Image: EC
(ABM FN-Dow Jones) The European stock markets will open lower on Monday. IG Markets forecasts an opening loss of 55 points for the German DAX, a minus of 33 points for the French CAC 40 and a drop of 33 points for the UK FTSE 100.
European stock markets closed mostly lower on Friday.
European stock markets fluctuated between slight gains and losses throughout the trading day on Friday, following a positive kick-off to the US earnings season, where a trio of major US banks posted better-than-expected results, including JPMorgan Chase, Wells Fargo and Citigroup.
Falling US import and export prices on Friday confirmed the view that US inflation is slowing, although expectations for a rate hike from the Fed at the next policy meeting in two weeks have fallen only marginally. The probability of an interest rate hike is still estimated at almost 90 percent.
With the Fed entering its blackout period ahead of its next meeting tomorrow, CMC Markets market analyst Michael Hewson says there are few signs that last week’s macro data has influenced the US central bank’s view that between now and year-end are likely to require multiple rate hikes.
On a macroeconomic level, it was announced on Friday that exports in the eurozone rose by 2.9 percent in May, while imports fell by 0.1 percent. This resulted in a trade deficit of 0.3 billion euros, compared to a deficit of 30.3 billion euros a year earlier.
Company news
Burberry saw comparable store sales increase in the fiscal first quarter and maintained its full-year outlook. The stock rose 1.0 percent.
Nokia has issued a sales warning for the whole of 2023 with the preliminary results for the second quarter. The share lost 9.4 percent.
Ericsson suffered a loss in the second quarter of this year, but saw its turnover increase. The share was more than 10.0 percent lower.
On the Paris stock exchange, Hermes International gained 1.7 percent, LVMH also rose 1.7 percent and EssilorLuxottica was 1.0 percent higher. TotalEnergies lost 2.6 percent.
In Frankfurt, Commerzbank led with a profit of 3.0 percent, while Brenntag fell 3.4 percent.
Euro STOXX 50 4.400,11 (+0,2%)
STOXX Europe 600 460,83 (-0,1%)
DAX 16.105,07 (-0,2%)
CAC 40 7.374,54 (+0,1%)
FTSE 100 7.434,57 (-0,1%)
SMI 11.110,19 (+0,8%)
AEX 778.93 (+0.5%)
BEL 20 3.563,35 (-0,2%)
FTSE MIB 28.663,30 (-0,4%)
IBEX 35 9.438,30 (-0,4%)
AMERICAN SHARES
Wall Street opens lower, according to US futures.
US stock markets closed lower on Friday.
Wall Street initially relied on better-than-expected quarterly figures from three major US banks and optimism about the US economy on Friday.
JPMorgan Chase, Wells Fargo and Citigroup kicked off earnings season on Friday and posted better-than-expected results.
Meanwhile, the US economy has proved resilient despite higher interest rates, raising hopes that the Federal Reserve can contain inflation without triggering a recession.
“US macro data is encouraging and the likelihood of the Fed targeting a soft landing increases as the data shows resilient growth and declining inflation,” said UBS.
During the second half of the trading day, the market saw its gains evaporate.
On a macroeconomic level, it was announced that US import prices fell 0.2 percent month on month in June, while export prices fell 0.9 percent. On an annual basis, import prices were 6.1 percent lower in June and export prices 12.0 percent lower.
US consumer confidence in the economy improved in July. The consumer confidence index rose from 64.4 to 72.6. The inflation expectation for the next 12 months was 3.4 percent, from 3.3 percent at the end of June, while the inflation expectation for the next 5 years was between the range of 2.9 and 3.1 percent.
August futures for a barrel of West Texas Intermediate crude closed 1.9 percent, or $1.47, lower on Friday at $75.42 on the New York Mercantile Exchange. On a weekly basis, the oil price closed more than 2.0 percent higher.
On a macroeconomic level, only the Empire State index from July is scheduled for Monday in the US.
Company news
JPMorgan Chase returned to profit in the quarter and outperformed analysts’ expectations on the back of sharply increased revenues. The outlook also went up.
Citigroup also outperformed expectations in the second quarter of 2023, as did Wells Fargo. All three banks had to put more money in the strop pot.
JPMorgan rose about 0.4 percent, Citigroup lost about 4.0 percent and Wells Fargo was about 0.4 percent lower.
BlackRock posted higher-than-expected earnings last quarter, while assets under management also rose faster than the market had predicted. The stock fell about 1.7 percent.
UnitedHealth delivered better-than-expected results in the second quarter and raised its full-year outlook. The stock gained more than 7.0 percent.
Nikola rose another 60 percent on Thursday after an important assignment was announced. The share was 1.8 percent lower on Friday.
Roivant Sciences rose about 0.8 percent after The Wall Street Journal reported that the company was in talks to sell an investigational drug for the treatment of ulcerative colitis and Crohn’s disease to Roche in a deal that could be valued at more than $7 billion.
Microsoft received some good news in the US earlier this week regarding the acquisition of Activision Blizzard. On Friday, the British regulator reported that the deadline for the investigation into the acquisition has been extended. Microsoft and Activision Blizzard each rose about 0.7 percent.
S&P 500 index 4.505,42 (-0,1%)
Dow Jones index 34.509,03 (+0,3%)
Nasdaq Composite 14.113,70 (-0,2%)
ASIA
Asian stock markets were lower, with Japan’s Nikkei losing 0.1 percent and China’s Shanghai Composite losing 1.2 percent. The stock exchange in Hong Kong was closed on Monday as a precaution due to a threatening typhoon.
Furthermore, the Chinese Bureau of Statistics announced on Monday morning that the Chinese economy grew by 6.3 percent in the second quarter compared to a year earlier, which was worse than the 7.3 percent expected.
The unemployment rate for people living in cities was expected to be 5.2 percent in June.
Retail sales for June rose 3.1 percent, slightly less than the expected 3.2 percent. Industrial production for June rose by 4.4 percent from a year ago, better than the forecast of 2.7 percent.
Nikkei 225 32.391,26 (-0,1%)
Shanghai Composite 3.199,17 (-1,2%)
VALUE
The euro/dollar was quoted at 1.1223. When the American stock markets closed on Friday, the currency pair was still trading at 1.1228 and when the European stock markets closed, there was still a position of 1.1242.
USD/JPY Yen 138,64
EUR/USD Euro 1,1223
EUR/JPY Yen 155,59
MACRO-AGENDA:
04:00 Economic Growth – Second Quarter (Chi)
04:00 Retail Sales – June (Chi)
04:00 Industrial Production – June (Chi)
14:30 Empire State index – Juli (VS)
COMPANY NEWS:
– No agenda items
Bron: ABM Financial News
The editors of follow from Beursplein 5 ABM Financial News developments on the stock exchanges, and the Amsterdam stock exchange in particular, closely. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
2023-07-17 05:27:00
#European #stock #markets #expected #open
