(ABM FN-Dow Jones) The European stock markets are expected to open higher on Wednesday.
IG anticipates an opening win of 34 points for the German DAX, a plus of 9 points for the French CAC 40 and an increase of 11 points for the UK FTSE 100.
The stock markets in Europe are closed on Tuesday. According to CMC Markets’ David Madden, there was little for European equity markets to pick up, especially during afternoon trading, with the German DAX clearly lagging the other major indices. Heavyweight Bayer delivered disappointing quarterly results and lowered the outlook.
“The lack of a deal between Republicans and Democrats on a Covid-19 aid package has been reluctant,” said the market analyst.
On a macroeconomic level, it was announced on Tuesday that producer prices in the eurozone rose by 0.7 percent on a monthly basis in June after a decline of 0.6 percent a month earlier. Economists had expected a plus of 0.6 percent for June.
BP lost $ 16.8 billion in the second quarter. A year earlier, the British energy giant just made $ 1.8 billion. BP wrote off billions in the past quarter, partly because of the lower oil price. The company cut the dividend in half. The stock closed 6.5 percent higher. Sector colleague Royal Dutch Shell won 3.5 percent.
After a weaker than expected second quarter, Bayer has lowered its outlook for the year. For 2020, Bayer now expects a turnover of between EUR 43 billion and EUR 44 billion. Earlier this was 44 billion to 45 billion euros. The EBITDA margin before exceptional items should still be around 28 percent, which should yield an EBITDA of 12.1 billion euros. Core earnings per share will be between 6.70 and 6.90 euros this year, according to Bayer, compared to an earlier estimate of 7.00 to 7.20 euros. The Bayer stock closed 2.4 percent.
Infineon Technologies performed better than expected in the past quarter and also became more positive for the full fiscal year. For the current quarter, Infineon is aiming for a turnover of 2.3 to 2.6 billion euros with a margin of about 14 percent. Infineon’s share price gained 2.6 percent in value on Tuesday.
DSM’s Q2 results were better than analysts had expected, and the company reiterated previously released expectations for 2020, taking into account the necessary uncertainty from the corona outbreak. DSM saw the share price fall by 3.0 percent.
As a result of the corona crisis, Diageo achieved a considerably lower turnover and result in its past financial year. The results also included a write-down of £ 1.3 billion, related to the corona pandemic. The proposed dividend went up by 2 percent. The beverage manufacturer’s share nevertheless recorded a loss of 5.6 percent.
EasyJet’s turnover fell sharply in the past quarter, but the British price fighter is counting on a smaller loss for the current quarter. The company thinks that about 40 percent of the planned flights can be performed. Earlier, 30 percent was expected. The stock price gained 8.8 percent on Tuesday. Air France-KLM won 5.2 percent and Lufthansa became 5.3 percent more expensive.
Coffee company JDE Peet’s had slightly lower sales in the first 6 months of this year, but underlying profitability improved by more than 10 percent. The share price closed 0.4 percent lower.
Euro STOXX 50 3,254.29 (+ 0.2%)
STOXX Europe 600 363,39 (-0,1%)
DAX 12.600,87 (-0,4%)
CAC 40 4,889.52 (+ 0.3%)
FTSE 100 6,036.00 (+ 0.1%)
SMI 10,162.04 (-0.7%)
AEX 557,94 (+0,04%)
BEL 20 3,320.71 (-0.1%)
FTSE MIB 19.613,95 (+1,2%)
IBEX 35 7.021,60 (+0,7%)
Wall Street opens higher on Wednesday, according to American futures.
The US stock markets ended higher on Tuesday. Despite the spread of it [corona]virus, the economy continues to recover, “said strategist Kit Juckes of Société Générale. Yet there are still plenty of things to worry about investors, Juckes warned.
According to JPMorgan Asset Management’s Hugh Timber, markets are not yet confident enough that the US economy can stand on its own, so more stimulation is needed.
Therefore, investors are watching closely what is happening on Capitol Hill, where Democrats and Republicans are negotiating a new support package. The market is hoping for a $ 1 trillion deal.
The split point appears to be the $ 600 a week in additional assistance unemployed Americans receive. According to strategist Philippe Gijsels of BNP Paribas Fortis, the fact that there will eventually be an agreement has already been partly discounted. He warns that white smoke can evaporate quickly.
According to Squared Financial’s Rony Nehme, August is normally a tough month for equities, “but in the year of Covid-19, nothing is sacred,” and so far, stock markets seem very resilient, said the market strategist.
In the United States, the number of new corona infections remained below 50,000 on Monday for the second day in a row. “The question is whether this is the beginning of a trend,” said Fahad Kamal of Société Générale.
Macroeconomically, it was announced on Tuesday afternoon that economic activity in the industry around New York City increased in July after months of contraction.
Orders placed at US factories recovered further in June after a rebound in May following the sharp decline in April and March. Factory orders were up 6.2 percent after a revised plus of 7.7 percent in May. An increase of 4.9 percent was foreseen by economists.
The gold price topped $ 2,000 per troy ounce for the first time on Tuesday. The oil price rose on Tuesday after a major explosion at a port in the Lebanese capital Beirut. A barrel of West Texas Intermediate became 1.7 percent more expensive at $ 41.70 on the settlement.
Today, the US corporate agenda was quiet. After-hours are still figures from Beyond Meat and Disney on the agenda.
The European Commission has launched an in-depth investigation into Google’s proposed acquisition of Fitbit. Brussels is concerned that the takeover will give Google too much power in the online advertising market. The Fitbit share lost 1.1 percent and Google’s parent company, Alphabet, fell 0.6 percent.
Ford CEO Jim Hackett will retire October 1, the automaker reported Tuesday. The Ford share rose 2.5 percent.
US President Donald Trump has said he is willing to approve Microsoft’s takeover of TikTok’s US business, but only if the US government receives “a lot of money”. Microsoft is negotiating with parent company ByteDance and hopes to have an agreement by September 15. The Microsoft share lost 1.5 percent in value.
Twitter is expected to pay at least $ 150 million to the US Federal Trade Commission in connection with unauthorized use of private data in 2011. Twitter’s share fell 0.1 percent.
Booking.com plans to fire up to a quarter of its staff due to the corona crisis. This confirmed the travel site, after NRC.nl reported the news based on a video that CEO Glenn Fogel shared with his staff on Tuesday. The Booking Holdings share rose 1.5 percent.
The US Securities and Exchange Commission is investigating the circumstances surrounding the announcement of a government loan to Eastman Kodak last week and the subsequent significant volatility of the stock. The Wall Street Journal reported this Tuesday based on sources. Kodak announced last week that it has received a $ 765 million government loan to manufacture drugs at its U.S. factories. Then the stock rose to about $ 60. On Monday, Kodak fell to $ 15 due to a stock dilution. Eastman Kodak’s stock fell 3.6 percent on Tuesday.
S&P 500 index 3.306,51 (+0,4%)
Dow Jones index 26.828,47 (+0,6%)
Nasdaq Composite 10.941,17 (+0,4%)
The Asian stock markets were divided on Wednesday. The Japanese services sector is still shrinking, according to Markit, and the growth rate in China has slowed somewhat.
Nikkei 225 22.529,11 (-0,2%)
Shanghai Composite 3.381,35 (+0,3%)
Hang Seng 25,088.36 (+ 0.6%)
The euro / dollar was trading at 1.1814 this morning. At the close of the US stock markets on Tuesday, the currency pair moved at 1.1802.
USD/JPY Yen 105,58
EUR/USD Euro 1,1814
EUR/JPY Yen 124,72
00:30 Purchasing manager index services – July final. (Jap)
03:45 Purchasing manager index services Caixin – July final. (Chi)
09:15 Purchasing manager index services – July (Spa)
09:45 Purchasing manager index services – July (ITA)
09:50 Procurement manager index services – July final. (Fra)
09:55 Procurement manager index services – July final. (Dld)
10:00 Services purchasing manager index – July final. (EUR)
10:30 Procurement manager index services – July final. (UK)
11:00 Retail Sales – June (Call)
11:00 Retail sales – June (eur)
13:00 Mortgage Loans – Weekly (US)
14:15 ADP job report – July (USA)
14:30 Trade Balance – June (US)
15:45 Purchasing manager index services Markit – July final. (US)
16:00 Purchasing manager index services ISM – July (US)
16:30 Oil Stocks – Weekly (US)
07:00 Allianz – Figures second quarter (Dld)
07:00 BMW – Figures second quarter (Dld)
07:00 Commerzbank – Figures second quarter (Dld)
07:00 Deutsche Post – Figures second quarter (Dld)
07:00 Ahold Delhaize – Second quarter results
08:00 Wolters Kluwer – Second quarter figures
13:00 Moderna – Second quarter figures (US)
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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