European stock exchanges open in red

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(ABM FN-Dow Jones) The European stock markets are heading for a lower opening on Thursday.

According to a Mizuho Bank analyst, the Federal Reserve disappointed Wednesday evening. “There was a lot of talk, but little action,” said the analyst of the actions of the Fed and its chairman. According to Mizuho Bank, the market had hoped that the Fed would live up to its word and promise more money.

IG anticipates an opening loss of 120 points for the German DAX, a minus of 49 points for the French CAC 40 and a drop of 42 points for the British FTSE 100.

The European stock markets closed mainly higher on Wednesday, in anticipation of the US interest rate decision. The British FTSE lost 0.4 percent after the British pound strengthened against the dollar. This happened after a slower-than-expected rise in US retail sales in August.

Economists expect the Federal Reserve to signal that the monetary policy rate will remain close to zero until the end of 2023. The central bank will also issue economic forecasts for 2023 for the first time.

On Thursday, the Bank of England will also meet on monetary policy. UK inflation was lower in August than in July and 700,000 jobs have been lost in the UK since the corona crisis.

In the afternoon, retail sales in the US appeared to have increased only slightly in August: 0.6 percent, where economists expected 1.1 percent. Company inventories came as no surprise, but confidence among U.S. homebuilders rose to record levels in September, NAHB reported.

Earlier in the day, the eurozone’s trade balance once again showed an increase in goods exports and imports, although the growth rate did slow.

Company news

European retail companies benefited from Inditex results. The Spanish owner of Zara and Berskha made a profit again, after a loss a quarter earlier due to the corona crisis. Online sales were up 74 percent in the first half year. The share rose 8 percent.

H&M, which also exceeded expectations on Tuesday, posted a share price gain of 1.5 percent. Puma won 1.0 percent.

Lufthansa wants to withdraw 130 aircraft as a result of the corona crisis, Reuters news agency reported. Previously, it was a shrinkage of 100 aircraft. The stock rose 1.7 percent in Frankfurt.

Osram Licht thinks that sales will fall less this year than initially feared due to better market conditions in China and the US. The stock rose 1.4 percent higher.

IMCD was worth 9 percent more. The company has raised approximately 400 million euros with a share offering announced Tuesday for the acquisition of the Indian Signet Excipients. Analysts responded positively to the news.

Alstom has negotiated a lower purchase price for Bombardier’s train arm.

Euro STOXX 50 3,338.84 (+ 0.20%)
STOXX Europe 600       373,13 (+0,58%)
DAX                           13.255,37 (+0,29%)
CAC 40 5,074.42 (+ 0.13%)
FTSE 100 6,078.48 (-0.44%)
SMI 10,552.04 (+ 0.30%)
AEX                                 558,43 (+0,45%)
BEL 20 3,392.90 (+ 0.88%)
FTSE MIB                 19.963,99 (+0,04%)
IBEX 35                       7.110,80 (+1,06%)

AMERICAN SHARES

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

US stock markets closed broadly lower on Wednesday after the Federal Reserve held interest rates steady and said it expected it to stay that way for another three years until the economy emerged from the recession of the corona crisis. The large technology funds in particular fell at the close of the trading day.

The S&P 500 index closed 0.4 percent lower at 3,386.88 points, the Dow Jones index rose 0.2 percent and technology exchange Nasdaq fell 1.7 percent to 11,248.57 points.

Shortly after the interest rate decision, the stock markets rose, but in the end the stock market movement was negative after the comments of Fed chairman Jerome Powell.

The Fed said monetary policy will not tighten until employment is back to full and inflation is at 2 percent and looks set to stay above it for a while. That’s a long way off, commentators concluded, noting the millions of jobs lost due to the coronavirus.

On Thursday, the Bank of England will also meet on monetary policy.

In the afternoon, retail sales in the US appeared to have increased only slightly in August: 0.6 percent, where economists expected 1.1 percent. Company inventories came as no surprise, but confidence among U.S. homebuilders rose to record levels in September, NAHB reported.

The oil price rose nearly 5 percent, after US oil stocks fell sharply last week.

Company news

The energy sector helped the S & P500 profit, thanks to a higher oil price. Oil supplies fell unexpectedly over the past week due to Hurricane Sally, temporarily halting oil supplies. ExxonMobil was up 4 percent, Chevron 3 percent and Shell 0.8 percent.

FedEx closed 6 percent higher after positive quarterly figures. FedEx was running at full speed in the past quarter to keep healthcare, industrial and home shopping supply chains afloat during the corona crisis, and saw earnings soaring as a result.

Adobe closed 4 percent lower. The software company published better than expected quarterly figures on Tuesday, but followed its peers down.

Apple also fell and closed 3 percent lower, as did Nvidia, with a minus of 3.7 percent. Internet giants Amazon.com and Facebook also lost.

The US Federal Trade Commission may take action against Facebook. The committee questions the dominant position of the social media company. Facebook lost 3.3 percent.

Apple company held its product presentation online for the first time on Tuesday, with new versions of its smartwatch and tablets. The iPhone did not get an update for the first time in September.

Snowflake’s IPO was a resounding success for subscribers. The stock went public for $ 120, but closed more than twice as high after the first trading day, at $ 253.

Another stock market novice, JFrog, closed more than 50 percent above the issue price.

S&P 500 index                   3.385,49 (-0,46%)
Dow Jones index            28.032,38 (+0,13%)
Nasdaq Composite           11.050,47 (-1,25%)

ASIA

The Asian stock markets were broadly lower on Thursday. The Bank of Japan did not take action on Thursday, as expected. However, the economic forecasts were revised upwards.

Nikkei 225                     23.328,42 (-0,6%)
Shanghai Composite      3.251,47 (-1,0%)
Hang Seng 24,327.67 (-1.6%)

EVALUATE

The euro / dollar was trading at 1.1757. When the US stock markets closed on Wednesday, the currency pair was still moving at 1.1809 and when the European stock exchanges closed, there was still 1.1840 on the plates.

USD/JPY Yen   105,07
EUR/USD Euro  1,1757
EUR/JPY Yen   123,54

MACRO-AGENDA:
05:00 Bank of Japan – Interest rate decision (Jap)
06:30 Unemployment – August (NL)
08:00 Retail sales – August (UK)
13:00 Bank of England – Interest Rate Decision (UK)
14:30 Support Applications – Weekly (US)
14:30 Housing and Building Permits – August (US)
14:30 Philadelphia Fed index – September (VS)

COMPANY NEWS:
– No agenda items

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