European stock markets open in red

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(ABM FN-Dow Jones) European stock markets are set to face a lower opening on Thursday, as no progress appears to be made in Washington with a new corona support package.

IG anticipates an opening loss of 60 points for the German DAX, a minus of 15 points for the French CAC 40 and a drop of 44 points for the British FTSE 100.

European stock markets are closed higher on Wednesday.

European equity markets moved up yesterday on the quarterly results of Deutsche Bank and Commerzbank, among others, and on new macro figures indicating economic recovery. In addition, The Wall Street Journal reported that China and the US meet on August 15 to smooth out necessary folds in their relationship.

Activity in the European services sector recovered to growth in July. The euro area purchasing managers index for the services sector rose from 48.3 in June to 54.7 in July. The Spanish and French services sectors showed growth again in June, followed by Italy and Germany in July.

Markit chief economist Chris Williamson pointed out that growth had not been that strong in more than two years.

Retail also rose further in June. In June, eurozone retail sales, by volume, grew by 5.7 percent month-on-month. There was an increase of 1.3 percent on an annual basis.

Despite these positive data, investors remain uncertain, which seems to translate into an increasing gold price. This rose to record highs in the night from Tuesday to Wednesday. Gold now trades above $ 2,000.

“While the markets continue to recover cautiously, the surge in the gold price is a reminder of the persistent fear of the corona virus and geopolitical tensions between China and the US,” said market analyst Russ Mold of AJ Bell.

Company news

BMW has had a difficult second quarter, but nevertheless maintained the outlook for the full fiscal year. BMW remains cautiously optimistic for the second half of the year. The share fell 3.5 percent.

Ahold Delhaize performed significantly better than expected in the second quarter of 2020 and decided to increase both the dividend and the outlook. Ahold Delhaize also expects to convert 7 billion euros online by 2020. That is a year earlier than initially thought. The stock won 5.3 percent.

Despite the corona crisis in the second quarter, Commerzbank managed to make a profit, although it was slightly lower than a year ago. Based on the current situation and provided there is no second lockdown, Commerzbank expects stable revenues for retail and small business customers, while a greater impact of the corona crisis on corporate customers is feared. Commerzbank also counts on risk costs that rise to 1.3 billion to 1.5 billion euros. On Wednesday the stock closed 4.9 percent higher.

Allianz reported a lower operating profit in the second quarter of 2020 compared to a year earlier and also saw its revenues decline. Allianz withdrew its outlook for this year at the end of April due to the uncertainties associated with the consequences of the corona outbreak and repeated these uncertainties on Wednesday. The share was 0.5 percent lower.

Deutsche Post DHL saw earnings pick up sharply in the second quarter of this year, as a result of the corona crisis. Free cash flow was EUR 605 million positive. A year earlier, there was still a negative cash flow of 547 million euros. The share rose 2.8 percent.

Just Eat Takeaway has signed a three-year agreement with AmRest to deliver meals from some of the restaurtants at Burger King and the Pizza Hut operated by AmRest, among others. The share price was 1.2 percent higher.

Accor had significantly lower sales in the first half of 2020 and plunged into the red. However, the stock closed 3.5 percent higher due to signs of recovery.

Euro STOXX 50 3,268.38 (+ 0.4%)
STOXX Europe 600       365,16 (+0,5%)
DAX                    12.660,25 (+0,5%)
CAC 40 4,933.34 (+ 0.9%)
FTSE 100 6,104.72 (+ 1.1%)
SMI 10,097.97 (-0.6%)
AEX                    563,05 (+0,9%)
BEL 20 3,330.49 (+ 0.3%)
FTSE MIB               19.740,20 (+0,6%)
IBEX 35                7.039,70 (+0,3%)

AMERICAN SHARES

Wall Street opens in red on Thursday, according to American futures.

The US stock markets closed even higher on Wednesday.

The market drew support yesterday from reports from The Wall Street Journal about a possible meeting between China and the United States. Both countries want to talk to each other again on August 15, according to the business newspaper. During this conversation, senior officials from both camps would meet and discuss the problems that the two countries are experiencing in meeting the commitments from the Phase 1 trade deal.

Economists are concerned that a rise in coronavirus infection rates in the US could hinder economic recovery as some regions are scaling back earlier relaxation of measures to curb new infections. However, the number of new infections has fallen this week, adding to optimism about a faster economic recovery.

“What we have seen so far is that economic activity and contagion rates have been disconnected,” said State Street Global Advisors strategist Altaf Kassam. “In the future we will be linking them much more. Economic activity and infection rates will be judged much more in correlation,” he said.

On a macroeconomic level, it was announced in the United States on Thursday that private sector employment in the United States rose much less than expected in July, although the figure for June was revised upwards. The number of jobs rose by 167,000 in July. The market anticipated an increase of 1.0 million jobs in advance. However, the previously reported increase of 2.37 million jobs in June was revised to an increase of 4.31 million jobs.

Rabobank’s market analyst Philip Marey spoke of a major setback. Marey believes that the strong upward revision in June is an adjustment of the ADP in order to keep up with official job figures.

The number of mortgage applications fell by 5.1 percent in the United States last week. The market index fell from 841.9 last week to 798.8.

The US trade deficit declined slightly in June. The deficit declined from a revised $ 54.8 billion in May to $ 50.7 billion in June, while exports increased by $ 13.6 billion to $ 158.3 billion and imports increased by $ 9.5 billion to 208.9 billion dollars.

In addition, the market had to process two purchasing manager indices for the services sector. Procurement data from research agency Markit indicated a stable level of activity in the services sector. The index rose from 47.9 in June to 50.0 in July. The ISM showed an acceleration in growth in activity. The ISM index was 58.1 compared to 57.1 in June.

The September future for a barrel of crude closed the $ 0.49, or 1.2 percent, higher at $ 42.19 on the New York Mercantile Exchange on Wednesday. The most recent data from the EIA showed on Wednesday that US crude oil stocks had fallen by just 7.4 million barrels to 518.6 million barrels in the week ending July 31.

On a macroeconomic level, only weekly aid applications are on the agenda in the United States on Thursday.

Company news

Walt Disney suffered a significant loss in the past quarter as a result of the corona outbreak. Disney posted a loss of $ 4.7 billion, or $ 2.61 a share, compared to a profit of $ 0.79 a share in the same period a year earlier. Sales also declined, even 42 percent to $ 11.8 billion. Investors, however, seem to like the progress Disney + has made in bringing in new users. The share rose more than 8.0 percent.

The U.S. government has ordered 100 million doses of a potential corona vaccine from Johnson & Johnson. The share won about 0.7 percent.

Beyond Meat achieved higher sales in the second quarter thanks to rising volumes, while the loss also increased slightly. The company spoke of a period of growth amid a very challenging climate. The share lost over 7.0 percent.

CVS Health increased the outlook for the full year after an excellent second quarter. The share was 1.3 percent lower.

Thomson Reuters rose 0.5 percent. The group posted a marginally lower profit, but the adjusted profit increased, resulting in a better performance than expected on balance.

Moderna nevertheless saw its loss increase in the second quarter, despite higher sales. The American pharmaceutical company saw sales increase to more than $ 66 million in the quarter, from $ 13 million in the same period last year. Operating expenses also increased, bringing Moderna to an operating loss of $ 122 million. Due to an investment in mRNA-1273, which should ultimately yield a corona vaccine, Moderna expects to release more this year. Moderna has already received approximately $ 400 million for the supply of a possible vaccine. The share fell by more than 3.5 percent.

S&P 500 index              3.327,77 (+0,6%)
Dow Jones index            27.201,52 (+1,4%)
Nasdaq Composite           10.998,40 (+0,5%)

ASIA

Asian markets were down broadly on Thursday.

Nikkei 225                     22.362,96 (-0,6%)
Shanghai Composite      3.364,79 (-0,4%)
Hang Seng 24,692.59 (-1.6%)

CURRENCY

The euro / dollar was listed at 1.1878. At the close of the American stock exchanges on Wednesday, the currency pair moved at 1.1865 and at the close of the European stock markets there was still a position of 1.1896 on the plates.

USD/JPY Yen   105,51
EUR/USD Euro  1,1878
EUR/JPY Yen   125,31

MACRO-AGENDA:
06:30 Inflation – July (NL)
08:00 Factory Orders – June (Dld)
10:00 Industrial production – June (ITA)
13:00 Bank of England – Interest rate decision (UK)
14:30 Aid Applications – Weekly (US)

BUSINESS NEWS:
07:00 Adecco – Second quarter figures (Zwi)
07:00 Adidas – Figures second quarter (Dld)
07:00 Credit Agricole – Second quarter figures (Fra)
07:00 Deutsche Lufthansa – Figures second quarter (Dld)
07:00 Deutsche Telekom – Figures second quarter (Dld)
07:00 Henkel – Figures second quarter (Dld)
07:00 Merck KGaA – Figures second quarter (Dld)
07:00 Siemens – Figures third quarter (Dld)
10:00 PM Uber – Second Quarter Figures (US)

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