European stocks expected to open higher

(ABM FN-Dow Jones) European stocks will open higher on Wednesday.

IG forecasts an opening gain of 15 points for the German DAX, a plus of 10 points for the French CAC 40 and an increase of 11 points for the British FTSE 100.

Stock markets in Europe also ended higher on Tuesday.

Market analyst Michael Hewson of CMC Markets said investors saw opportunities after Monday’s sell-off.

The upward movement of the stock markets was mainly due to cyclical stocks, according to the market analyst. Commodity stocks also performed well, Hewson said.

Company news

UBS Group closed the second quarter of 2021 with a higher profit. The stock gained 5.2 percent.

Alstom has confirmed its expectation for significant negative free cash flow in the current fiscal year due to the integration of Bombardier Transportation. Turnover and order book increased in the past quarter. The stock rose 2.5 percent.

Rémy Cointreau has almost doubled its turnover in the first quarter of the current broken financial year. Analysts called repeating the outlook for this fiscal year too cautious. The stock fell 0.7 percent.

Price fighter easyJet saw its turnover pick up in the past quarter, partly thanks to a limited expansion of capacity. The stock rose 0.9 percent.

AkzoNobel fell 2.3 percent ahead of Wednesday morning results. The American sector competitor PPG struggled with shortages and supply problems in the past quarter. As a result, the world’s largest paint producer was unable to meet expectations after trading hours on Wall Street on Monday.

Euro STOXX 50 3,956.34 (+0.7%)
STOXX Europe 600        435,75 (+0,1%)
DAX                  15.216,27 (+0,6%)
CAC 40 6,346.85 (+0.8%)
FTSE 100 6,881.13 (+ 0.5%)
SMI 11,945.68 (+ 0.7%)
AEX                     722,03 (+0,1%)
BEL 20 4,119.12 (+ 0.8%)
FTSE MIB             24.107,33 (+0,6%)
IBEX 35               8.358,00 (+0,7%)

US EQUITIES

Wall Street opens in the red on Wednesday, according to US futures. Investors get the chance to process the disappointing results of streaming service Netflix. Subscriber growth fell sharply and profits also disappointed. In addition, the outlook for the coming quarter was below expectations.

US stocks closed sharply higher on Tuesday.

“If you get a selloff like we had Monday, there will definitely be some investors who will see that as an opportunity to invest for the longer term,” UBS Global Wealth Management market strategist Kiran Ganesh said in Tuesday’s recovery in the stock markets. New York.

Stock market experts are not in agreement about whether the correction has now been completed. In particular, the impact of the rapidly increasing corona infections due to the delta variant creates uncertainty, according to currency analyst Ima Sammani of Monex Europe.

It was a quiet day macroeconomically, with only housing construction figures on the roll in the United States. More homes were under construction in June, but fewer new permits were issued.

Oil prices recovered to a limited extent on Tuesday from Monday’s sharp dip. On a settlement of $67.42, a barrel of West Texas Intermediate became 1.5 percent more expensive.

On Monday, the WTI oil price lost 7.5 percent after OPEC+ reached an agreement this weekend to gradually ramp up production until it is at pre-coronavirus levels.

Goldman Sachs analysts expect oil prices to remain volatile in the coming weeks “given the uncertainty surrounding the coronavirus delta variant” and supply-side development as oil production ramps up.

Company news

ManpowerGroup achieved significantly more profit in the second quarter of 2021 than it had previously estimated and analysts had estimated. CEO Jonas Prising said the company is benefiting from the improving global economy. Adjusted for exceptional items, the company earned $2.02 per share against a loss per share of $1.11 in the second quarter of 2020. $1.42. For the current third quarter, Manpower is targeting adjusted earnings per share of $1.86 to $1.94. That includes a positive exchange rate effect of $0.04. The stock fell 3.1 percent.

Halliburton also performed slightly better than expected in the second quarter. Under the line, Halliburton made a profit of $227 million against a loss of $1.7 billion a year earlier. Turnover rose to $3.7 billion. The stock rose 3.6 percent.

Philip Morris did not live up to expectations in the second quarter, but saw room to increase the profit outlook for the entire year. Revenue rose 14 percent to $7.6 billion. However, that was less than the $7.7 billion that analysts polled by FactSet had expected. Earnings per share this year are estimated at $5.76 to $5.86 per share. Previously, the manufacturer counted on 5.93 to 6.03 dollars. In 2020, Philip Morris earned $5.16 per share. The stock lost 3.1 percent.

There was also quite a bit of commotion on Monday evening after the market. IBM and PPG came up with numbers.

IBM exceeded expectations and reiterated its outlook for the entire year. The stock rose 1.4 percent.

PPG lost 4.3 percent. PPG posted significantly higher revenues in the second quarter, driven by higher prices and volumes, and significantly increased its dividend. The volume growth was disappointing, according to the CEO, due to supply problems and shortages, including of raw materials for coatings.

S&P 500 index               4.323,06 (+1,5%)
Dow Jones index            34.511,99 (+1,6%)
Nasdaq Composite           14.498,88 (+1,6%)

ASIA

Asian stocks were mixed on Wednesday.

Nikkei 225             27.538,88 (+0,6%)
Shanghai Composite      3.558,11 (+0,6%)
Hang Seng 27,159.11 (-0.4%)

EVALUATE

The euro/dollar traded at 1.1770 this morning. When the US markets closed on Tuesday, the currency pair still moved at 1.1783.

USD/JPY Yen   109,90
EUR/USD Euro  1,1770
EUR/JPY Yen   129,36

MACRO-AGENDA:
00:50 Trade Balance – June (Jap)
13:00 Mortgage Applications – Weekly (US)
16:30 Oil Stocks – Weekly (US)

COMPANY NEWS:
07:00 ASML – Second quarter figures (NL)
07:00 Daimler – Second quarter figures (Germany)
07:00 Novartis – Second quarter figures (Zwi)
07:00 SAP – Q2 figures (Ger)
13:00 Coca-Cola – US Q2 Figures
13:00 Harley-Davidson – US Q2 Figures
13:00 Johnson & Johnson – US Q2 Figures
22:00 Texas Instruments – US Q2 Figures

ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.

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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