European stock markets open lower

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(ABM FN-Dow Jones) The European stock markets are facing a lower opening on Friday.

IG anticipates an opening loss of 20 points for the German DAX, a minus of 5 points for the French CAC 40, but a small plus of 3 points for the British FTSE 100.

The European stock exchanges are closed lower on Thursday.

After Wednesday’s solid gains, European stock markets took a step back on Thursday, partly due to the ongoing deadlock in the United States over a new round of US stimulus measures and the ongoing tensions between the United States and China. The two countries will meet on Saturday to discuss compliance with the previously concluded trade deal.

In the meantime, Washington set its sights on Europe. A US trade representative said tariffs for European Union products, including whiskey and Airbus airplanes, will remain unchanged despite attempts by aircraft manufacturers to comply with the World Trade Organization’s bailout on state aid.

Last year, the United States raised tariffs to around € 7.5 billion worth of EU products in retaliation for subsidies to Airbus. US officials also threatened to hike rates on a range of new products this summer.

Spreadex analyst Connor Campbell said the US “did not escalate the situation with new tariffs on vodka, gin and beer,” sparking a new wave of sales. [op de aandelenmarkten] has occurred.

On a macroeconomic level, it was announced in Europe on Thursday that the consumer prices of Germany in July in a final measurement were at the same level as was already known in the provisional figures, namely 0.1 percent annually and 0.5 percent lower on a monthly basis. .

The market was supported by US labor data, which showed that the number of first-time unemployment benefit claims in the United States fell below 1 million for the first time since mid-March. Last week, the number of new applications for aid was 963,000, while economists expected 1.1 million new applications.

Company news

Deutsche Telekom has seen its results increase in the second quarter, aided by the acquisition of the American Sprint. Deutsche Telekom also came up with a new outlook. For the whole of this year, the telecom company expects an adjusted EBITDA after leases of approximately 34 billion euros. Deutsche Telekom previously calculated on 25.5 billion euros. The share rose 1.3 percent.

Thyssenkrupp has seen turnover fall in the third quarter of the current broken financial year, again due to the weak automotive market, which led to the loss. The stock lost 16.3 percent.

RWE has seen results improve in the first six months of this year. The utility maintained the outlook for 2020, but expects to reach the higher end of the issued bandwidths. The stock closed 2.6 percent higher.

Seeing earnings under more pressure than expected in the first six months of 2020, Aegon has decided to withdraw its financial targets for 2019 to 2021. New targets will follow on investor day in December. The 2020 interim dividend will be reduced to 0.06 euros per share. The stock was down 15.3 percent.

Adyen and Zalando are expanding their partnership to process Zalando’s credit card payments in all European markets. The Adyen share price was 2.6 percent higher.

TUI saw its activities almost come to a standstill in the past quarter due to the corona crisis and therefore had to announce a loss of billions on Thursday. TUI was 6.2 percent lower in price.

Carlsberg’s results have been under considerable pressure in the past quarter. The brewer also expressed the expectation that the organic operating profit will decline by 10 to 15 percent in 2020. In the first half of this year, that was a decrease of 8.9 percent. The stock was down 5.8 percent.

Euro STOXX 50 3,342.85 (-0.6%)
STOXX Europe 600       372,53 (-0,6%)
DAX                    12.993,71 (-0,5%)
CAC 40 5,042.38 (-0.6%)
FTSE 100 6,185.62 (-1.5%)
SMI 10,260.11 (-0.2%)
AEX                    569,95 (-0,9%)
BEL 20 3,447.14 (-0.6%)
FTSE MIB               20.257,31 (-0,9%)
IBEX 35                7.250,50 (-0,6%)

AMERICAN SHARES

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

The American stock exchanges are closed even lower on Thursday.

Wall Street initially drew support from labor data on Thursday, which showed that the number of first job claims for unemployment benefits in the United States has fallen below 1 million for the first time since mid-March. Last week, the number of new applications for aid was 963,000, while economists expected 1.1 million new applications. In addition, extended aid applications reached the lowest level since the beginning of April.

However, as the day progressed, fears of a slowdown in the economic recovery prevailed. “The economy needs a new fiscal boost,” said Oxford Economics economist Lydia Boussour. “If that doesn’t work, we run the risk of business stalling and the labor market losing steam again,” she said.

The economist was also referring to the ongoing deadlock in the United States on a new round of US stimulus measures.

While US President Donald Trump signed four decrees last weekend for a new round of financial support, a lasting agreement is delayed. However, the market is of the opinion that such an agreement will eventually be reached, because no agreement will have too great harmful consequences.

In addition, the ongoing tensions between the United States and China hung over the market. The two countries will meet on Saturday to discuss compliance with the previously concluded trade deal.

On a macroeconomic front, it was also announced on Thursday that US import prices rose by 0.7 percent on a monthly basis in July, while export prices increased by 0.8 percent.

The September futures for a barrel of crude oil on the New York Mercantile Exchange on Thursday closed 1.0 percent, or $ 0.43, lower at $ 42.24.

On a macroeconomic level, five publications are on the agenda in the United States on Friday. July retail sales and second quarter labor costs appear on the stock exchange, followed by July industrial production figures, August consumer confidence and June corporate stocks.

Company news

As expected, Cisco has suffered from the corona crisis in the past quarter, and foresees a revenue decline for the current quarter as well. For the current quarter, Cisco is counting on 0.69 to 0.71 cents per share as adjusted earnings. That is lower than the $ 0.75 that the market had foreseen. The share lost approximately 11.5 percent.

Facebook, Google and Twitter have discussed with federal officials how the social media platforms can prevent the spread of disinformation in the days before and after the upcoming presidential election, after US intelligence officials warned of foreign interference. Facebook rose 0.4 percent, Google’s parent company Alphabet gained 0.8 percent and Twitter was up 0.8 percent.

Fannie Mae and Freddie Mac have announced they are introducing a new fee to protect themselves from losses on refinanced mortgages, which they vouch for, which is a signal to followers of market followers of future potential turbulence in the housing market.
Fanny Mae rose 1.9 percent, while Freddie Mac gained 1.6 percent.

The two largest retail property lessors to JC Penney, Simon Property Group and Brookfield Property Partners, are in advanced takeover talks with the department store chain. JC Penney won more than 6.0 percent.

Lyft saw the number of drivers and turnover drop dramatically in the second quarter, due to travel restrictions due to the corona virus. However, CEO Logan Green added that the number of journeys in July was already 78 percent higher than the low in April. The stock fell nearly 5.0 percent.

Thermo Fisher Scientific has decided not to acquire Qiagen because too few shares have been tendered under the offer. Themo wanted to get hold of at least 66.7 percent of the shares, but less than half of the shareholders registered his documents. Qiagen can now face compensation of $ 95 million.

S&P 500 index              3.373,43 (-0,2%)
Dow Jones index            27.896,72 (-0,3%)
Nasdaq Composite           11.042,50 (+0,3%)

ASIA

The Asian stock markets were divided on Friday, but the price results were limited.

Nikkei 225                     23.275,16 (+0,1%)
Shanghai Composite      3.315,45 (-0,2%)
Hang Seng 25,183.93 (-0.2%)

CURRENCY

The euro / dollar was trading at 1.1814. At the close of the American stock exchanges on Thursday, the currency pair still moved at 1.1806 and when the European stock exchanges closed there was still a level of 1.1824 on the plates.

USD/JPY Yen   106,85
EUR/USD Euro  1,1814
EUR/JPY Yen   126,24

MACRO-AGENDA:
4:00 am Retail sales – July (Chi)
4:00 AM Industrial Production – July (Chi)
8:45 AM Inflation – July def. (Fra)
09:30 Economic growth – Second quarter vlpg. (NL)
09:30 International trade – June (NL)
11:00 Trade balance – June (Call)
11:00 Economic growth – Second quarter 2nd estimate (eur)
11:00 Trade balance – June (eur)
11:00 Employment – Second quarter (eur)
2:30 PM Retail sales – July (US)
2:30 PM Labor Costs – Second Quarter (US)
15:15 Industrial production – July (US)
16:00 Consumer confidence Michigan – August vlpg. (USA)
4:00 PM Company Stocks – June (US)

COMPANY NEWS:
– No agenda items

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

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