(ABM FN-Dow Jones) European stock markets will open higher on Monday, after Jackson Hole is behind us and sentiment in Asian equity markets is at its best.
IG expects an opening gain of 79 points for the German DAX and an increase of 46 points for the French CAC 40. The London Stock Exchange is closed today.
European stock markets closed flat to slightly higher on Friday, following a speech by Federal Reserve Chairman Jerome Powell.
All eyes were also on Jackson Hole for a speech by Federal Reserve Chair Jerome Powell, and later in the evening ECB President Christine Lagarde spoke as well.
The Federal Reserve is prepared to raise interest rates further if necessary. Powell said the central bank also wants to maintain a restrictive policy until inflation falls sustainably.
“Inflation has come down, but it’s still very high,” Powell said. The Fed chair said that the central bank is pleased with the progress made in reducing inflation, but that there is “a long way to go”.
On Friday, Powell acknowledged that there was uncertainty about how to raise interest rates to keep the economy in check.
“He says the job isn’t done yet,” said investment strategist Joe Ferreira of Gateway Investment Advisers. “The economy seems to be spinning around too fast in his opinion, so I think that’s more of a red flag than a caution.”
“We’re not done yet,” said ECB President Christine Lagarde after the Powell meeting in Jackson Hole. Lagarde reiterated that inflation should return to 2 percent. “That’s the goal. That’s the mission,” Lagarde said.
On the macro level, it was announced on Friday that the German economy experienced a halt in the second quarter, while Germany’s gross domestic product shrank by 0.2 percent year on year.
Germany’s business climate fell more than expected in August. The confidence index decreased from 87.3 to 85.7.
Company news
In Frankfurt, Hannover-Roeck advanced, with a profit of 1.3 percent. Siemens rose 0.8 percent, ION 0.8 percent and Daimler 3.3 percent.
In Paris, Stellantis rose 1.1 percent, while Unibel-Rodamco-Westfield fell 0.8 percent.
Heineken shares rose 0.5 percent after the brewer announced it had sold its operations in Russia at a loss of 300 million euros. By the way, Heineken expects the deal to have a minimal impact on diluted earnings per share. The outlook for 2023 has also not changed due to divestment.
Euro Stoxx 50 4,236.25 (+0.1%)
Stokes Europe 600 451.39 (0.0%)
DAX 15,631.82 (+0.1%)
CAC 40 7,229.60 (+0.2%)
FTSE 100 7,338.58 (+0.1%)
SMI 10,956.90 (-0.2%)
IEX 733.37 (-0.1%)
Bell 20 3,622.42 (+0.1%)
FTSE MIB 28,208.45 (+0.5%)
IBEX 35 9,338.90 (+0.2%)
US stocks
Wall Street opens higher on Monday, according to US Futures.
US stock markets closed higher on Friday after Federal Reserve Chairman Jerome Powell’s speech.
ING said the Fed appears to be holding on to the option of raising interest rates again this year, adding that it doesn’t expect that to actually happen.
On the macro front, it was reported that US consumer confidence in the economy declined in August, while inflation expectations rose slightly. The Consumer Confidence Index fell from 71.6 in July to 69.5. The inflation forecast for the next 12 months was 3.5 percent, compared to 3.4 percent in July.
October futures contracts for a barrel of West Texas Intermediate crude closed up $0.78 on Friday at $79.83 on the New York Mercantile Exchange.
There are no macroeconomic releases on the agenda in the US on Monday.
Company news
Nvidia saw Thursday’s price hike almost completely evaporate on Friday, despite better-than-expected quarterly numbers. The stock closed down about 2.2 percent on Friday.
Sector peer Marvell Technology reported better-than-expected earnings last quarter, but the outlook released was far too cautious for investors. The stock fell about 6.0 percent.
Affirm, the financial technology company, rose 28.5 percent after a lower-than-expected fourth-quarter loss.
The retailer gap rose by nearly 7.0 percent, although results for the past quarter were disappointing.
Shares of Hawaiian Electric fell nearly 20.0 percent after reports that Maui County is suing the company over Hawaiian Electric’s high-voltage power lines that caused recent wildfires on the island.
Software company Workday posted better-than-expected results for the past quarter and raised its forecast. The share rose by about 5.7 percent.
S&P 500 4,405.71 (+0.7%)
Dow Jones Index 34,346.90 (+0.7%)
NASDAQ Composite 13,590.65 (+0.9%)
Asia
Asian stock markets rose significantly on Monday.
Nikkei 225 32,140.74 (+1.6%)
Shanghai Composite 3,134.44 (+2.3%)
Hang Seng 18,260.91 (+1.7%)
currencies
The euro / dollar was traded at 1.0804. When the US stock markets closed on Friday, the currency pair was still trading at 1.0805 and when the European stock markets closed, there was still a position at 1.0785.
US dollar / Japanese yen 146.47 yen
EUR/USD EUR 1.0804
EUR/JPY 158.25
Overall agenda:
09:00 London Stock Exchange closes
10:00 Money Supply and Loans – July (in EUR)
Company news:
– There are no items on the agenda
Source: ABM Financial News
ABM Financial News is a resource for stock market news, video and data, whether for real-time trading platforms and trading rooms or for online and offline informational publications. The information in this article is not intended to provide professional investment advice or a recommendation to make certain investments.
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