(ABM FN-Dow Jones) The European stock markets will open slightly higher on Monday, after a positive close on Wall Street on Friday.
IG forecasts an opening gain of 5 points for the German DAX and a minus of 7 points for the French CAC 40. The British FTSE looks set to open 11 points higher.
The stock markets in Europe ended Friday divided, but without major outliers.
“The reaction in European markets to the US jobs report was relatively muted, which is perhaps not surprising given the strong upward moves we saw earlier in the week,” market analyst Michael Hewson of CMC Markets explained the sentiment. He also saw profit taking towards the weekend.
On a weekly basis, the Stoxx Europe 600 and German DAX rose more than 3 percent last week, while bond yields fell.
“The sharp fall in bond yields and a less negative geopolitical outlook helped boost sentiment in recent days,” Hewson said.
On a macroeconomic level, it was announced on Friday that the Chinese services sector grew faster in October. The British services sector actually shrank less sharply in October.
Exports in Germany fell more than expected in September and imports also fell sharply, while unemployment in the euro zone increased slightly in September.
Company news
Germany’s Siemens Energy was again the biggest gainer in Frankfurt on Friday, with a gain of almost 9 percent. Furthermore, shares of car manufacturers were in demand after solid results from BMW and retailer Zalando also finished solidly in the green.
Real estate also did well again in the DAX, with a plus of almost 8 percent for Vonovia. In Paris, Unibail-Rodamco-Westfield rose more than 3 percent.
Insurers had a difficult day on the German stock exchange, with losses of more than 2 percent for Hannover Re and Munich Re. AXA lost more than one percent in Paris.
The leader in the CAC 40 was payment company Worldline, with a profit of 6 percent. Sector peer Adyen rose almost 6.5 percent in Amsterdam.
Oil giants were under pressure. Last on the French stock exchange was TotalEnergies, with a loss of 3.5 percent. Shell lost almost 4 percent and BP about 2 percent.
AP Moller-Maersk plans to cut more than 10,000 jobs in a bid to rein in costs as the Danish container company faces lower demand, lower freight rates and inflationary pressures. The stock closed 17 percent lower in Copenhagen.
Euro STOXX 50 4.177,27 (+0,2%)
STOXX Europe 600 444,24 (+0,2%)
DAX 15.189,25 (+0,3%)
CAC 40 7.047,50 (-0,2%)
FTSE 100 7.417,73 (-0,4%)
SMI 10.579,67 (-0,1%)
AEX 736.31 (+0.04%)
BEL 20 3.503,52 (+1,4%)
FTSE MIB 28.674,83 (+0,7%)
IBEX 35 9.293,90 (+0,4%)
US STOCKS
Wall Street will have a green opening on Monday.
The American stock markets ended higher on Friday after a strong week for the New York indexes. On a weekly basis, the S&P 500 rose about 6 percent and Nasdaq even more than 6 percent. The Dow also rose more than 5 percent on a weekly basis.
“After a weak October, the American stock markets are [november] off to a good start,” said investment specialist Justin Blekemolen of online broker Lynx.
The American jobs report received a lot of attention on Friday. In October, the United States added 150,000 jobs. Economists expected a job growth of 170,000. The average hourly wage increased by 4.1 percent on an annual basis, compared to growth of 4.2 percent a month earlier. Unemployment rose from 3.8 to 3.9 percent.
Rabobank market analyst Philip Marey said the report was “a disappointment overall, but with this report on the table a rate hike at the Fed’s next policy meeting on December 13 becomes less likely,” Marey said.
Further interest rate increases by the Federal Reserve are hardly priced in by the market after the interest rate decision and jobs report. A small majority of the market expects the first interest rate cut in May 2024, according to the current FedWatch Tool from CME Group.
“Of course it can never be ruled out, but I think the most likely scenario is that we are done with rate hikes,” said Moody’s chief economist Mark Zandi.
JPMorgan Chase CEO Jamie Dimon warned, however, that it remains possible the Fed will raise interest rates by another 75 basis points due to more persistent inflation. According to him, the business world must be prepared for such a ‘worst-case’ scenario.
The US ten-year yield fell by more than 30 basis points last week to approximately 4.52 percent on Friday evening.
WTI oil cost just over $80 on Friday, making it almost 2.5 percent cheaper than Thursday. On a weekly basis, WTI became 5 percent cheaper.
Company news
Apple, the world’s most expensive company by market value, fell half a percent after the tech giant opened its books after hours on Thursday. The figures were not disappointing, but the outlook was somewhat cautious. Apple did not formally provide an outlook, but in the note to analysts, chief financial officer Luca Maestri said he expected sales in the current quarter to be comparable on an annual basis, and this was a disappointment, as analysts expected sales growth of five percent in the year-to-date. most important quarter for Apple, with the holidays.
Restaurant Brands International, parent company of Burger King, achieved higher turnover in the third quarter, although net profit was under pressure. The stock fell almost 2 percent.
Expedia closed almost 19 percent higher after better-than-expected figures and the announcement of a $5 billion share buyback program.
Shares of payments company Block, formerly known as Square, rose nearly 11 percent after the company raised its full-year guidance and beat expectations in the third quarter.
S&P 500 index 4.358,34 (+0,9%)
Dow Jones index 34.061,32 (+0,7%)
Nasdaq Composite 13.478,28 (+1,4%)
ASIA
The Asian stock markets traded exuberantly higher on Monday.
Nikkei 225 32.645,23 (+2,2%)
Shanghai Composite 3.052,44 (+0,7%)
Hang Seng 17.936,18 (+1,5%)
VALUE
The euro/dollar was trading at 1.0735 this morning. On Friday evening the currency pair was trading at 1.0726.
USD/JPY Yen 149,52
EUR/USD Euro 1,0735
EUR/JPY Yen 160,52
MACRO-AGENDA:
01:30 Purchasing managers index services – October final. (Yap)
08:00 Factory orders – September (Germany)
09:15 Purchasing managers index services – October (Spa)
09:45 Services Purchasing Managers Index – October (Ita)
09:50 Purchasing managers index services – October final. (Fra)
09:55 Purchasing managers index services – October final. (Gld)
10:00 Purchasing managers index services – October final. (EUR)
COMPANY NEWS:
07:00 PostNL – Third quarter figures
08:00 Ryanair – Half year figures (Irish)
22:00 NXP – Third quarter figures (NL)
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.
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2023-11-06 06:03:00
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