(ABM FN-Dow Jones) European stocks are set to open higher on the first day of 2022.
IG forecasts an opening gain of 43 points for the German DAX, a plus of 20 points for the French CAC 40 and a 12 point increase for the British FTSE 100.
The last trading day of 2021 was calm. The German DAX rose about 16 percent in 2021, while the broad Stoxx Europe 600 index rose about 22 percent last year and the London stock exchange more than 14 percent.
Investors are looking at a number of risks in the new year that could derail the market rally. The number of coronavirus cases is on the rise, forcing some companies to shorten their services and opening hours due to illness reports.
In addition, there is concern about rising inflation, which raises the question of how much price increases consumers can handle and whether that will affect corporate profits. Finally, central banks are tightening their loose monetary policy.
Company news
In Paris, Renault led the way on the last day of 2021 with a gain of 1.5 percent. Unibail-Rodamco-Westfield closed 1.4 percent higher. Carrefour won 0.6 percent, while ArcelorMittal was 0.7 percent lower. Danone lost 0.6 percent.
Euro STOXX 50 4,298.41 (+0.3%)
STOXX Europe 600 487,83 (-0,2%)
DAX 15,884.86 (+0.2% – closing position Thursday)
CAC 40 7,153.03 (-0.3%)
FTSE 100 7,384.54 (-0.3%)
SMI 12,875.66 (-0.4% – closing position Thursday)
AEX 797,93 (-0,3%)
BEL 20 4,310.15 (-0.1%)
FTSE MIB 27,346.83 (+0.01% – closing position Thursday)
IBEX 35 8,713.80 (+0.5% – closing position Thursday)
US EQUITIES
Wall Street opens in the plus on Monday, according to US futures.
US stocks closed lower on Friday. The last trading day of 2021 was unexciting, after a busy year in which retail investors threw themselves into so-called meme stocks and the roll-out of coronavirus vaccines and low interest rates stimulated stock markets in general.
These factors have caused the S&P 500 to close at record 70 times in the past year, more than a quarter of all trading days. “This is truly the year of economic recovery,” said Schroders market analyst Sean Markowicz. “In 2022 I foresee a slowdown in growth as the massive policy stimulus in response to the pandemic is tapered off,” he added.
Market analyst Chris Beauchamp expects equities to rise further in 2022, but presumably without the enthusiasm of 2021, as investors face uncertainty over the rapid spread of the omikron variant and the prospect of rising interest rates.
Major US benchmarks have risen steadily over the past year, posting record after record. The Dow eventually rose about 19 percent in 2021, the S&P 500 27 percent and the Nasdaq more than 21 percent on an annual basis.
The euro/dollar traded at 1.1385 Friday evening. On an annual basis, the dollar appreciated about 7 percent against the European currency. Bitcoin cost around $46,000 and rose about 59 percent in 2021.
At a settlement of $75.21, a barrel of West Texas Intermediate became 2.3 percent cheaper on the last day of 2021. Oil prices rose 55 percent this year, the largest increase since 2009.
While the oil price still fell sharply in 2020 as a result of the corona outbreak and the pressure on the demand for oil, West Texas Intermediate and Brent managed to recover strongly this year. Brent rose more than 50 percent in 2021.
Next week, OPEC and allies will meet to discuss the situation in the oil markets. Some analysts expect OPEC+ to increase production, although omikron may ensure that oil-producing countries maintain current agreements.
“If they keep their agreements, it could put pressure on oil prices,” ThinkMarkets analyst Fawad Razaqzada said earlier this week.
Company news
Apple, Tesla and Microsoft lost up to one percent. Much of last year’s stock rally was driven mainly by these three tech companies. Apple rose about 34 percent in 2021, Tesla and Microsoft were worth around 50 percent more.
Biogen fell slightly, after losing more than 7 percent on Thursday, after Samsung Biologics debunked rumors of a possible takeover.
Exxon Mobil rose one percent. The oil giant reported Thursday that it expects higher gas prices to boost fourth-quarter profits by $700 million to $1.1 billion.
The US health service CDC advises not to go on a cruise vacation, because of the extra risk of corona infection. The listed cruise lines gave up only light ground yesterday. Carnival closed 1.5 percent lower, Royal Caribbean fell to half a percent.
The Medicines and Healthcare products Regulatory Agency (MHRA) in the United Kingdom has approved Pfizer’s corona pill. According to the British regulator, paxlovid is safe and effective against hospitalizations and death in people with a mild to moderate corona infection. The stock gained more than one percent.
S&P 500 index 4.766,18 (-0,3%)
Dow Jones index 36.338,30 (-0,2%)
Nasdaq Composite 15.644,97 (-0,6%)
ASIA
Asian stock markets that were open Monday fell.
Nikkei 225 28,791.71 (closing position Dec 30)
Shanghai Composite 3,639.78 (closing position Dec 31)
Hang Seng 23,261.68 (-0.6%)
EVALUATE
The euro/dollar was trading at 1.1338 this morning. When the US markets closed on Friday, the currency pair moved at 1.1385.
USD/JPY Yen 115,34
EUR/USD Euro 1,1338
EUR/JPY Yen 130,77
MACRO-AGENDA:
09:00 Industry Purchasing Managers Index – December (NL)
09:15 Industry Purchasing Managers Index – December (Spa)
09:45 Industry Purchasing Managers Index – December (Ita)
09:50 Industry Purchasing Managers Index – December def. (fra)
09:55 Industry Purchasing Managers Index – December def. (German)
10:00 Industry Purchasing Managers Index – December final (EUR)
15:45 Industry Purchasing Managers Index Markit – December (US)
COMPANY NEWS:
– No agenda items
Bron: ABM Financial News
From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
–
