(ABM FN) The Brussels stock exchange is expected to start slightly lower on Friday. Futures on the Eurostoxx 50 index an hour before the gong indicated a loss of 0.5 percent. Figures from Apple, Alphabet, Amazon and Facebook were received very positively on Thursday evening after-hours on Wall Street.
On Thursday, the Bel20, in line with the European main stock markets, dropped sharply by 1.9 percent to 3,340.48 points. In particular, a dramatic contraction of the economy in the past quarter in Germany and America weighed heavily on European stock market sentiment.
Wall Street managed to limit the damage on Thursday evening, pending the figures of the tech giants. Main indicator S&P 500 closed 0.4 percent lower, while tech exchange Nasdaq even closed in the green with 0.4 percent. The Dow Jones index lost 0.9 percent.
American investors were therefore not only guided by the annual economic contraction of 9.0 percent in the past quarter.
According to market analyst Ranko Berich of Monex Europe, the contraction is the starting point of a long and potentially faltering recovery for the US economy, especially compared to equivalent economies where the virus outbreak seems to be better controlled.
Berich also pointed to the increase in unemployment benefits in the US and a range of other data suggesting that the second corona wave is now slowing the cautious economic recovery that was initially visible.
However, the Federal Reserve announced on Wednesday that it was ready to support the economy through its monetary policy. Numerous stimulus measures are also being prepared from the US Congress.
Figures Wall Street after market
The American online retail giant Amazon.com unexpectedly posted a billion-dollar profit in the past quarter, while revenues exceeded expectations by an increase of 40 percent to $ 88.9 billion. In electronic commerce, the share won 5 percent.
Apple also exceeded expectations with a turnover of $ 59.7 billion. Net income also improved last quarter from $ 10.04 billion to $ 11.25 billion, and at $ 2.58 per share, it was also well above the $ 2.05 forecast by analysts. The share climbed after stock exchange 6.5 percent.
In the second quarter, Facebook suffered from an advertising boycott of a number of large international companies, but also managed to exceed market expectations. The share in electronic commerce won 6.5 percent.
Finally, Google’s parent company Aplhabet reported less ad revenue as expected. However, earnings of $ 10.13 per share were much better than the $ 7.95 forecast by the market. The share won after-market just 1 percent.
Futures on Nasdaq tech exchange this morning pointed to a 1 percent opening profit at the start of trading on Wall Street this afternoon.
Oil and Asia
A barrel of West Texas Intermediate became 3.3 percent cheaper at $ 39.92 on Thursday evening.
Oil investors were once again worried about the number of rising corona cases in the United States and beyond and the potential economic impact that will also have a significant impact on oil demand.
In the Asian trade this morning, the future is half a percent higher.
Investors in Australia and Japan seem shocked this morning by the sharp contraction of the German and American economies. The Nikkei index in Tokyo is 2.3 percent lower, while the commodity-sensitive exchange in Sydney is 1.8 percent down.
The stock exchanges in China, on the other hand, are close to green, while the Korean stock exchange also remains close to home.
The euro, meanwhile, continues to advance against the dollar. This morning there was already a score of 1.1893 on the plates. Since the beginning of last week, when the eurozone corona repair fund took shape and the currency pair was listed at 1.1400, the euro has seen further gains almost daily.
In addition to a stream of business figures, investors today also have an eye for, among other things, US consumer confidence and preliminary economic growth in the second quarter in the eurozone.
Proximus’ revenue decreased year-over-year in the past quarter by 5.9 percent to 1.33 billion euros. The consensus compiled by the telecom company had aimed for a decrease of 4.8 percent to 1.35 billion euros. The group’s underlying EBITDA decreased by 1.5 percent to 477 million euros. The consensus aimed at 465 million euros.
In the first six months of 2020, WDP recorded an EPRA profit of 84.3 million euros, an increase of 15 percent year-on-year. EPRA earnings per share were 0.49 euros, an increase of 8 percent compared to a year earlier.
At the end of June 2020, GBL’s net asset value was EUR 17.5 billion, compared to EUR 18.7 billion at the end of June 2019.
Bekaert’s underlying EBITDA decreased year-on-year in the first half of 2020 from EUR 239 million to EUR 194 million. The analyst consensus aimed at 189 million euros. Sales therefore fell by 20 percent. “We expect a gradual recovery of the tire market in the rest of the year,” said Bekaert. The other markets are more difficult to estimate due to the current circumstances, the manufacturer noted.
Quest for Growth recorded a loss in the first half of 2020, but was able to limit the damage from the corona crash due to a strong second quarter on the stock markets. A loss of 2.6 million euros remained after the line, after a profit of 11.8 million euros was recorded a year earlier.
Solvac will distribute more dividend this year than in the same period last year. This was shown on Thursday evening by figures from Solvac, whose assets consist solely of a 30.81 percent stake in Solvay.
Kepler Cheuvreux removed Argen-X from the buying list and lowered the price target to 200.00 euros.
Closing positions Wall Street
The S&P 500 closed 0.4 percent on the Thursday evening at 3,246.22 points. The Dow Jones index lost 0.9 percent at 26,313.65 points, and the Nasdaq finished 0.4 percent higher at a final 10,587.81 points.
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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