July 21, 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 towards a red open on Wednesday. Since Wall Street is closed today, it is expected to be a day with relatively low trading volumes.

IG expects an opening loss of 5 points for the German DAX, a flat start for the French CAC 40 and a decline of 10 points for the British FTSE 100.

European stock markets closed higher on Tuesday, following positive results in the US on Monday evening and Tuesday morning in Asia.
On Tuesday, the focus seemed to be mainly on the Fed managers’ various speeches, following last week’s interest rate decision, to learn more details about the chances of one or more rate cuts. Several Fed officials are scheduled to speak publicly later Tuesday.

The French parliamentary elections held on June 30 and July 7 played a role in the background. Barclays said that opinion polls indicate that the parliamentary coalition led by Emmanuel Macron is in a difficult position between the leftist coalition and the National Rally party led by Marine Le Pen.

The most likely outcome of the elections is a “hung parliament,” leading to either a deadlock in governance or a “coexistence” between Macron and far-right parliamentarians, according to the bank. “The latter would be more negative for the markets and, certainly in the long term, also for the EU institutions and the prospect of further financial and political integration of the EU member states.”

The British market was particularly looking forward to Wednesday when inflation figures for May are released in the run-up to the Bank of England’s interest rate decision on Thursday.

US corporate inventories rose in April, it appeared Tuesday afternoon, which surprised no one. Furthermore, US retail sales growth slowed in May and the April figure was revised downward, “further evidence” of a slowdown in consumer spending, ING said. This restarts the discussion about a rate cut by the Fed in September, according to the bank.

The price of oil rose. The price of West Texas Intermediate crude futures in August was 0.7% higher at $8.30. Brent price reached $84.90, also up 0.7 percent.

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The EUR/USD was trading at 1.0739, roughly the same level on Monday evening.

Company news

Carrefour shares lost 4.3 percent. A French newspaper reported that the French government imposed a fine of 200 million euros on the company due to its franchising policy.

Volvo appears to be coping well with headwinds in the truck market, that’s the impression of Deutsche Bank, which expects this to be reflected in its second-quarter results. Volvo was one of the first to adapt production capacity to recent market conditions. Volvo closed up 0.3 percent.

At Stellantis, there are still concerns about large inventories at US dealers, according to analysts.

Shell, through its subsidiary Shell Eastern Trading Pte, has reached an agreement to acquire Pavilion Energy Pte. Through this acquisition, Shell will acquire 6.5 million tons of LNG per year under the contract, contributing to Shell’s goal of growing its LNG activities by 20 to 30 percent by 2030. The acquisition amount was not announced today. Tuesday. Shell’s share price rose 0.3 percent.

Euro Stoxx 50 4,915.25 (+0.71%)
STOXX Europe 600 515.01 (+0.69%)
DAX 18,123.58 (+0.31%)
CAC 40 7,628.80 (+0.76%)
FTSE 100 8,191.29 (+0.60%)
SMI 12,039.64 (+0.30%)
EEX 928.19 (+0.55%)
Bill 20 3,859.60 (+0.61%)
FTSE MIB 33,315.68 (+1.24%)
IBEX 35 11,067.70 (+0.99%)

US stocks

Wall Street remains closed today on Juneteenth.

US stock markets stayed close to home on Tuesday, in the wake of recent record numbers and weak US retail sales data in May.

Meanwhile, Nvidia shares continued to rise to new records and once again became the largest listed company in the world.

Since stock markets will remain closed on Wednesday to commemorate the abolition of slavery, called Juneteenth, it could still be a quiet trading week. Juneteenth was a national holiday just a few years ago.

Meanwhile, the S&P 500 and Nasdaq hit new records by small margins, just as they did on Monday. According to Simon Wiersma of ING, investors are optimistic about the earnings outlook for US companies. The uncertainty in Europe due to the political situation in France is barely noticeable on Wall Street, according to the investment manager.

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“A well-functioning economy, slowing inflation, higher expectations for corporate earnings growth and the possibility of the central bank cutting interest rates provide excellent conditions for equity investors,” says Wiersma.

There are still large sums of money on the sidelines, and if they are used, according to a Bank of America survey, US stocks in particular will benefit.

Citigroup has also now raised its price target for the S&P 500 index from 5,100 to 5,600 points by the end of the year. But the bank’s strategists warned that risks were increasing and a 5 to 10 percent correction in the second half of the year could not be ruled out. Citi said this would provide traders with “opportunistic” opportunities.

On Tuesday, investors began working on US retail sales and industrial production data for May.

Retail sales rose 0.1 percent on a monthly basis. The estimate was 0.2 percent. On closer inspection, the previously reported flat trading volume in April turned out to be a 0.2 percent decline.

This number indicates a slowing economy and this is favorable for a faster interest rate cut by the Federal Reserve and thus may be good for stock prices.

Industrial production rose faster than expected in May, by 0.9 percent. Economists expected 0.4 percent.

Company news

Nvidia stock rose 3.5 percent after Rosenblatt raised his price target from $140 to $200. The share rose to new highs weeks ago and is now at $135, after the previous high of $95, which was only a few months old, was broken less than a month ago.

Nvidia’s market cap now stands at $3.34 trillion, compared to $3.32 trillion for Microsoft, which fell 0.2 percent.

Broadcom shares fell 1.4 percent. The stock rose for the seventh straight day of trading Monday and now has the seventh-largest market cap among U.S. companies.

Home builder Lennar has opened the books and fellow sector member KB Home will present the numbers after closing. Moreover, the US earnings season is coming to an end. Lennar had better-than-expected earnings and turnover last quarter, but expectations were disappointing. The stock fell 5 percent.

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GameStop closed down 2 percent. On Monday, the retailer lost 12 percent after the annual meeting, where the retailer reiterated its intention to save costs.

Occidental Petroleum shares rose 1.7 percent after Warren Buffett’s Berkshire Hathaway announced the purchase of nearly three million shares.

Tesla shares gained 1.4 percent, after the stock gained more than 5 percent on Monday. Sector company Fisker filed for bankruptcy and lost more than half its stock market value on Tuesday.

Education technology company Chegg will reorganize. The stock had risen 11 percent earlier in the day, and eventually closed up 3.8 percent.

S&P 500 5,487.03 (+0.25%)
Dow Jones 38,834.86 (+0.15%)
Nasdaq Composite 17,860.43 (+-0.02%)

Asia

Asian stock markets were mixed on Wednesday, but generally higher.

Nikkei 225 38,481.77 (+0.0%)
Shanghai Composite 3,020.03 (-0.3%)
Hang Seng 18,264.51 (+2.0%)

Currencies

The euro/dollar was trading at 1.0734. When US stock exchanges closed on Tuesday, the currency pair was still trading at 1.0740 and when European stock exchanges closed, it was still at 1.0739.

USD/JPY 157.85 yen
EUR/USD EUR 1.0734
EUR/JPY 169.44

Overall agenda:
08:00 Consumer and Producer Prices – May (UK)
At 3:30 PM Wall Street closes on Juneteenth
4:00 PM Home Builder Confidence – June (US)

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, 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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