Beeld: Deutsche Boerse AG
(ABM FN) European stock markets are heading for a lower open on Tuesday, though losses will be modest.
IG predicts an opening loss of 10 points for the German DAX, a minus of 4 points for the French CAC 40 and a drop of 7 points for the UK FTSE 100.
European stock markets remained close to home on Monday. Investors are wary ahead of inflation data from the US and China later this week. According to IG analysts, these figures are “important tests for the market”.
On a macroeconomic level, it was announced on Monday that German manufacturing production fell by 1.5 percent on a monthly basis. The rest of the macro calendar was empty.
Company news
In Amsterdam, PostNL rose 9.5 percent, after better-than-expected quarterly figures. The postal company thereby increased the outlook for the whole of 2023. In Brussels, sector peer BPost rose 2.1 percent.
In Frankfurt, Rheinmetall led the way with a share price gain of 2.3 percent. Siemens Energy dangled at the bottom with a loss of 6.3 percent. The company lowered its outlook for 2023 on Monday, after the manufacturer indicated at the end of June that expectations for this year were no longer feasible. The problems are part of Siemens Gamesa.
In London, homebuilder Taylor Wimpey was under pressure. The stock lost 0.8 percent. “The industry is facing very different market conditions today, after years of strong real estate prices, cheap mortgages and government support for first-time buyers,” AJ Bell said in a statement.
In Paris, Thales won 1.1 percent.
Euro STOXX 50 4.337,50 (+0,1%)
STOXX Europe 600 459,68 (+0,1%)
DAX 15.950,76 (0,0%)
CAC 40 7.319,76 (+0,1%)
FTSE 100 7.554,49 (-0,1%)
SMI 11.107,47 (+0,1%)
AEX 772.13 (-0.1%)
BEL 20 3.716,02 (-0,4%)
FTSE MIB 28.547,61 (-0,1%)
IBEX 35 9.358,60 (-0,1%)
AMERICAN SHARES
Wall Street opens lower on Tuesday, after closing higher on Monday, according to US futures.
Wall Street recouped some of last week’s losses on Monday as the earnings season continues and the market looks to US inflation data later this week to determine whether the Fed’s tightening policy should continue.
An increase in treasury rates led to pressure last week, as some analysts say it made equities relatively less attractive. The 10-year rate was up 4 basis points on Monday at 4.086 percent.
“The gap between the S&P 500’s expected earnings yield and 10-year Treasury yields has narrowed to about 1 percent. We haven’t seen this level since the tech bubble burst in 2002,” said SPI Asset Management.
“Investors will be the US [treasury]monitor interest rates closely as an increase could hurt equity markets, especially if this week’s inflation numbers beat forecasts,” SPI added.
On a macroeconomic level, it was announced Monday that consumer credit in the US increased by $17.9 billion in June, compared to an increase of $9.4 billion in May.
The September futures for a barrel of West Texas Intermediate crude closed $0.88 lower on Monday at $81.94 on the New York Mercantile Exchange.
Company news
The earnings season in the US is now largely behind us. According to Bob Homan of ING, a profit drop of around 9 percent was expected in America for the second quarter, “but then the figures are better than expected by about 5 to 6 percent”. Compared to last year, profits fell mainly in the energy and IT sectors. “But recovery is expected later this year,” said Homan. There seems to be a small drop in profit in the third quarter, but a recovery follows in the fourth quarter. “That also has to do with the currency effect.” In 2022, the dollar was “very strong” in the second half of the year. As a result, the profits of American companies will rise again at the end of 2023.
Berkshire Hathaway has seen earnings rise in the second quarter, figures from Warren Buffett’s investment vehicle showed on Saturday. Net income rose year-over-year from a loss of $43.6 billion to a profit of $35.9 billion. Last year, Berkshire suffered a loss on its investments of more than $53 billion. Last quarter, this was a profit of almost 26 billion dollars. The stock rose about 3.6 percent.
BioNTech has seen a sharp drop in revenue in the second quarter of 2023 and posted a net loss. The stock lost about 7.4 percent.
Tyson Foods saw sales fall slightly in the past quarter and suffered a loss. Tyson announced the closure of 4 factories. The share was about 4.4 percent lower.
Campbell Soup has made an offer for Sovos Brands worth approximately $2.7 billion. Campbell Soup is willing to pay $23.00 per share in cash and expects to realize approximately $50 million in synergy benefits. Campbell shares fell about 1.8 percent.
S&P 500 index 4.518,44 (+0,9%)
Dow Jones index 35.473,13 (+1,2%)
Nasdaq Composite 13.994,40 (+0,6%)
ASIA
Asian stock markets were divided on Tuesday. China reported that exports fell by double digits again in July.
Nikkei 225 32.321,85 (+0,2%)
Shanghai Composite 3.269,29 (+0,0%)
Hang Seng 19.270,34 (-1,4%)
VALUE
The euro/dollar was trading at 1.0990. At the close of the American stock markets on Monday, the currency pair was still trading at 1.1004 and at the close of the European stock markets there was still a position of 1.1002.
USD/JPY Yen 143,24
EUR/USD Euro 1,0990
EUR/JPY Yen 157,44
MACRO-AGENDA:
04:00 Trade balance – July (Chi)
06:30 Inflation – July (NL)
08:00 Inflation – July (Ger)
14:30 Trade balance – June (US)
4:00 PM Wholesale Stocks – June (US)
COMPANY NEWS:
07:00 Bayer – Figures second quarter (Germany)
13:00 Eli Lilly – US Second Quarter Figures
1:00 PM UPS – Second Quarter (US) Figures
10:00 PM AMC Entertainment – US Second Quarter Figures
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.
2023-08-08 05:05:00
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