May 27, 2022

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Europese beurzen openen opnieuw flink lager

European stocks open significantly lower again

Bild: Deutsche Börse AG

(ABM FN-Dow Jones) European shares will open lower on Thursday. IG Markets forecast an opening loss of 163 points for the German DAX, minus 86 points for the French CAC 40 and a drop of 75 points for the British FTSE 100.

European shares closed higher on Wednesday after rapid moves in the past three trading days, as monetary policy and Corona both struggled to get the most attention.

“European stocks turned well on Wednesday and started December more favorably than they did in November,” said market analyst Michael Hewson of CMC Markets. Hewson spoke of a “zigzag” movement in the stock markets in recent trading days, mainly due to developments around the coronavirus omikron variant.

Hewson said the DAX in particular had a strong day, despite concerns about the way the German health system is dealing with the delta variant of the coronavirus. Britain’s FTSE 100 is down slightly today, according to the analyst.

“We can see some stability after the strong moves in recent days,” Hewson said, ruling out setbacks around Omicron.

According to Hewson, there are several reasons why the stock market is currently more positive, including statements by BioNTech CEO Ugur Sahin that current vaccines offer reasonable protection against the latest variant, although they are less effective. “As a virologist, he strikes a fine balance to the nagging tone of Moderna CEO Stephane Bancel, who caused a sell-off on Tuesday.”

Hewson also referred to comments made by a senior WHO executive who stated that the new vaccines may not be necessary and that the side effects of the new variant have been mild so far. This also boosts sentiment, the analyst said.

PMIs for industries in Europe, without exception, showed growth in November. The monetary union manufacturing PMI rose from 58.3 to 58.4 in November. The initial index was 58.6.

“The strong number masks how difficult market conditions are for manufacturers at the moment,” Chris Williamson, Markit economist, said in a statement. The economist said that demand is good, but supply chain problems are growing rapidly. Williamson warns that Corona remains a thundercloud over the market.

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In the US, Markit figures indicated a slight slowdown in growth, but the ISM index showed an acceleration.

There was also a better-than-expected jobs report from the ADP from the US. The official report will follow on Friday.

company news

Sanofi on Wednesday reiterated its medium-term forecast and remains confident in its vaccine candidates. The company also acquired Origimm Biotech for an undisclosed amount. The stock closed up 2.4 percent.

Unlike on Tuesday, major stock prices turned green. Stellantis was striking in Paris with an increase of 5.7 per cent. Eurofins’ share suffered a 5.8 percent loss.

In Frankfurt, Hellofresh stock saw a price drop of 3.5 percent, and Sartorius stock fell 3.8 percent.

Euro Stoxx 50 4177.83 (+2.8%)
Stokes Europe 600470.86 (+1.7%)
DAX 15.472.67 (+2.5%)
CAC 40 6,881.87 (+2.4%)
FTSE 100 7,168.68 (+1.6%)
SMI 12266.46 (+0.9%)
AEX 790.70 (+1.7%)
BEL 20 4,154.97 (+1.0%)
FTSE MIB Index 26,371,92 (+2,2%)
IBEX 35 8,452.60 (+1.8%)

US property rights

Wall Street opened higher on Thursday, according to US futures.

US stock markets failed to hold on to the gains made earlier in the day on Wednesday and fell sharply towards the end of the trading day.

During the day, confirmation came of the discovery of the first infection of the omikron variant of the coronavirus in the United States in a person returning from a trip to South Africa on November 22. As a result, prices on Wall Street fell sharply. The price of oil has also fallen.

Earlier today, US stocks rose. “Investors then shrugged off the sudden change in attitude from Fed Chairman Jerome Powell,” said market analyst Michael Hewson of CMC Markets. On Tuesday, Powell said it may be necessary to taper off faster.

The jobs data also initially gave investors a positive outlook. Last week, 534,000 jobs were added in the United States, according to numbers from ADP Payment Receipt Processor. Rabobank spoke of a strong and broadly supported jobs report. “November continues the trend from October with growth contributing from all sectors,” said market analyst Philip Marie.

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“The US economy is bouncing forward,” Hewson said. The official report will follow on Friday.

Numbers season is in its final stages. On Tuesday evening after trading closed, Hewlett Packard and GlobalFoundries came up with numbers, and Constellation Brands’ turn was this afternoon.

“We expect the market to gradually shift its focus away from Omicron toward positive growth and earnings numbers, allowing stocks to resume their upward trend,” said Mark Heffel, CIO at UBS. According to him, this is mainly positive for Japanese, European, energy and financial stocks.

“We could see some stability after the strong moves in recent days,” Hewson predicts, ruling out setbacks around Omicron.

Not everyone shares this expectation. Alliance independent advisor CIO Chris Zaccarelli expects high volatility in the short term. “Below the line, there is more uncertainty about the markets than there was a few weeks ago,” Zacharelli said. “That’s reason enough for investors to pull the trigger now and ask questions later.”

The January futures for West Texas Intermediate crude closed 0.9 percent lower on the New York Mercantile Exchange at $65.57 on Wednesday. This is the lowest level in more than three months.

EUR/USD is trading at 1.1311. At the beginning of the trading day, the currency pair moved at 1.1321 and when the US stock exchanges closed on Tuesday, the plates were at 1.1311.

company news

ExxonMobil aims to double its earnings and cash flow by 2027 compared to 2019. In addition, it will invest $20-25 billion annually, including green projects. Arrow down fractions.

Hewlett Packard saw profits rise thanks to legal victory over Oracle. Turnover slightly increased. Forecasts for the whole of 2021 were repeated. The stock closed up 3.4 percent.

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GlobalFoundries surprised positively, with revenue growth and black numbers. The stock closed in the red to 4.3 percent.

BioNTech lost 4.9 percent, though CEO Ugur Sahin told Reuters that the jointly developed vaccine might protect well against the Omicron variant.

Salesfoce.com shares closed down 11.8 percent on Wednesday, after issuing a disappointing forecast.

General Motors Chief Financial Officer Paul Jacobson announced at the Credit Suisse conference that General Motors revised up its full-year profit forecast on Wednesday. The automaker is now targeting pre-tax earnings of about $14 billion for the full year, previously targeting the upper end of the $11.5 billion to $13.5 billion range. General Motors rose 0.4 percent.

S&P 500 Index 4.513.04 (-1.2%)
Dow Jones 34.022.04 (-1.3%)
Nasdaq Composite 15,254.05 (-1.8%)

Asia
Asian stocks were mixed on Thursday.

Nikkei 225 27,859.09 (-0.3%)
Shanghai Composite 3.578.63 (+0.1%)
Hang Seng 23729.63 (+0.3%)

Evaluation
The EUR/USD was traded at the 1.1320 level. When the US markets closed on Wednesday, the currency pair was still moving at 1.1314 and when the European markets were closed there was still a position at 1.1324 on the plates.

113.05 US dollar / Japanese yen
EUR / USD EUR 1,1320
128,00 EUR / JPY

Macro schedule:

07:00 Consumer Confidence – November (Japan)
11:00 Unemployment Rate – October (EUR)
11:00 Producer Prices – October (Euro)
14:30 Support Requests – Weekly (US)
00:00 OPEC + . meeting

Company news:

13:00 Kroger – US Third Quarter Numbers

Pron: ABM Financial News


From Beursplein 5, Editors ABM Financial News Keep a close eye on developments on the stock exchanges, and the Amsterdam Stock Exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.