(ABM FN-Dow Jones) The Amsterdam stock exchange will open higher on Wednesday. Futures on the AEX are trading up to 0.8 percent in the green more than half an hour before the opening gong. On Tuesday, the main indicator already ended 0.1 percent higher at 774.48 points.
European stock markets are likely to open higher on Wednesday, despite Wall Street closing convincingly higher on Tuesday aided by corporate data.
According to LPL Financial, there is a constant battle between the bears and bulls. “For now, the bulls seem to be winning the day, aided by corporate data and the picture of cooling inflation,” LPL analysts said.
On the other hand, there are also many concerns, they said, pointing, among other things, to the ongoing discussions about the US debt ceiling.
Investors hope that the company’s results and expectations justify the high stock prices. The stock markets are at their highest levels since April 2022, with the S&P 500 and Nasdaq already adding 19 and 37 percent in value this year.
Quarterly figures from superpowers Bank of America and Morgan Stanley provided optimism on Tuesday.
“Investor sentiment remains resilient,” said José Torres of Interactive Brokers. “Banks continue to believe that consumers have their finances in order.”
The Federal Reserve will meet next week to discuss interest rate policy. The central bank is then expected to raise rates by 25 basis points, but the big question is what the Fed will do next.
Investors are also closely monitoring the latest developments in the consumer market. Retail sales for June showed only a limited increase on Tuesday.
The euro/dollar was quoted at 1.1220. At the close of the US stock markets on Tuesday, the currency pair was still trading at 1.1230 and at the close of the European stock markets there were 1.1237 on the boards.
Oil prices closed higher on Tuesday after two days of declines. An August futures for a barrel of West Texas Intermediate crude closed 2.2 percent higher at $75.75 a barrel on the New York Mercantile Exchange. Oil prices fell on Monday after weak economic data from China and the restart of oil production in Libyan oil fields previously closed by activists.
Oil prices were slightly lower in Asian trading this morning.
Company news
In the second quarter, ASML posted a turnover of 6.9 billion euros with a gross margin of 51.3 percent. Furthermore, ASML announced that it expects turnover of 6.5 to 7.0 billion euros for the current third quarter, with a gross margin of approximately 50 percent. For the whole of 2023, ASML is aiming for turnover “towards 30 percent”. ASML previously spoke of a turnover growth of more than 25 percent.
Trader Bert van der Pol of Today’s Group pointed to a real estate report from BNP Paribas Exane. In this, the advice for WDP was increased from Underperform to Neutral with a price target of 27.00 euros. BNP also started following CTP with an Outperform advice and a price target of EUR 15.00. VGP just received an Underperform advice with a price target of 85.00 euros, according to Van der Pol.
Wall Street closing positions
The S&P 500 rose 0.7 percent to 4,554.98 points on Tuesday, the Dow Jones index rose 1.1 percent to 34,951.93 and the technology exchange Nasdaq was worth 0.8 percent more at 14,353.64 points.
Bron: ABM Financial News
2023-07-19 06:31:35
#Higher #opening #AEX #expected
