(ABM FN-Dow Jones) The European stock markets will open on Wednesday with a flat opening. IG foresees an opening loss of 15 points for the German DAX, a minus of 7 points for the French CAC 40 and a drop of 12 points for the British FTSE 100.
European stocks closed higher on Tuesday, ahead of the US interest rate decision Wednesday evening, and signals from the US job market later this week.
Eurozone manufacturing purchasing managers’ indices confirmed a slowdown in growth, which preliminary data had already hinted at.
Meanwhile, Wall Street continued to climb after records set on Monday. “The stock market is remarkably resilient,” said UBS’s Greg Marcus.
Company news
HelloFresh posted significantly higher revenues in the third quarter, but the adjusted EBITDA result was under pressure. The meal box delivery company also raised its revenue forecast for this year. The stock rose more than 17 percent.
In Frankfurt, Fresenius Medical Care saw a gain of 1.2 percent, and Fresenius SE of 2.2 percent. Covestro shares lost 1.9 percent.
Siemens rose more than 3 percent, after rival Rockwell looked positive.
Glasses seller EssilorLuxottica was also among the stronger risers, as were pharmaceutical giants Sanofi and Bayer.
Standard Chartered lost 8 percent after a cautious outlook from the British bank.
Flutter Entertainment also went down. The gambling company lowered its profit forecast and closed nearly 8 percent lower.
BP made more profit in the third quarter of 2021 and maintained the quarterly dividend. A new share buyback program was also announced. BP shares lost more than 3 percent.
In Paris, ArcelorMittal fell 3.8 percent. Iron ore prices in China are under strong pressure.
Miners’ share prices also fell in London. Anglo American and BHP fell about 3 percent.
Euro STOXX 50 4,273.03 (+0.53%)
STOXX Europe 600 479,53 (+0,14%)
DAX 15.802,45 (+0,72%)
CAC 40 6,892.92 (+0.92%)
FTSE 100 7,295.30 (+ 0.80%)
SMI 12,193.70 (+ 0.71%)
AEX 811,09 (+0,02%)
BEL 20 4,300.50 (+ 0.51%)
FTSE MIB 27.158,00 (+1,05%)
IBEX 35 9.179,50 (+1,34%)
US EQUITIES
Wall Street opens slightly lower on Wednesday, according to US futures.
U.S. stocks closed on new highs on Tuesday, pending the Fed’s rate decision on Wednesday.
The rise in New York followed a somewhat deadly opening. The latest quarterly figures from Pfizer, Under Armor and other companies, among others, seemed to help.
If the markets close higher for the third day in a row, there will be talk about a possible year-end raly. “The stock market has been remarkably resilient and has melted up despite supply chain problems, inflation concerns, rising interest rates and a more hawkish Fed,” said UBS’s Greg Marcus.
“In the coming days, investors will be watching the Fed’s rate decision, jobs data and the OPEC meeting, which could fuel volatility in stock markets,” said AvaTrade market analyst Naeem Aslam.
New York stock markets have recently reached new heights thanks to a strong earnings season. But there are plenty of risks to consider, Aslam said, such as new strains of the coronavirus, ongoing supply chain problems and rising consumer and energy prices.
“All these factors will hinder growth in the coming months,” Aslam expects. He expects the upward movement in equity markets to continue until the end of this month, after which uncertainty increases. While the quarterly figures are still favourable, they will probably come under more pressure in 2022 due to high inflation and problems in the supply chain.
Investors are cautious ahead of the Federal Reserve’s two-day policy meeting. Wednesday evening it will become clear whether the US central bank will start tapering this month.
UniCredit economists are counting on the Fed to announce Wednesday that it will begin phasing out its $120 billion monthly asset-buying program in mid-November. According to the Italian bank, this will be done in increments of 15 billion dollars per month, so that the program comes to an end in June 2022.
According to CME Group’s FedWatch tool, a majority of the market is currently pricing in a rate hike of at least 25 basis points in June 2022. At the beginning of October, the market was generally expected to see a first rate hike not before the last quarter of 2022. The federal funds rate has been trading at 0.00 to 0.25 percent since March 2020.
On a macroeconomic level, it was quiet in the United States.
Company news
Under Armor rose 16 percent after stronger-than-expected quarterly figures for the clothing manufacturer.
Tesla was under pressure after CEO Elon Musk announced last night that the deal with Hertz that Bloomberg news agency announced last week has not yet been signed. The US car rental company would be 100,000 Tesla; s have ordered. Musk said the Hertz deal will not affect Tesla’s numbers. It also emerged on Tuesday that Tesla is recalling nearly 12,000 cars due to brake problems. The stock fell 3 percent.
DuPont de Nemours rose 9 percent. The chemical group lowered its outlook due to ongoing supply chain problems. The company also announced a strategic review. For example, the Mobility & Materials segment will be largely divested and DuPont will acquire the specialized materials company Rogers for $5.2 billion.
Pfizer raised its full-year outlook. The results in the third quarter were significantly boosted by the corona vaccine. Over 2021, Pfizer expects to generate $36 billion in revenue from the vaccine it developed with BioNTech. Pfizer won 4 percent.
ConocoPhillips returned to the black in the third quarter and increased its dividend. Adjusted EPS of $1.77 was better than the market’s forecast of $1.52. ConocoPhillips increased its quarterly dividend by 7 percent to $0.46 per share. The stock fell 2 percent.
Shares of Estee Lauder rose 4 percent. The cosmetics company managed to find its way up after results beat expectations on a disappointing outlook.
Meta closed slightly lower and did not fall further after the market, after the company announced it would stop automatic facial recognition on its social media platform Facebook.
S&P 500 index 4.631,80 (+0,39%)
Dow Jones index 36.065,07 (+0,42%)
Nasdaq Composite 15.631,70 (+0,23%)
ASIA
Asian stocks were lower on Wednesday.
Nikkei 225 29,520.90 (closing position Tuesday)
Shanghai Composite 3.485,69 (-0,6%)
Hang Seng 24,854.83 (-1.0%)
EVALUATE
The euro/dollar traded at 1.1580. When the US markets closed on Tuesday, the currency pair still moved at 1.1579 and at the close of the European markets there was still 1.1572 on the plates.
USD/JPY Yen 113,85
EUR/USD Euro 1,1580
EUR/JPY Yen 131,86
MACRO-AGENDA:
03:45 Purchasing managers index services Caixin – October (Chi)
10:30 Services Purchasing Managers Index – October final. (UK)
11:00 Unemployment – September (eur)
12:00 Mortgage Applications – Weekly (US)
13:15 ADP Jobs Report – October (US)
14:45 Purchasing managers index services Markit – October def. (US)
15:00 Services Purchasing Managers Index ISM – October (US)
15:00 Factory Orders – September (US)
15:30 Oil Stocks – Weekly (US)
19:00 Federal Reserve – Interest Rate Decision (US)
19:30 Federal Reserve – Notes on interest rate decision (US)
COMPANY NEWS:
07:00 Deutsche Lufthansa – Third quarter figures (Ger)
07:00 Zalando – Third quarter figures (Ger)
21:00 Qualcomm – US Fourth Quarter Figures
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.
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