February 28, 2024

Taylor Daily Press

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European stock markets are expected to open lower

European stock markets are expected to open lower

(APMF IN-DOW JONES) European stock markets will open lower on Tuesday, awaiting US inflation data.

IG expects an opening loss of 41 points for the German DAX, minus 11 points for the French CAC 40 and an additional 2 points for the British FTSE 100.

European stock markets closed higher on Monday. They set a new record for the S&P 500, while gains remained limited ahead of US inflation figures due on Tuesday.

In addition, the future monetary policy of central banks remains an important point of focus. Market experts pointed to the statements of Fabio Panetta, President of the Bank of Italy and Director of the European Central Bank, who said at the end of last week that the time to cut interest rates is “fast approaching.”

Danske Bank expects the European Central Bank to cut interest rates three times this year, each time by 25 basis points. The vision is based on a flexible labor market, moderate economic growth, and a continuing process of reducing inflation.

“This is likely to lead to a cycle of interest rate cuts starting on June 24, with cuts of 25 basis points per quarter, or 75 basis points by the end of the year,” Danske Bank said.

Company news

Siemens Energy shares rose 4.9 percent after an increase recommendation from Bank of America. Financial sector stocks also performed well, with gains ranging between 1.1 to 2.6% for Commerzbank and Deutsche Bank. European finances were on the rise anyway.

Sartorius shares lost 2.7 percent, making it the strongest loser among the main German funds. SABB shares lost 0.6 percent.

In Paris, Dassault Systèmes came under pressure, losing 2.0%. Its counterpart in the sector, Safran, also suffered, falling by one percent.

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L'Oréal was the top loser in the CAC 40 on Friday, but rose 2.6 percent on Monday. Unibail-Rodamco-Westfield shares were the strongest gainers, with gains of 2.8 percent.

Adyen stock was the eye-catcher in Amsterdam last week with gains of more than 20 percent after announcing strong quarterly numbers, and it rose another 2.3 percent on Monday. UBS increased its price target.

ASMI lost 1.7% on the AEX on Monday, after announcing the resignation of CEO Benjamin Loh. He will be succeeded by technical director Hisham Massad. ING analysts described the CEO's departure as somewhat surprising.

Unilever shares fell 0.3 percent. A recently outlined strategy to revive Unilever has the full support of activist shareholder Nelson Peltz, according to CEO Hein Schumacher. As reported by Reuters news agency on Monday.

Euro Stoxx 50 4,746.35 (+0.7%)

STOXX Europe 600 487.46 (+0.5%)

DAX 17,037.35 (+0.7%)

CAC 40 7,689.80 (+0.6%)

FTSE 100 7,573.69 (0.0%)

SMI 11,179.30 (+0.8%)

EEX 854.88 (+0.4%)

Bill 20 3,715.85 (+1.1%)

FTSE MIB 31,456.73 (+1.0%)

IBEX 35 9,984.70 (+0.9%)

US stocks

Wall Street opened in the red on Tuesday, according to US futures, after closing slightly lower on Monday, with earlier gains evaporating ahead of Tuesday's inflation numbers.

The release of the CPI on Tuesday is seen as the next major hurdle to the recent stock market rally.

“The Fed continues to consider lowering interest rates to offset the expected tightening in the financial environment as inflation returns to 2 percent, but the timing and magnitude remain uncertain given the strength of the economy and continued uncertainty about the direction of inflation,” SGH Macro. The advisors said.

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March crude oil futures closed $0.08 higher at $76.92 on the New York Mercantile Exchange on Monday.

On the macroeconomic level, two publications are scheduled for Tuesday in the United States. Business confidence in small and medium-sized enterprises and inflation data for January will be published before the stock market opens.

Company news

Amazon founder Jeff Bezos sold nearly 12 million shares of Amazon stock on February 7 and 8, generating proceeds of about $2 billion. This emerged from a document filed with the US Securities and Exchange Commission. Bezos sold shares for an average of $170.21 per share. This was the first time in more than two years that Bezos sold shares in the company. The share decreased by about 1.0 percent.

Cisco plans to cut thousands of jobs as part of a restructuring that will see the company focus more on fast-growing markets. This was reported by Reuters news agency on Friday evening, based on statements from insiders. The share fell slightly on Monday. Cisco will report its quarterly results on Wednesday after the Wall Street close.

Diamondback Energy announced its merger with Endeavor Energy Resources on Monday, creating a $50 billion oil and gas giant. Diamondback will pay about $8 billion in cash and 117.3 million common shares for Endeavor Energy, valuing the company at about $26 billion, including debt. Diamondback shares rose about 9.3 percent.

S&P 500 5,021.84 (-0.1%)

Dow Jones 38,797.38 (+0.3%)

Nasdaq Composite 15,942.55 (-0.3%)

Asia

In Asia, Chinese stock markets remain closed for the New Year. Significant gains are being made in Japan, and for the first time since 1990, the index has registered above 38,000 points, albeit briefly.

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Nikkei 225 37,961.55 (+2.9%)

Shanghai Composite 2,865.90 (close result on February 9)

Hang Seng 15,746.58 (closing result February 9)

Currencies

The euro/dollar was trading at 1.0767. When US stock exchanges closed on Monday, the currency pair was still at 1.0774 and when European stock exchanges closed, the value was still at 1.0775.

USD/JPY 149.52 yen

EUR/USD EUR 1.0767

EUR/JPY 160.97

Overall agenda:

00:00 Chinese stock markets closed

08:00 Unemployment – ​​December (UK)

11:00 ZEW Economic Sentiment Survey – February (Daylight Saving Time)

12:00 SME Confidence – January (US)

2:00 PM OPEC monthly report (Oos)

14:30 Inflation – January (US)

Business News

07:00 Carrefour – Q4 figures (France)

13:00 Coca-Cola – Q4 numbers (US)

1:00 PM Hasbro – Q4 Numbers (US)

10:00 PM Lyft – Q4 Numbers (US)

10:00 PM Robinhood Markets – Q4 Numbers (US)

Source: ABM Financial News

ABM Financial News is a resource for stock market news, video and data, both for real-time trading platforms and trading rooms and for online and offline media publications. The information in this article is not intended to provide professional investment advice or a recommendation to make particular investments.

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