European stock markets open lower

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(ABM FN-Dow Jones) European stock markets are set to face a lower opening Friday ahead of the official US jobs report.

IG anticipates an opening loss of 25 points for the German DAX, a minus of 3 points for the French CAC 40 and a drop of 16 points for the British FTSE 100.

Stock markets in Europe ended lower on Thursday. Some of the gains made on Wednesday were returned, said David Madden of CMC Markets.

The markets are waiting for a new support package in the United States, and tensions between the US and China are rising again, according to the market analyst.

Germany released its factory orders for June on Thursday, which were further recovered after a start in May. Adjusted for seasonal effects, orders rose 27.9 percent on a monthly basis. On an annual basis, there was still a decrease of 11.3 percent. The increase in June was much stronger than economists expected.

According to ING economist Carsten Brzeski, German industry appears to be finally benefiting from the lifted corona lockdown measures. “The hope for a V-shaped revival, not necessarily recovery, remains alive,” said Brzeski.

The Bank of England left the interest rate at 0.1 percent on Thursday. The British central bank said the economy in the United Kingdom probably contracted by about 20 percent in the second quarter, due to the nationwide lockdown to get the corona virus under control.

According to the committee, the British gross domestic product will not return to the level of late 2019 until the end of 2021. The central bank also said it expects inflation to likely stay below 2 percent, implying that the bank will not be in a hurry to adjust its policies.

“There was an upward revision to the 2020 GDP forecast and the 2020 and 2021 unemployment forecasts and that helped the pound,” said CMC’s Madden.

Company news

Merck suffered from the corona outbreak in the second quarter, but became slightly more optimistic over the year. The share price closed 1.6 percent higher.

ING’s results were under pressure in the second quarter and a lot more money went into the straw pot. According to analysts at Morgan Stanley, ING performed slightly better than expected last quarter. As a windfall, analysts pointed to the expectation that bad loan provisions will decline in the second half of the year. The share therefore rose 5.6 percent.

UniCredit made nearly a third more provisions for bad loans in the second quarter, but net profit was higher than analysts expected. UniCredit maintained its earnings forecast for this year. The share price recorded a 3.9 percent loss.

KBC performed much better than expected last quarter. The net result for the second quarter amounted to 210 million euros. Analysts assumed 153 million euros. Kepler Cheuvreux therefore spoke of a positive surprise. The share initially rose but lost 2.7 percent in the end.

Adidas recorded a loss in the second quarter on significantly lower sales, as most of the sporting goods manufacturer’s stores were closed due to the corona measures. Adidas foresees an improvement in the operating result for the current quarter of approximately 1 billion euros compared to the second quarter. Because of all the uncertainty, the sportswear giant did not give an outlook for the entire financial year. The stock closed 1.9 percent higher.

Siemens’ earnings fell sharply in the past quarter as a result of the corona outbreak. For the full fiscal year, Siemens continues to expect a “modest” decline in comparable sales. Last quarter, it fell by 5 percent. Due to the uncertain market conditions, the company did not want to issue a profit forecast. The share price ended 1.6 percent higher.

Lufthansa went deep into the red in the second quarter. The second half of the year will also still be loss-making, the German airline warned, despite operating costs falling by 59 percent last quarter. The share price went down 1.2 percent on Thursday.

Adecco wrote red figures for the first half of 2020 and achieved a considerably lower turnover. Adecco expects a further recovery in the third quarter, partly on the basis of cost control. The share rose 0.5 percent in price.

NN Group’s operating profit improved slightly in the first half of 2020 and the insurer plans to pay a double dividend. The share price went up 1.5 percent.

Optical chain GrandVision, which may be taken over by EssilorLuxottica, has received a visit from bailiffs on behalf of the last. The GrandVision share price closed 0.6 percent lower, that of EssilorLuxottica fell 1.3 percent.

Euro STOXX 50 3,240.39 (-0.9%)
STOXX Europe 600        362,49 (-0,7%)
DAX                  12.591,68 (-0,5%)
CAC 40 4,885.13 (-1.0%)
FTSE 100 6,026.94 (-1.3%)
SMI 10,067.13 (-0.3%)
AEX                     558,46 (-0,8%)
BEL 20 3,308.62 (-0.7%)
FTSE MIB             19.475,15 (-1,3%)
IBEX 35               6.957,90 (-1,2%)

AMERICAN SHARES

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

The US stock markets ended higher on Thursday.

The picture varied; investors welcomed better-than-expected data on US aid applications but at the same time waited for a new stimulus package from Washington. In addition, tensions between the United States and China are also looming over the market, despite news that the two countries will be back in talks on August 15 in an attempt to smooth out the problems surrounding the Phase 1 trade deal.

“Does Congress come to an agreement? I don’t think the market is anticipating a disappointment,” said strategist Seema Shah of Principal Global Investments. “If government aid is cut, the recovery will be in real danger,” she warned.

“The timing of these political confrontations is difficult to predict, but the feeling that a compromise will eventually be reached prevails,” said CMC Markets market analyst David Madden. “Some concessions have been made on both sides and that indicates progress is being made,” he said.

On a macroeconomic front, it became known that the number of first claims for unemployment benefits in the US fell by 249,000 to 1.186 million aid applications last week, while the market was expecting 1.423 million new applications.

Investors see this as good news on the economic front but don’t want to get too ahead of the curve ahead of the US jobs report [vrijdag]”, says AvaTrade market analyst Naeem Aslam. In addition, one million new applications for support is still a lot.

“The road to recovery is long and difficult. The US economy will remain under pressure as long as unemployment benefits remain at this high level,” said the analyst.

Gold prices hit a new record high and are now approaching USD 2,100 per troy ounce. The oil price fell on Thursday after a volatile session. A barrel of West Texas Intermediate became 0.6 percent cheaper on the settlement at $ 41.95.

Company news

Facebook and Twitter removed a video of President Trump on Wednesday saying that children are virtually immune to the coronavirus. With this ruling, Trump violated the rules of the two companies to prevent false information about corona from being spread.

Instagram, part of Facebook, has launched a new feature in the United States that allows the creation of short videos. For example, Facebook wants to compete better with TikTok. Facebook rose 6.5 percent.

Burger King’s parent company clearly suffered from the corona crisis in the second quarter, but performed slightly better than expected. Restaurant Brands International’s share lost 3.7 percent.

Papa John’s fell 1.6 percent after the pizza chain reported better-than-expected earnings for the quarter, but disappointing sales.

A US Congress commission has requested information from Eastman Kodak after it was announced last week that the company had received a $ 765 million government loan to manufacture drugs at its U.S. factories. The committee is concerned about Kodak’s “lack of pharmaceutical experience” and the granting of stock options to executives and directors ahead of the announcement. The SEC has also started an investigation, it was found earlier this week. The share rose 8.1 percent.

Shares of arms companies were on the rise after the New York prosecutor announced that a lawsuit was being launched to dismantle the NRA. Smith & Wesson went up 1.4 percent and Vista Outdoor even 11.1 percent.

Uber published its results for the second quarter on Thursday after the market. The impact of the corona pandemic was still felt during the reporting period and Uber Eats outperformed the traditional taxi service.

S&P 500 index               3.349,16 (+0,6%)
Dow Jones index            27.386,98 (+0,7%)
Nasdaq Composite           11.108,07 (+1,0%)

ASIA

The Asian stock markets were broadly in the red on Friday.

Nikkei 225             22.251,36 (-0,7%)
Shanghai Composite      3.337,43 (-1,5%)
Hang Seng 24,364.43 (-2.3%)

CURRENCY

The euro / dollar was trading at 1.1837 this morning. When the US stock markets closed on Thursday, the currency pair was still moving at 1.1872.

USD/JPY Yen   105,57
EUR/USD Euro  1,1837
EUR/JPY Yen   124,96

MACRO-AGENDA:
05:00 Export – July (Chi)
06:30 Industrial production – June (NL)
08:00 Industrial production – June (Dld)
08:45 Industrial production – June (Fra)
14:30 Job growth and unemployment – July (US)
16:00 Wholesale Stocks – June (US)
9:00 pm Consumer Credit – June (US)

COMPANY NEWS:
07:00 Corbion – Figures second quarter (NL)

ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.Beeld: Deutsche Börse AG

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