(ABM FN-Dow Jones) The European stock markets will open lower on Thursday, following the interest rate decision of the US Federal Reserve on Wednesday evening.
IG predicts an opening loss of 158 points for the German DAX and a minus of 70 points for the French CAC 40. The British FTSE looks set to open 73 points lower.
European stock markets closed higher on Wednesday in the run-up to the interest rate decision in the US.
This week, the Swedish Riksbank, the Bank of Japan, the Bank of England and the Turkish central bank, among others, will make an interest rate decision.
On Wednesday morning it was announced that German producer prices had fallen by as much as 12.6 percent in August compared to a year ago. British producer prices fell by 2.3 percent year on year in August. In the UK, annual inflation stood at 6.7 percent in August, compared to 6.8 percent a month earlier. The expectation for this was 7.0 percent. Core inflation fell from 6.9 to 6.2 percent, compared to expectations of 6.8 percent.
In the US, weekly oil inventories have fallen by more than 2 million barrels. Nevertheless, the oil price fell and a barrel of Brent oil became 0.5 percent cheaper at $ 93.90. On Tuesday, annual records were further tightened above $95 per barrel.
Company news
In Frankfurt, Sartorius, Symrise, Zalando and Porsche managed to add between 2.8 and 4.6 percent, while Rheinmetall lost one percent.
In Paris, Unibail Rodamco and Stellantis added more than 3 percent. Air Liquide and Thales each lost 1.6 percent.
In Brussels, UCB and Aedifica ended the day on a positive note with share price increases of 3.6 and 2.2 percent. AB Inbev, on the other hand, lost 0.7 percent.
In Amsterdam, DSM Firmenich managed to gain more than 4 percent and ASMI had to give up ground again and fell 2.5 percent.
Euro STOXX 50 4.275,80 (+0,8%)
STOXX Europe 600 460,90 (+1,0%)
DAX 15.781,59 (+0,8%)
CAC 40 7.330,79 (+0,7%)
FTSE 100 7.731,65 (+0,9%)
SMI 11.154,11 (+0,8%)
AEX 738.32 (+0.5%)
BEL 20 3.711,00 (+0,9%)
FTSE MIB 29.229,30 (+1,6%)
IBEX 35 9.651,50 (+1,3%)
US STOCKS
Wall Street is set for a lower opening on Thursday.
US stock markets closed lower on Wednesday after the Fed kept interest rates unchanged, but is expected to cut rates more slowly in 2024 than expected in June.
As expected, interest rates remained unchanged at 5.25 to 5.50 percent. Market analyst Philip Marey of Rabobank indicated that leaving interest rates unchanged was no surprise. Although the Fed is keeping the door open for one more rate hike in November, Marey thinks it won’t come to that.
During his remarks, Jerome Powell said, among other things, that price pressures were showing some encouraging signs of easing, but that pushing inflation back to a 2 percent target is far from over.
He also reiterated that restoring price stability is the central bank’s top priority and that failure to do so could have serious consequences for the economy.
Furthermore, he still sees a path to a soft landing for the economy.
The Fed became much more positive about the economic prospects on Wednesday and now takes into account economic growth of 2.1 percent in 2023. In June, the central bank only expected growth of 1.0 percent.
And the new dot plot further signals that interest rates will be reduced twice in 2024 by 0.25 percent to 5.1 percent. In the previous projection, the Fed assumed four cuts of 0.25 percent. And in 2025, the interest rate will not be 3.4 percent, as anticipated in June, but 3.9 percent, according to the dot plot.
The US ten-year yield rose further to 4.39 percent.
Furthermore, it was announced on Wednesday in the US that weekly oil inventories have fallen by more than 2 million barrels. Nevertheless, the price for a barrel of WTI oil closed one percent lower after the Fed indicated that interest rates were expected to fall more slowly than previously expected.
Risers and fallers
General Mills barely responded to the published quarterly figures. The company performed slightly better than expected in the past quarter and confirmed the outlook for the full year. The share was trading virtually unchanged at $65.87.
Ford lost 1.6 percent after the Canadian union Unifor reached a preliminary agreement with the American carmaker, shortly before a new deadline for a strike expired on Tuesday.
Instacart lost more than 10 percent after the grocery delivery service managed to close 12 percent higher on Tuesday on the day of its IPO.
Intel is having a hard time again and lost 4.6 percent. Yesterday the share already had to give up 4 percent ground.
Goldman Sachs is in advanced talks with investors about the sale of its specialist lender GreenSky. The share of the American investment bank lost 1.5 percent.
Steelcase, an office furniture manufacturer, reported that its adjusted annual profit will be “significantly higher” as it receives more orders in connection with the return to the office. The share rose as much as 19.3 percent.
S&P 500 index 4.402,20 (-0,9%)
Dow Jones index 34.440,88 (-0,2%)
Nasdaq Composite 13.469,13 (-1,5%)
ASIA
The Asian stock markets were lower on Thursday morning.
Nikkei 225 32.619,93 (-1,2%)
Shanghai Composite 3.090,31 (-0,6%)
Hang Seng 17.651,44 (-1,3%)
VALUE
The euro/dollar was trading at 1.0633 this morning. On Wednesday evening, the currency pair was trading at 1.0659.
USD/JPY Yen 148,34
EUR/USD Euro 1,0633
EUR/JPY Yen 157,80
MACRO-AGENDA:
06:30 Consumer confidence – September (NL)
06:30 Investments – July (NL)
06:30 Unemployment – August (NL)
09:30 Riksbank – Interest rate decision (Swe)
09:30 Swiss National Bank – Interest rate decision (Zwi)
10:00 Norges Bank – Interest rate decision (Noo)
13:00 Turkish Central Bank – Interest rate decision (Tur)
13:00 Bank of England – Interest rate decision (UK)
2:30 PM Aid Applications – Weekly (US)
14:30 Philadelphia Fed index – September (VS)
4:00 PM Existing Home Sales – August (US)
4:00 PM Leading Indicators – August (US)
COMPANY NEWS:
00:00 Viohalco – Second quarter figures
10:00 PM FedEx – First Quarter Figures (US)
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.
2023-09-21 05:12:10
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