Image: ABM Financial News
(ABM FN-Dow Jones) The European stock markets are expected to open slightly lower on Monday. IG Markets forecasts an opening loss of 35 points for the German DAX, a minus of 12 points for the French CAC 40 and a drop of 6 points for the UK FTSE 100.
The European stock markets closed even higher on Friday.
The market saw a series of mixed business results on Friday as it awaits central bank interest rate decisions next week.
Societe Generale said both the Federal Reserve and the European Central Bank are ready to raise rates next week and keep the door open for more. “The Fed will likely maintain its aggressive stance after the rate hike,” the bank said.
Meanwhile, the ECB will most likely keep the door open for a rate hike in September, Societe Generale added.
On a macroeconomic level, UK retail sales rose 0.7 percent month on month in June. Year-over-year, sales were down 1.0 percent.
Company news
SAP has revised its outlook for full-year 2023 operating profit slightly upwards, but became more negative on the cloud business. For 2023, SAP expects an operating profit at constant exchange rates between EUR 8.65 billion and EUR 8.95 billion, compared to a range of EUR 8.6 to EUR 8.9 billion previously assumed. The revenue expectation for the cloud activities was lowered somewhat. Turnover and profitability rose sharply in the second quarter. The stock fell 4.2 percent.
Delivery Hero has acquired the remaining 37 percent stake in Hungerstation for $297 million. The stock gained 0.8 percent.
In Paris, L’Oreal gained 2.5 percent, Hermes rose 1.9 percent, while Thales lost 4.5 percent.
In Frankfurt, Sartorius led the way with a profit of 7.2 percent. Zalando won 2.8 percent. Heidelberg fell 1.6 percent.
Euro STOXX 50 4.391,41 (+0,4%)
STOXX Europe 600 465,40 (+0,3%)
DAX 16.177,22 (-0,2%)
CAC 40 7.432,77 (+0,7%)
FTSE 100 7.663,73 (+0,2%)
SMI 11.207,38 (+0,1%)
AEX 773.75 (+0.5%)
BEL 20 3.797,75 (+0,6%)
FTSE MIB 28.855,09 (+0,1%)
IBEX 35 9.571,50 (+0,6%)
US stocks
Wall Street opens neutral according to US futures.
The US stock markets closed flat on Friday
Wall Street was trading higher earlier in the day, signaling a positive finish to the week and stabilization in the market following a tech-led selloff in the previous session. As the trading day progressed, the focus shifted to next Wednesday’s Federal Reserve interest rate decision, causing the market to see past gains evaporate.
“The Fed will resume its tightening policy on July 26. Inflation is declining but remains well above target and with a tight labor market and resilient activity, Fed officials may feel unable to take any risks. The Fed will reiterate the prospect of further hikes, but we doubt it will continue,” ING said.
The euro/dollar was quoted at 1.1123. At the start of the trading day in New York, the currency pair was still moving at 1.1130 and around the close of the US stock markets on Thursday, the level was 1.1128.
September futures for a barrel of West Texas Intermediate crude closed 1.9 percent, or $1.42, higher on Friday at $77.07 on the New York Mercantile Exchange.
On the macro-economic level, two publications are scheduled for Friday. The Chicago Fed Index will be released premarket, followed by the July Composite Purchasing Managers Index later in the day.
Company news
Netflix fell about 2.6 percent on Friday, while Tesla lost about 0.7 percent. A day earlier, both funds closed 9 to 10 percent lower after quarterly results.
Johnson & Johnson was a clear riser on Thursday after raising the outlook. On Friday, the share was more than 1.0 percent higher.
PPG Industries has raised its full-year outlook after posting record second-quarter revenue. This was evident from the figures of AkzoNobel’s competitor late on Thursday evening. The stock closed almost flat.
American Express increased sales by 12 percent in the second quarter as Americans continue to spend more on travel, entertainment and restaurants. This was apparent from the quarterly figures of the credit card company on Friday, which maintained its outlook. Sales, however, disappointed. The stock lost about 3.6 percent.
S&P 500 index 4.536,34 (0,0%)
Dow Jones index 35.227,69 (0,0%)
Nasdaq Composite 14.032,81 (-0,2%)
ASIA
Asian stock markets were mixed, with Japan’s Nikkei up 1.2 percent and China’s Shanghai Composite flat, while Hong Kong was up 1.4 percent.
Nikkei 225 32.695,91 (+1,2%)
Shanghai Composite 18.808,59 (+0,1%)
Hang Seng XX.XXX,XX (-1,4%)
VALUE
The euro/dollar was quoted at 1.1121. At the close of the US stock markets on Friday, the currency pair was still trading at 1.1123 and at the close of the European stock markets there was still a position of 1.1120.
USD/JPY Yen 141,45
EUR/USD Euro 1,1121
EUR/JPY Yen 141,47
MACRO-AGENDA:
00:00 Prices existing owner-occupied homes – June (NL)
01:30 Composite Purchasing Managers Index – July (Jap)
09:15 Composite Purchasing Managers Index – July (Fra)
09:30 Composite Purchasing Managers Index – July (Ger)
10:00 Composite Purchasing Managers Index – July (eur)
10:30 Composite Purchasing Managers Index – July (UK)
14:30 Chicago Fed index – Juni (VS)
15:45 Composite Purchasing Managers Index – July (US)
COMPANY NEWS:
08:00 Ryanair – Q1 figures (UK)
08:00 Vodafone – Q1 figures (UK)
22:00 NXP Semiconductors – US Second Quarter Results
Bron: ABM Financial News
ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
2023-07-24 05:11:00
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