European stock markets open lower |


(ABM FN-Dow Jones) The European stock markets are heading for a lower opening on Wednesday, while the euro falls.

IG anticipates an opening loss of 90 points for the German DAX, a minus of 34 points for the French CAC 40 and a drop of 5 points for the British FTSE 100.

Stock markets in Europe ended well higher on Tuesday. CMC Markets analyst Michael Hewson saw that the stock exchanges lifted the hope that a new American support package will still be agreed and positive reports about a corona vaccine in Russia.

In particular, the analyst also pointed to the automotive sector in Germany which benefited from strong sales data from China.

The macro news was also positive: the German ZEW confidence index rose to 71.5 in August, which was quite unexpected. In advance, economists expected a drop from 59.3 in July to 54.5 points this month. ING economist Carsten Brzeski pointed to the fact that the expectation index rose to its highest level since 2004, but deteriorated again under the current circumstances.

UK unemployment was 3.9 percent in June, an unexpectedly stable rate, as the market anticipated an increase to 4.2 percent. The British statistics office noted that the stabilization is mainly due to the fact that the unemployed are less looking for work. In addition, 7.5 million Britons are registered as working, but are actually on leave.

A barrel of WTI oil became more expensive on Tuesday. A September-future West Texas Intermediate was down 0.7 percent in green at $ 42.24.

The euro / dollar traded around the European close at 1.1780.

Company news

Car manufacturers were on the rise. Daimler won 3.5 percent and BMW 5.8 percent. Volkswagen rose 4.3 percent.

Bayer acquires the British KaNDy Therapeutics and pays at least $ 425 million for this. On top of that are milestone payments of up to $ 450 million. With this acquisition, Bayer aims to strengthen its female healthcare pipeline. The Bayer share price lost 2.6 percent in value.

The German online store chain Zalando and supplier of meal boxes HelloFresh saw the number of customers increase significantly in the past quarter, and with it the results. HelloFresh also decided to further increase the profit forecast for 2020. The Zalando share price gained 1.9 percent and HelloFresh fell 0.4 percent.

Vestas Wind Systems made a loss in the second quarter of this year, but turnover did increase. Vestas presented a renewed outlook on Tuesday and is now counting on a turnover of 14 to 15 billion euros, as it did in the previous outlook. The EBIT margin, on the other hand, has been reduced from 7 to 9 percent to 5 to 7 percent. This includes a provision of 175 million euros. Vestas expects investments to be less than 700 million euros for this year, whereas in the old forecast approximately 700 million was still assumed. The Vestas share price rose 9.5 percent.

Euro STOXX 50 3,332.12 (+ 2.2%)
STOXX Europe 600        370,76 (+1,7%)
DAX                  12.946,89 (+2,0%)
CAC 40 5,027.99 (+ 2.4%)
FTSE 100 6,154.34 (+ 1.7%)
SMI 10,153.24 (+ 0.6%)
AEX                     565,56 (+1,5%)
BEL 20 3,433.60 (+ 2.3%)
FTSE MIB             20.209,11 (+2,8%)
IBEX 35               7.263,50 (+3,0%)


Wall Street will open in green on Wednesday, according to American futures.

The US stock markets ended lower on Tuesday. The S&P 500 was previously on track for a new record.

Trade was fairly calm. On average, so far in August, about 20 percent fewer shares are traded per day on the New York Stock Exchange than usual for this time of year, according to Dow Jones Market Data. Cboe’s volatility index is also at its lowest level since the end of February.

Sentiment was initially positive as US President Trump and the Democrats appear to be open to new talks about a broad economic support package due to the corona crisis. A unilateral Trump decree to extend emergency aid for the unemployed seems a sham. The $ 400 a week he pledges will only be paid out if the individual US states contribute $ 100 and they don’t agree to the program.

If there is no deal, the market will correct quickly, expects Nicholas Brooks of Intermediate Capital Group.

The report that Russia has approved a vaccine against the coronavirus was well received by investors. A daughter of President Vladimir Putin is said to have already successfully tested the drug personally. However, experts point to the fact that Russia has not yet conducted a Phase 3 study of the potential vaccine, and this may question its efficacy.

Meanwhile, the virus outbreak in the US seems more under control; Monday was the second day in a row that less than 50,000 new infections were reported. The total number of infections in America stands at 5.1 million, John Hopkins University reported. In some parts of Europe, the virus seems to be flaring up again, in places where it seemed to be under control.

“The conflicting messages are hard for the markets to digest,” said JPMorgan Asset Management’s Hugh Gimber.

On a macroeconomic level, it was quiet on Tuesday. Confidence among American SMEs fell more sharply than expected in July. “Summer is challenging for small businesses,” said economist Bill Dunkelberg.

US producer prices rose more sharply than expected in July, by 0.6 percent instead of the predicted 0.3 percent.

The oil price fell on Tuesday, waiting for some important reports on the market. A barrel of West Texas Intermediate became 0.8 percent cheaper at $ 41.61 at settlement.

Not only will figures be released this week on US weekly oil supplies, but reports from OPEC and IEA. “The markets will have a close look at what the expectations are for demand and what that means for the oil balance in the coming months,” said Warren Patterson of ING.

Company news

Tech stocks dragged the Nasdaq down. Amazon lost 2.1 percent and Apple fell 3.0 percent.

American Express is said to be in advanced talks to acquire online credit company Kabbage, according to Bloomberg news agency. The share rose 1.6 percent.

Boeing ended the day 0.4 percent higher, almost completely forfeiting its profit. Boeing delivered just 4 planes in July and 43 orders for the 737 MAX are being canceled. No further orders were received.

A judge in California ruled on Monday that Uber Technologies and Lyft must immediately treat their drivers as employees under a new law in the US state. The injunction is a direct threat to the business model of the taxi app giants and other companies in the so-called ‘gig economy’. Uber and Lyft closed 3.4 percent and 1.3 percent lower on Tuesday, respectively.

Qualcomm saw its stock market value increase by 2.3 percent after a report that the judge dismissed the verdict in a US government competition against the chipmaker on appeal.

Food retailer Sysco posted a loss of $ 0.29 per share during the quarter, in line with expectations, while the corona crisis caused sales to decline 43 percent. The share went up 1.2 percent.

International Flavors and Fragrances fell 4.0 percent, after a 40 percent decline in operating profit. The quarterly dividend of the fragrance and flavorings manufacturer has, however, been increased.

PPG Industries benefited in July from improved trends in Europe and China as well as within the global industry, which means that revenue in the third quarter is expected to decline less sharply than previously expected. The paint specialist is therefore no longer counting on a fall in turnover of 8 to 15 percent for the third quarter, but now from 6 to 11 percent excluding the impact of exchange rates. The PPG Industries stock closed 4.5 percent higher on Tuesday.

Cruise lines did well on Tuesday. Royal Caribbean was up 2.3 percent and Carnival 2.4 percent.

S&P 500 index               3.333,69 (-0,8%)
Dow Jones index            27.686,91 (-0,4%)
Nasdaq Composite           10.782,82 (-1,7%)


The Asian stock markets were divided on Wednesday.

Nikkei 225             22.850,58 (+0,4%)
Shanghai Composite      3.273,75 (-2,0%)
Hang Seng 24,842.89 (-0.9%)


The euro / dollar was trading at 1.1716 this morning. At the close of the US stock exchanges on Tuesday, the coin pair moved at 1.1730.

The euro is up more than 10 percent since the dip against the dollar in March. A downward correction for the euro appears in the works, according to Swissquote Bank analyst Ipek Ozkardeskaya.

USD/JPY Yen   106,74
EUR/USD Euro  1,1716
EUR/JPY Yen   125,04

08:00 Economic growth – Second quarter vlpg. (UK)
08:00 Industrial production – June (UK)
08:00 Trade balance – June (UK)
11:00 Industrial production – June (eur)
1:00 PM Mortgage Applications – Weekly (US)
14:30 Inflation – July (US)
4:30 PM Oil Stocks – Weekly (US)
00:00 OPEC – Monthly Report (East)

07:00 ABN AMRO – Figures second quarter
07:00 E.ON – Figures second quarter (Dld)
08:00 Just Eat Takeaway – Second quarter figures
14:00 Tencent – Figures second quarter (Chi)
22:00 Lyft – Figures second quarter (US)
22:00 Cisco Systems – Fourth Quarter Figures (US)

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