(ABM FN-Dow Jones) The European stock markets are expected to open higher on Tuesday, after the stock market week started on Monday with great enthusiasm.
IG anticipates an opening win of 58 points for the German DAX, a plus of 15 points for the French CAC 40 and an increase of 14 points for the British FTSE 100.
The European stock markets started the new week convincingly on Monday.
“Stock markets in Europe are closed significantly higher,” noted CMC Markets market analyst David Madden. “There has been a massive shift in sentiment from losses in Europe on Friday.”
Madden noted that the positive sentiment on the US stock markets is good for sentiment in Europe, but that the European stock markets already found their way up this morning on their own. “The corona crisis is still a serious problem in Europe, but investors put it aside today,” said Madden.
The market researcher saw in London that profits were broad-based, especially the profits of banks, home builders and supermarkets, in addition to large risers in the oil industry, the transport sector and the catering industry.
“Investors seem ready to fully step back into the market after a week of heavy losses, but today’s moves seem a bit exaggerated given the current uncertainties,” said Madden, pointing out the trade talks between the European Union and the United Kingdom alongside the corona crisis. Kingdom and the absence of a stimulus package in the United States.
In Europe, the ninth round of talks between the United Kingdom and the European Union started on Tuesday. Market analyst Stefan Koopman of Rabobank told ABM Financial News on Monday that it may be possible this week to hit nails with heads.
The market was also supported by macro data from China. The Chinese industry posted 19.1 percent more profit in August. While earnings growth slowed slightly from the previous month when an increase of 19.6 percent was reported, market followers said the numbers were “decent”.
HSBC rose 8.9 percent on Monday after Chinese Ping An Insurance increased its stake in the bank to 8 percent. Last week, HSBC’s stock fell to its lowest level since 1995 following a report on alleged money laundering activities at a number of leading banks.
Commerzbank rose 5.6 percent on Monday. Manfred Knof, a director of Deutsche Bank, will be Commerzbank’s next CEO. Knof worked for Deutsche Bank at Allianz Deutschland.
ArcelorMittal rose 10.9 percent after the steel giant struck a deal to sell its US arm to Cleveland-Cliffs. Analysts responded positively to the sale, which is also causing debt to fall.
William Hill lost 11.6 percent, up 43 percent Friday when it revealed that Caesars Entertainment and Apollo were talking about making takeover bids. Ceasars Entertainment said on Monday it will offer 272 pence in cash, valuing the company at £ 2.9 billion.
Diageo rose 6.1 percent after the beverage giant said its outlook for the year has improved, driven largely by its US operations, thanks to “resilient” consumer demand.
Euro STOXX 50 3,227.38 (+ 2.9%)
STOXX Europe 600 363,39 (+2,2%)
DAX 12.870,87 (+3,2%)
CAC 40 4,843.27 (+ 2.4%)
FTSE 100 5,927.93 (+ 1.5%)
SMI 10,308.67 (+ 0.9%)
AEX 551,67 (+2,0%)
BEL 20 3,260.42 (+ 3.1%)
FTSE MIB 19.160,10 (+2,5%)
IBEX 35 6.791,50 (+2,5%)
Wall Street opens in the plus on Tuesday, according to American futures.
The US stock markets closed convincingly higher on Monday evening.
“The US exchanges are building on the gains made on Friday,” said CMC Markets market analyst David Madden.
Investors seem to believe last week’s sell-off was over. “There has been a lot of buzz in the markets recently, and it now seems to be over,” said PineBridge Investments fund manager Hani Redha. “The underlying fundamentals are all going in the right direction [en] we are on the verge of a multi-year economic recovery, “said Redha.”[Het herstel] will be volatile in the coming weeks, but the overall trend is positive. “
Financials and energy stocks, which are sensitive to economic developments, were the biggest winners on Monday. Citigroup and Morgan Stanley, for example, rose to about three percent, as did Chevron and ExxonMobil.
Thomas Hayes, director of investor Great Hill Capital, said he bought shares of Wells Fargo and other banks in recent days. He expects such stocks to outperform tech funds, which posted strong gains from March to September.
Hayes expects stocks that have lagged to catch up. Indeed, he noted that cyclical stocks often beat the broader market in post-recession recovery periods.
September has proven to be a turbulent month for equities, with sharp declines in tech stocks pulling broader indices down. The S&P 500 is more than six percent below the record level at the beginning of this month.
On Monday, the Cboe Volatility Index, which measures volatility in the S&P 500, rose further. Investors seem to be still uneasy about the increased corona infections, the uneven economic recovery and also about the political developments and the ongoing tensions between China and the United States.
In addition, there are the upcoming US presidential elections, which are causing the necessary volatility, especially as market experts fear that the results of the election in early November may be delayed. Moreover, President Donald Trump does not want to promise a peaceful transfer of power.
“It’s a very different environment than we saw before in elections,” said NatWest Markets market strategist James McCormick. “As an investor you have to protect yourself, because you don’t know how things will turn out.”
CMC’s Madden further pointed to statements made by US President Donald Trump, denying accusations that he would have paid almost no taxes in the run-up to his presidency. “His tax returns will undoubtedly feature in the presidential debate with Joe Biden,” Madden expects.
The uncertainty surrounding the elections and a new support package, as well as the rising number of corona infections and the ongoing tensions between the US and China, do not mean that investors should ban equities altogether.
UBS remains quite positive on equities in the coming months, but acknowledges the expected volatility. “As long as monetary support is abundant, equities will remain relatively attractive against historically low bond yields. In addition, we expect more progress in the quest for a safe and effective corona vaccine,” said chief investment officer Mark Haefele.
The oil price closed slightly higher on Monday. A barrel of West Texas Intermediate became 0.9 percent, or $ 0.35, cheaper at $ 40.60 at settlement. However, several prominent figures in the oil market said they foresee the necessary challenges for the oil price and pointed to the uneven economic recovery. For example, Russian energy minister Alexander Novak said last weekend that while oil demand has stabilized, demand could just as well fall by 10 percent in the coming period. Novak does not rule out a second wave of contamination.
The US government should not ban TikTok from US app stores, a Washington judge ruled this weekend. As a result of the ruling, ByteDance now has more time to reach a final agreement with Oracle and Walmart and to obtain approval for this from Beijing. A federal court in San Francisco also previously blocked the intended ban of Tencent’s WeChat in the US. WeChat has 19 million regular users in the US. TikTok about 100 million.
Shares of Oracle and Walmart fell marginally.
Uber has recovered its taxi license in London from a British judge after a regulator refused to renew the license last year due to safety concerns. The Reuters reported this on Monday. The stock closed 3.2 percent higher.
Weibo performed better in the second quarter than in the first three months of the year when advertising revenues in particular were under pressure due to the corona pandemic. This was shown on Monday from the results of the Chinese microblogging service with a listing on Wall Street. The share rose 7.4 percent.
Shares of Hologic were up more than two percent after the drug company received FDA approval for a diagnostic test that could be used specifically in people with Covid-19 who are asymptomatic.
HSBC’s listing in New York rose more than 10 percent after it became known that China’s Ping An Insurance has bought nearly 11 million shares at an average $ 3.65 each, increasing its stake in HSBC to 8 percent.
S&P 500 index 3.351,60 (+1,6%)
Dow Jones index 27.584,06 (+1,5%)
Nasdaq Composite 11.117,53 (+1,9%)
The Asian stock markets were divided on Tuesday.
Nikkei 225 23.564,31 (+0,2%)
Shanghai Composite 3.234,39 (+0,5%)
Hang Seng 23,418,23 (-0.3%)
The euro / dollar was trading at 1.1673. When the US stock markets closed on Monday, the currency pair was still moving at 1.1670.
USD/JPY Yen 105,55
EUR/USD Euro 1,1673
EUR/JPY Yen 123,21
08:45 Consumer confidence – September (Fra)
11:00 Consumer confidence and economic sentiment – September final. (EUR)
11:30 Inflation – September (Call)
14:00 Inflation – September vlpg. (Dld)
14:30 Wholesale Stocks – August (US)
15:00 Case-Shiller House Prices – July (US)
4:00 PM Consumer Confidence Conference Board – September (US)
22:00 Micron Technology – Fourth quarter figures (US)
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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