(ABM FN) European stock markets will open higher on Wednesday, in the run-up to the US Federal Reserve’s interest rate decision.
IG expects an opening gain of 47 points for the German DAX index, as well as 18 points for the French CAC 40 index and a rise of 15 points for the British FTSE 100 index.
European stock markets closed higher on Tuesday, as investors became more confident that the conflict in the Middle East will not escalate further.
Frank Franken of Edmond de Rothschild Bank said operating results were higher than expected this quarter. Most companies have been able to increase profits thanks to better margins and large cash positions, and instead of a flat profit for the third quarter, we are heading towards earnings growth of 3 percent or even better, according to Franken.
There was good news about inflation in the Eurozone. This percentage appears to have declined sharply in October, reaching 2.9% after 4.3% in September. Core inflation, excluding volatile energy and food prices, remained at a relatively high level, but also fell from 4.5% to 4.2%.
The euro fell on Tuesday afternoon in response to lower inflation.
A larger-than-expected decline in inflation could pave the way for the European Central Bank to cut interest rates from the middle of next year. “Core inflation declined across an encouraging broad range in both goods and services, although services prices are clearly firmer,” said Thomas Dvorak of Oxford Economics. Inflation is expected to fall below the European Central Bank’s target of 2 percent next year.
Other data on Tuesday revealed that the euro zone economy contracted by 0.1 percent in the third quarter.
BASF stock was one of the strongest rising stocks on Tuesday. The German chemical company posted red numbers in the third quarter and revised its 2023 forecast downward. Trading value was under great pressure due to falling prices and volumes. The share is still high at more than four percent.
AB InBev stock closed up 5.5%. The brewer saw an increase in trading volume despite lower volumes and will buy back $1 billion worth of shares. Rival Carlsberg also recorded strong sales growth, but remains closed in the red.
DSM-Firmenich stock was the best performer in Amsterdam and closed up more than 7 percent. The company had lower revenue and adjusted EBITDA in the third quarter of 2023, and also revised its full-year guidance downward.
In Paris, shares of Bouygues and the Unibail-Rodamco Real Estate Fund were favorites, with gains of 4 percent or more. Shares of train maker Alstom, car maker Stellantis and steel group ArcelorMittal rose more than three percent.
Euro Stoxx 50 4,061.12 (+0.81%)
STOXX Europe 600 433.66 (+0.59%)
DAX 14,810.34 (+0.64%)
CAC 40 6,884.51 (+0.82%)
FTSE 100 7,321.72 (-0.08%)
SMI 10,391.16 (+0.09%)
EX 718.28 (+0.59%)
Bill 20 3,356.00 (+1.55%)
FTSE MIB 27,741.91 (+1.47%)
IBEX 35 9,017.30 (+0.04%)
Wall Street opened in the red on Wednesday, according to US futures.
US stock markets closed higher on Tuesday ahead of the Federal Reserve’s interest rate decision and jobs report later in the week. US indices ended October with a loss, just as they had in the previous two months.
Investors on Tuesday tried to continue Monday’s rally, perhaps putting a difficult October behind them. When it comes to higher interest rates, there seemed to be a light on the horizon.
“The US Treasury will need to raise less money this quarter, and therefore issue fewer bonds than previously expected,” said investment director Simon Wiersma of ING. “If this is coupled with a further slowdown in inflation, this could lead to interest rates falling again.” Other”. . Tax revenues were lower than expected, meaning that not only $852 billion, but $776 billion needed to be borrowed.
The yield on US ten-year bonds reached 4.858 percent on Tuesday.
In the afternoon, it appeared that the Chicago PMI fell slightly in October, and the US Consumer Confidence Index according to the Conference Board also fell. The low expectations index reading of 75.6 indicates a recession next year.
Labor costs rose slightly faster in the third quarter than analysts expected. Moreover, home prices in America’s largest cities continued to rise.
Oil prices fell due to easing concerns about escalation of the conflict in the Middle East.
The official PMI from China was not a boost. Chinese industry appeared to be contracting again, while growth in the services sector slowed.
Caterpillar lost nearly 7 percent. Although third-quarter earnings were above expectations, expectations for the fourth quarter were tepid. For the fourth quarter, Caterpillar expects sales to be “slightly higher.” The analyst consensus expected about 5 percent.
If this translates to other companies, it could be “a very negative story for cyclical stocks right now,” according to Steve Sosnick of Interactive Brokers.
JetBlue Airways lost more than 10 percent. The company warned of a larger loss in the fourth quarter than the market expected.
Advanced Micro Devices saw its stock price fall 4 percent after Tuesday’s close after posting strong earnings numbers and a flat outlook for the fourth quarter.
Quarterly numbers from Qualcomm, Doordash and PayPal will follow on Wednesday. The greatest expectations revolve around iPhone maker Apple, which will release a report on Thursday.
S&P 500 4,1933.80 (+0.65%)
Dow Jones 33,052.87 (+0.38%)
Nasdaq Composite 12,851.24 (+0.48%)
Asian stock markets rose on Wednesday. Figures from S&P Global showed that Chinese and Japanese industries contracted in October.
Nikkei 225 31,546.10 (+2.2%)
Shanghai Composite 3,023.14 (+0.1%)
Hang Seng 17,069.83 (-0.3%)
The euro/dollar was trading at 1.0568. When US stock exchanges closed on Tuesday, the currency pair was still trading at 1.0581 and when European stock exchanges closed the value was 1.0568.
USD/JPY 151.29 yen
EUR/USD EUR 1.0568
01:30 Manufacturing PMI – October final. (Yap)
03:45 Caixin Industry PMI – October (Chi)
08:00 Import prices – September (today)
10:30 Manufacturing PMI – October final. (United kingdom)
12:00 Mortgage Applications – Weekly (US)
13:15 ADP Jobs Report – October (US)
14:45 Industry PMI – October final. (United States of America)
15:00 ISM Manufacturing PMI – October (US)
3:00 PM, Construction Spending – September (US)
Jobs at 3:00pm – September (US)
3:30 PM Oil Inventories – Weekly (US)
7:00 PM Fed – Interest Rate Decision (US)
00:00 GlaxoSmithKline – Q3 figures (UK)
12:00 DuPont – Q3 numbers (US)
12:00 Kraft Heinz – Q3 numbers (US)
12:00 Yum Brands – Q3 numbers (US)
21:00 DoorDash – Q3 numbers (US)
21:00 PayPal – Q3 numbers (US)
21:00 Qualcomm – Q3 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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