(ABM FN-Dow Jones) The European stock markets will open for a predominantly slightly higher opening on Tuesday.
IG forecasts an opening gain of 36 points for the German DAX and a plus of 6 points for the French CAC 40. The British FTSE 100 is expected to open 6 points lower.
Stock markets in Europe ended significantly lower on Monday.
European markets started the new week on a weak note, with the DAX and FTSE 100 plunging below their April lows, said market analyst Michael Hewson of CMC Markets. The biggest losses were visible among commodities funds, but tech stocks also struggled again.
“Markets have started the week with restraint as lockdowns in China and looming US inflation data keep investors nervous about the outlook,” IG analysts said. “China’s zero-corona policy continues to worry investors, who fear the impact of the lockdowns on economic growth.”
Chinese exports grew much less in April than a month earlier, while imports remained stable, resulting in a larger-than-expected trade surplus.
On a macroeconomic level, Europe was otherwise quiet on Monday.
Company news
Commodity stocks were under pressure. Rio Tinto lost more than 4 percent and Glencore even almost 6 percent. Shell and BP lost 3 to 5 percent.
PostNL was hit in Amsterdam after what analysts consider disappointing quarterly figures, mainly due to the performance of the parcel division. PostNL lowered its outlook for 2022 by 16 percent. KBC Securities and Degroof Petercam have already lowered their price targets. The share fell almost 13 percent.
In Brussels, fellow sector Bpost lost one percent. Bpost warned about headwinds last week. On Friday evening, Jefferies lowered the price target for Bpost.
JDE Peet’s has bought its own shares for 500 million euros from one of its two major shareholders. The stock rose more than 2 percent.
While Deutsche Bank raised the price target for Aperam, Jefferies lowered the price target for the stainless steel manufacturer. Both analysts concluded that Aperam delivered a strong performance in the first quarter. The stock lost just over half a percent.
Infineon fell more than 6 as the German chip maker raised its outlook on Monday. Delivery Hero also stood out in Frankfurt, with a loss of more than 13 percent. There were hardly any risers in the DAX. E.ON managed to rise one percent.
Alstom did good business in Paris, with a plus of almost 2 percent. TotalEnergies lost almost 5 percent and ended up at the bottom of the CAC 40.
In Amsterdam, it was tech stocks that finished at the bottom. The ‘chippers’ ASMI, ASML and Besi lost approximately 7 percent. Just Eat Takeaway even fell 8 percent.
Euro STOXX 50 3.530,58 (-2,7%)
STOXX Europe 600 417,46 (-2,9%)
DAX 13.380,67 (-2,2%)
CAC 40 6.086,02 (-2,8%)
FTSE 100 7.216,58 (-2,3%)
SMI 11.444,18 (-2,4%)
AEX 666.17 (-2.4%)
BEL 20 3.883,77 (-3,4%)
FTSE MIB 22.832,56 (-2,7%)
IBEX 35 8.139,30 (-2,2%)
US EQUITIES
US futures predict a higher open on Tuesday.
Wall Street again ended up significantly lower on Monday, after it was also the case at the end of last week.
Fears of a slowdown in growth, high inflation and central banks raising their policy rates are currently determining the stock market mood. Meanwhile, bond yields are rising. The US 10-year yield peaked above 3.20 percent earlier on Monday, but then fell back to 3.03 percent.
“Fear dominates the stock market mood, which is reflected in the sharply increased price volatility and negative sentiment indicators. Outside the commodities markets, places for investors to ‘hide’ are scarce,” said investment manager Simon Wiersma of ING.
“Despite everything, the US economy is still doing well,” said the market expert, who referred, among other things, to a solid jobs report, which appeared on Friday.
“The US stock market is quite expensive, especially technology stocks, the market doesn’t know how high the Fed needs to go to contain inflation, and we have a sense of a global slowdown,” said Sebastien Galyt of Nordea Asset Management. “There are a lot of negative factors active in the market.”
Important inflation data from the United States will be released later this week; consumer prices on Wednesday and producer prices a day later. Consumer price developments in April are expected to have increased by 8.1 percent year-on-year, with core inflation at 6.0 percent. In March, inflation in the US still stood at 8.5 percent and core inflation at 6.5 percent.
Monday was calm on the macroeconomic front. US wholesale inventories rose 2.3 percent in March, in line with expectations.
WTI oil was 6 percent cheaper per barrel on Monday compared to Friday. Monthly reports from OPEC and the International Energy Agency will be released later this week.
Company news
Tech stocks were under pressure as a result of the global sell-off. Tesla and Nvidia lost up to 9 percent. Oil giants Chevron and Exxon Mobil lost about 7 to 8 percent.
Duke Energy performed below earnings expectations in the first quarter, but sales were well ahead of analysts’ forecasts. Shares of the utility company fell slightly.
BioNTech rose 3 percent. The pharmaceutical company recorded a significant increase in sales in the first quarter, partly thanks to the sale of the corona vaccine that it has developed together with Pfizer.
Food producer Tyson Foods benefited from price increases last quarter. The stock rose about 2.5 percent.
S&P 500 index 3.991,24 (-3,2%)
Dow Jones index 32.245,70 (-2,0%)
Nasdaq Composite 11.623,25 (-4,3%)
AZIE
Asian stocks are mostly lower on Tuesday. The Hang Seng was closed on Monday and opens its doors again today.
Nikkei 225 26.097,79 (-0,8%)
Shanghai Composite 3.009,22 (+0,2%)
Hang Seng 19.484,81 (-2,8%)
VALUE
The euro/dollar was trading at 1.0573 this morning. As the US markets closed on Monday, the currency pair moved at 1.0560.
USD/JPY Yen 130,41
EUR/USD Euro 1,0573
EUR / JPY Yen 137.90
MACRO-AGENDA:
06:30 Inflation – April (NL)
06:30 Industrial production – March (NL)
11:00 ZEW Economic Sentiment – May (Ger)
11:00 Industrial Production – March (Bel)
12:00 SME Business Confidence – April (US)
COMPANY NEWS:
00:00 Philips – Annual Meeting
13:00 Peloton Interactive – Third Quarter Figures (US)
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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