European stock markets open lower beursduivel.be

(ABM FN) European stock markets will open lower on Wednesday. IG expects an opening loss of 30 points for the German DAX, minus 23 points for the French CAC 40 and a decline of 27 points for the British FTSE 100.

European stock markets closed lower on Tuesday after gloomy PMIs for services sectors in Asia and Europe, although oil stocks rose alongside oil prices following production cuts by Saudi Arabia.

“Negative sentiment is flowing out of Asia, where disappointing Chinese PMIs have turned stock markets red,” said market analyst Erik Jan van Haren of Rabobank.

In the eurozone, the services sector contracted in August. The Purchasing Managers’ Index fell to 47.3. “The eurozone did not go into recession in the first half of the year, but the second half promises to be more difficult,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

Eurozone producer prices for July fell less than expected on a monthly basis, by 0.5 percent. Economists expected a decline of 0.6 percent. Without energy prices, the decline amounted to 0.4 percent on a monthly basis.

Oil prices rose sharply towards levels of about $90 after it became known that Saudi Arabia would continue to voluntarily reduce its production at least until the end of this year.

According to analyst Naeem Aslam of Zaye Capital Markets, OPEC+ does not have a message for central banks, which are doing everything in their power to limit inflation. Saudi Arabia wants to keep prices high, according to Aslam, because it is making huge investments in infrastructure projects.

Company news

BP, Eni, Repsol, Shell, Total Energy and other oil-related stocks closed higher after the price of Brent crude rose above $90 a barrel for the first time since November last year.

The automobile industry was in demand with positives from tire manufacturers Continental and Michelin and car manufacturers Renault and BMW.

In London, retailers and department stores such as B&M European Retail, Tesco and Ocado were relatively the biggest losers. JP Morgan warned that lower food prices would put pressure on profit margins.

In Amsterdam, Ahold Delhaize came under significant pressure after a drop in advice at JPMorgan, which favors rival Colruyt. Ahold shares lost 6 percent, while Colruyt shares rose 6 percent in Brussels.

Shares of Siemens Energy and retailer Zalando were among the heavy losers in Frankfurt.

Air France-KLM and Airbus enter into exclusive negotiations to establish a joint venture to support spare parts for Airbus A350 aircraft. The Air France-KLM share price closed 1.0 percent lower, and the Airbus share price closed 0.1 percent lower.

Euro Stoxx 50 4,269.16 (-0.25%)
STOXX Europe 600 456.90 (+0.23%)
DAX 15,771.71 (-0.34%)
CAC 40 7,254.72 (-0.34%)
FTSE 100 7,437.93 (-0.20%)
SMI 10,958.90 (-0.86%)
EEX 747.11 (-0.04%)
Bill 20 3,654.20 (+0.00%)
FTSE MIB 28,652.18 (+0.02%)
IBEX 35 9,392.00 (-0.26%)

US stocks
Wall Street opened flat on Wednesday, according to US futures.

US stock markets closed slightly lower on Tuesday, dragged down by higher oil prices following production cuts and weak economic data.

After a positive close on Friday and no trading on Labor Day Monday, investors returned to a risk-off mood on Tuesday.

Investors were cautious on Tuesday after weak purchasing data from China emerged. “Sentiment towards China has become darker again,” Hargreaves-Lansdown said, pointing to new signs of a slowdown in the Chinese economy.

In addition, it was reported that Saudi Arabia will extend its production cut by 1 million barrels per day for another three months, and Russia continues to limit oil production. Brent crude rose above $90 on that news. West Texas Intermediate crude closed 1.3 percent higher at $86.69 a barrel.

“It’s all about oil and interest rates today,” said Kent Engelke of Capitol Securities. Investors are wondering how high energy costs will affect inflation and the Federal Reserve’s efforts to reduce it.

The rise in bond yields pushed stock prices, especially shares of homebuilders, utilities and big banks, into the red.

The production cut has reinforced investors’ concerns about the Chinese economy, which is in recession and could pose problems for global economic growth.

Oil prices have risen more than 20 percent in the past three months, putting pressure on American consumers as gasoline and grocery prices rise.

It was also found that US factory orders fell by 2% in July. This was the first decline after four months of increases.

Company news

Tesla shares closed 5 percent higher after reports of rising sales in China.

Blackstone shares rose 4 percent and Airbnb closed 7 percent higher, after announcing their inclusion in the S&P 500. Newell Brands lost its place in the leading index and fell 4 percent.

Specialty chemicals company Albemarle has increased its bid for Liontown Resources to $4.25 billion in a latest bid to take on its Australian rival. The stock closed slightly higher.

Semiconductor maker KLA increased its dividend by 11.5 percent to $1.45, and also increased its stock buyback program by $2 billion. The stock rose 1 percent.

ARM Holdings’ IPO could give the British chip company a valuation of about $52 billion. This could make it the largest IPO of the year. The British chip designer wants to sell 95.5 million shares at $47.00 and $51.00. The stock market is expected to make its Nasdaq debut next week, according to the Wall Street Journal.

S&P 500 4,496.83 (-0.42%)
Dow Jones 34,641.97 (-0.56%)
Nasdaq Composite 14,020.95 (-0.08%)

Asia
Asian stock markets were mainly lower on Wednesday.

Nikkei 225 33,239.34 (+0.6%)
Shanghai Composite 3,143.62 (-0.3%)
Hang Seng 18,306.24 (-0.8%)

Currencies
The euro/dollar was trading at 1.0734. When US stock exchanges closed on Tuesday, the currency pair was still trading at 1.0720 and when European stock exchanges closed there was still a position at 1.0728 on the boards.

USD/JPY 147.42 yen
EUR/USD EUR 1.0734
EUR/JPY 158.23

Overall agenda:
08:00 Factory Orders – July (Germany)
1:00 PM Mortgage Applications – Weekly (US)
2:30 PM Trade Balance – July (US)
15:45 PMI Services – August Final. (United States of America)
4:00 PM ISM Services PMI – August (US)
8:00 PM Federal Reserve – Beige Book (US)
Company News:
10:00 PM on GameStop – Q2 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.