightly lower than the $2.34 analysts had expected. The stock fell half a percent.
Sherwin-Williams posted a sharply lower result in the fourth quarter. This came as no surprise. The stock lost more than 3 percent.
Comcast posted a 10 percent lower net profit in the fourth quarter. The stock lost nearly one percent.
Tesla made a record profit last quarter. CEO Elon Musk said no new models will be introduced this year. The stock fell about 11.5%.
Intel saw less profit in the fourth quarter and also underperformed expectations. The stock lost 7 percent.
Netflix rose 7.5 percent after it became known that Pershing Square Capital Management from Bill Ackman has bought more than 3 million shares in the streaming service. That would probably have cost Ackman well over a billion dollars.
Pfizer won 1.5 percent after its corona pill Paxlovid received a positive review in the European Union.
Apple posted higher-than-expected revenue in the quarter, while iPhone sales also exceeded the market’s forecast. Shares bounced up more than 5% after the close of trading.
S&P 500 index 4.326,51 (-0,5%)
Dow Jones index 34.160,78 (-0,02%)
Nasdaq Composite 13.352,78 (-1,4%)
ASIA
Asian stocks were mostly higher on Friday.
Nikkei 225 26.742,31 (+2,2%)
Shanghai Composite 3.406,63 (+0,4%)
Hang Seng 23,621.62 (-0.8%)
EVALUATE
The euro/dollar was trading at 1.1154 this morning. At the close of the US markets on Thursday, the currency pair moved at 1.1146.
USD/JPY Yen 115,41
EUR/USD Euro 1,1154
EUR/JPY Yen 128,73
MACRO-AGENDA:
06:30 Producer Awards – December (NL)
06:30 Producer confidence – January (NL)
07:30 Economic growth – Fourth quarter vpg. (fra)
10:00 Money supply – December (eur)
11:00 Consumer confidence – January def. (EUR)
11:00 Economic growth – Fourth quarter vpg. (Call)
11:30 Inflation – January (Bel)
14:30 Personal Income and Spending – December (US)
14:30 Labor Costs – Fourth Quarter (US)
16:00 Consumer Confidence Michigan – January def. (US)
COMPANY NEWS:
07:00 UniCredit – Fourth Quarter Figures (Ita)
13:00 Caterpillar – US Fourth Quarter Figures
13:00 Colgate-Palmolive – US Fourth Quarter Figures
13:00 Chevron – US Fourth Quarter Figures
Bron: ABM Financial News
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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