European stock exchanges open in red

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(ABM FN-Dow Jones) The European stock markets are heading for a lower opening on Wednesday.

IG predicts an opening loss of 55 points for the German DAX, a minus of 22 points for the French CAC 40 and a drop of 26 points for the British FTSE 100.

The European stock markets closed lower on Tuesday after Monday’s gains.

Among the fallers were shopping center operator Klépierre, airline Deutsche Lufthansa and airport operator Aéroports de Paris, all of which will suffer from new restrictions to keep the corona virus in check.

Worldwide, more than a million people have now died from the virus.

“Investors had that headline up front on their minds today,” said CMC Markets market analyst David Madden. “When you compare yesterday’s big gains with the relatively small losses today, it indicates that traders are not too concerned about the coronavirus.”

The British are negotiating with the European Union this week on an internal market law that would reverse elements of last year’s withdrawal agreement.

However, Tuesday’s main event will be the first debate between Donald Trump and Joe Biden, the actual kick-off of the US presidential election. According to analyst Andrew Garthwaite, the S&P500 index would fall about 9 percent if all of the measures Biden suggests were implemented.

However, we think some of the more controversial plans would be watered down, with probably only a narrow majority in the Senate, the analyst said. “If the economy is doing badly, tax increases would likely be delayed and spending accelerated.”

Economic news came from France, where consumer confidence slowed down in September. In Germany, consumer prices fell more sharply than expected in September, by 0.4 percent, indicating declining demand. ECB chairman Christine Lagarde said on Monday that inflation in the eurozone will be negative for the time being.

The oil price fell sharply after news that Sheikh Sabah al-Ahmad al-Jaber al-Sabah, the ruler of the Arab oil state of Kuwait, has passed away at the age of 91. The sheik was an important diplomat in the region.

Company news

Manufacturers of luxury items such as eyewear manufacturer EssilorLuxottica, L’Oréal, Hermes and bag maker LVMH closed higher.

Banks, insurers and energy companies struggled. BNP Paribas and Banco Santander both lost more than 2.5 percent, and insurer Axa also lost more than 2 percent.

Royal Dutch Shell and Total also had to give up more than 2 percent.

Nokia has extended its partnership with BT for 5G. The Finns did not share financial details. Nokia closed almost 2 percent higher, BT Group lost 2.4 percent.

Outokumpu is starting a reorganization of the business after completing a strategic review of the Long Products division. The reorganization will start immediately and can cost approximately 100 jobs. The stock closed 1.9 percent higher.

The US SEC has agreed a $ 9.5 million fine with carmaker Fiat Chrysler for misleading information about exhaust gas control systems. Fiat Chrysler lost 2.3 percent in Milan.

Volkswagen takes over the camera software division of Hella, Germany. The acquisition, which should give a boost to the development of self-driving cars, will be completed at the beginning of 2021. Volkswagen fell 0.1 percent.

Euro STOXX 50 3,214.24 (-0.28%)
STOXX Europe 600       XXX,XX (+X,X%)
DAX                          12.825,82 (-0,35%)
CAC 40 4,832.07 (-0.23%)
FTSE 100 5,897.50 (0.51%)
SMI 10,229.30 (-0.77%)
AEX                                548,92 (-0,50%)
BEL 20 3,234.90 (-0.78%)
FTSE MIB                 19.061,18 (0,52%)
IBEX 35                       6.713,60 (1,15%)

AMERICAN SHARES

Wall Street opens in red on Wednesday, according to US futures.

The US stock markets closed slightly lower on Tuesday in anticipation of the opening debate between US President Donald Trump and his challenger in the upcoming presidential election, Joe Biden.

The stock markets are approaching the end of a turbulent month of September, with gains in the three previous trading days after previous price falls. The stock market downturn over the past period was predicted after stocks skyrocketed for months, recovering from the March low triggered by the coronavirus.

“That’s just how markets work,” said Howard Capital Management CEO Vance Howard. “A marathon runner cannot run forever without taking a rest. That doesn’t mean anything is wrong.”

With the approaching US presidential election, the markets seem to be getting more restless. From 3 AM, the candidates verbally attacked each other long after Wall Street closed. “People will look to this debate for an answer as to whether both sides will accept the outcome of the election,” Gresham House’s Tony Dalwood said ahead of the event. “Any uncertainty about this will lead to volatility.” Biden is in the polls with about 8 percentage points ahead of Trump.

The chances of extra stimulus money for the American economy seem to be disappearing in the meantime. Nancy Pelosi, Speaker of the House of Representatives on behalf of the Democrats, speaks with the Treasury Secretary on Tuesday and Wednesday about a package and is said to have lowered her demands. However, Congress’s attention has shifted to the appointment of a new high judge and that would reduce the likelihood of a stimulus deal.

Economically, consumer confidence rose sharply in September, from 86.3 to 101.8, according to the Conference Board. The American goods balance was less favorable. The trade deficit rose to nearly $ 83 billion in August, as imports grew faster than exports.

Company news

Beyond Meat was worth 9.5 percent more. The company will sell its meat substitutes in Walmart stores.
Abbott Laboratories rose 1.3 percent after Trump said 150 million rapid coronavirus tests from the drug company are being distributed across the US. The order is worth $ 760 million. The share rose 0.9 percent.

Uber Technologies is interested in an acquisition of Free Now, a mobility services provider from German car manufacturers BMW and Daimler. Bloomberg news agency wrote this on Tuesday. The Uber share fell 0.4 percent.

Walmart would like to invest $ 20 billion to $ 25 billion in Tata’s digital platform, Indian newspaper Mint reported Tuesday. The joint platform would provide various services such as a grocery shopping service and a payment service and would be worth $ 50 billion to $ 60 billion. The stock closed flat.

Tiffany responded Tuesday afternoon to LVMH’s arguments to abandon a planned takeover bid. The jewelry chain believes that the French luxury group is not meeting its contractual obligations. The Tiffany stock became 0.2 percent cheaper.

S&P 500 index                   3.335,47 (-0,48%)
Dow Jones index            27.452,56 (-0,48%)
Nasdaq Composite           11.085,25 (-0,29%)

ASIA

The Asian stock markets were divided on Thursday, after a stream of macro data and in the run-up to a days-long closure of the Chinese stock markets.

Nikkei 225                     23.313,34 (-1,0%)
Shanghai Composite      3.238,86 (+0,5%)
Hang Seng 23,549.47 (+ 1.2%)

EVALUATE

The euro / dollar was trading at 1.1733. When the American stock markets closed on Tuesday, the currency pair was still moving at 1.1741 and at the close of the European stock exchanges there was 1.1719 on the plates.

USD/JPY Yen   105,50
EUR/USD Euro  1,1733
EUR/JPY Yen   123,81

MACRO-AGENDA:
00:50 Industrial production – August (Jap)
00:50 Retail sales – August (Jap)
03:00 Purchasing managers index industry and services – September (Chi)
03:45 Purchasing managers index industry Caixin – September (Chi)
06:30 Producer prices – August (NL)
06:30 Retail turnover – August (NL)
08:00 Retail sales – August (Ger)
08:00 Import prices – August (Germany)
08:00 Economic Growth – Second Quarter Final. (UK)
08:45 Inflation – September vlpg. (From)
09:55 Unemployment – September (Ger)
11:30 Industrial production – July (Bel)
11:30 Producer Prices – August (Bel)
1:00 PM Mortgage Applications – Weekly (US)
14:15 ADP Jobs Report – September (US)
14:30 Economic Growth – Second Quarter Final. (USA)
15:45 Purchasing managers index Chicago – September (US)
4:00 PM Upcoming Home Sales – August (US)
4:30 PM Oil Stocks – Weekly (US)

COMPANY NEWS:
-No agenda items

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

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