July 22, 2024

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European stock markets open lower  beursduivel.be

European stock markets open lower beursduivel.be

(APMF IN-DOW JONES) European stock markets are heading for a modest open in the red on Tuesday, awaiting US producer prices, followed by inflation numbers tomorrow.

IG expects an opening loss of 13 points for the German DAX and minus 1 point for the French CAC 40. The UK’s FTSE looks set to open 16 points lower.

European markets got off to a cautious start on Monday and there will be a lot of interest this week in the US inflation numbers that will be announced on Tuesday and Wednesday.

US producer prices are on the agenda today, and the important April consumer price report will be published in the US on Wednesday, as investors hope to halt the recent surge in inflation. This, coupled with a deteriorating labor market, could give the Fed the opportunity to implement planned interest rate cuts this year.

“Much depends on the US inflation report, as a lower reading increases the likelihood of a Fed rate cut in July, while higher inflation could lead to a rate cut after September,” the IG said.

Furthermore, a number of corporate figures are on the agenda this week, such as ABN AMRO, Bayer, KBC Group, Allianz, Commerzbank, RWE, Thyssenkrupp, Deutsche Telekom, Siemens and Engie in Europe.

In the United States, books remain open by Home Depot, Cisco, Deere, Walmart, and Applied Materials, among others.

The risers and the fallers

Anglo American has rejected an enhanced takeover offer from BHP Group. BHP reported this on Monday afternoon. The new offer, submitted on May 7, valued Anglo American at more than $42 billion. Anglo American on Monday rejected the offer, according to BHP, which said it was disappointed. Analysts at Berenberg do not rule out BHP making another improved offer. But Glencore may also join the takeover battle, according to the German bank. According to Bernberg, to excite Anglo American’s board, an offer of at least £29.00 per share would be needed. The latest offer made by BHP was 27.53 pounds sterling, according to analysts’ calculations. Anglo American shares closed down 2.2 percent at 27.14 pounds on Monday, while BHP shares fell 0.5 percent.

Automakers have done relatively well. In Frankfurt, Porsche AG shares rose 3.0 percent and Volkswagen shares rose 1.5 percent. BMW also managed to add 1.3 percent. In Paris, Stellantis rose 3.7 percent and Renault rose 2.2 percent.

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Frank Franken of Edmond de Rothschild is waiting for Washington to announce new import duties on China. It seems that the import of Chinese electric cars in particular is being treated harshly by the Americans. “In short, investors don’t have to wait for Trump to start a trade war between the two largest economies.”

Sanofi shares rose 2.4 percent in Paris, and Safran shares fell 1.4 percent.

In Frankfurt, the K+S index rose by 1.2%. The German fertilizer company performed better than expected in the first quarter of 2024, it emerged on Monday. K+S reiterated its 2024 forecast, but said it was unlikely to end up at the lower end of those forecasts.

Salzgitter shares lost 2.0 percent after the German steel company announced a decline in its sales volume and profits in the first three months of 2024, due to lower steel prices.

The biggest loser on the German Stock Exchange was Deutsche Boerse. The stock had to give up 2.4 percent.

In Amsterdam, Prosus led with gains of 2.0 per cent, followed by AkzoNobel with gains of around 2 per cent, thanks in part to a buy recommendation from UBS. Technology had a tougher time in Amsterdam on Monday. ASML fell 1.3 percent, PC lost 1.4 percent, and ASMI fell 0.2 percent.

In Brussels, Solvay shares rose 2.0 percent, followed by Sofina shares, with gains of 1.1 percent. Cofinimo shares lost 9.1 percent, but also posted earlier profits. After adjusting this ratio, the share actually increased.

Euro Stoxx 50 5,078.96 (-0.1%)
STOXX Europe 600 520.86 (+0.0%)
DAX 18,742.22 (-0.2%)
CAC 40 8,209.28 (-0.1%)
FTSE 100 8,414.99 (-0.2%)
SMI 11,768.08 (+0.1%)
IEX 911.91 (+0.1%)
Bill 20 3,980.58 (-0.8%)
FTSE MIB 34,815.91 (+0.5%)
IBEX 35 11,152.00 (+0.4%)

US stocks

Wall Street is heading for an open in the red on Tuesday, but as in Europe, losses will be small.

US stock markets ended mixed on Monday ahead of important inflation figures due this week.

Indices lost some ground during the trading session after a survey by the Federal Reserve Bank of New York showed that inflation expectations had risen. All the numbers are well ahead of the Fed’s 2 percent target and reflect the stubborn nature of inflation this year.

Survey respondents were particularly concerned about housing costs, medical care, food prices, gasoline prices and education costs.

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There will be a lot of attention this week on national inflation numbers, with producer prices on Tuesday and consumer prices on Wednesday. Retail sales from the US are also scheduled to be released on Wednesday.

If US inflation turns out to be higher than expected for the fourth month in a row, market expectations for the number of interest rate cuts this year will fall again, Stifel analysts predict. Experts warn that persistent inflation in the United States could lead to a sharp decline in stocks in the coming months.

Stifel expects the Standard & Poor’s 500 index to fall to about 4,750 points in the second or third quarter of this year. This means a correction of about 10 percent, or about 500 points.

Frank Franken also pointed to the expected announcement this week from US President Joe Biden that Washington will impose 100 percent import duties on Chinese electric vehicles.

Bank expert Edmond de Rothschild said: “Biden will announce these import duties this week on electric cars, batteries, and perhaps solar cells coming from China, as the United States sees China disposing of its excess capacity on the global market,” wondering about the consequences. .

Oil prices closed higher on Monday, supported by signs of improving demand from China, a major importer, and the possibility of supply disruptions in Canada. At a settlement of $79.12, a barrel of WTI became 1.1 percent more expensive on a daily basis.

The euro/dollar rose to 1.0790, while the yield on US ten-year bonds fell by two basis points to 4.49 percent.

The risers and the fallers

Shares of Chinese electric car manufacturers such as Nio and XPeng rose sharply by 6.7 and 4.7 percent. Lee Auto shares gained 1.2 percent and BYD gained 0.7 percent.

Tesla shares rose 2.0 percent. Tesla has launched a below-market financing rate for the new electric Model Y. The company is offering a 0.99 percent annual interest rate on qualifying new Model Y purchases. According to market experts, lower financing rates could boost sales volume.

US shares of ARM rose 7.7 percent after a report from Nikkei Asia that the British chip designer plans to launch his first artificial intelligence chips next year.

Industry rival Intel has plans to build a chip factory in Ireland, the Wall Street Journal reported Monday. That would include a deal with Apollo Global Management, which would invest $11 billion to help build the plant, the business newspaper wrote. Intel shares rose more than 2 percent.

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GameStop shares rose nearly 75 percent after Keith Gill, an investor who posted messages under the name Roaring Kitty on social media like Reddit and GameStop.

S&P 500 5,221.42 (-0.0%)
Dow Jones 39,431.51 (-0.2%)
Nasdaq Composite 16,388.24 (+0.3%)

Asia

Asian stock markets recorded mixed results, but without major results.

Nikkei 225 38,268.75 (+0.2%)
Shanghai Composite 3,144.15 (-0.1%)
Hang Seng 19,089.83 (-0.1%)

Currencies

The EUR/USD was trading at 1.0784 this morning. On Monday evening, the pair was trading at 1.0790.

USD/JPY 156.39 yen
EUR/USD EUR 1.0784
EUR/JPY 168.65

Overall agenda:
08:00 Inflation – April Final (GLD)
08:00 Unemployment – ​​March (UK)
11:00 ZEW Economic Sentiment Index – May (DLD)|
12:00 SME Confidence – April (US)
2:00 PM OPEC monthly report (Oos)
2:30 PM Producer Prices – April (US)

Company News:

07:00 P&S Group – First quarter numbers
07:00 OCI – First quarter numbers
6:00 PM Euronext – Q1 figures
00:00 Agfa-Gefert – First quarter numbers
00:00 DEME – First quarter numbers
00:00 Nixwah – Q1 numbers
00:00 inclusive – First quarter numbers
07:00 Bayer – Q1 numbers (DLD)
1:00 PM Home Depot – Q1 Numbers (US)
00:00 Alibaba – Quarterly Figures (QI)

00:00 Ibusco – Annual Meeting
00:00 IMCD – Annual Meeting
00:00 Signify – Annual Meeting
00:00 Agfa Geffert – Annual Meeting
00:00 Lotus Bakeries – Annual Meeting
00:00 Tessenderlo – Annual Meeting
00:00 Melexis – Annual Meeting
00:00 Fluxis – Annual Meeting
00:00 Aedifica – Annual Meeting

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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