(ABM FN-Dow Jones) The European stock markets are heading for a green opening on Monday.
IG anticipates an opening win of 16 points for the German DAX and a plus of 6 points for the French CAC 40. The British FTSE 100 probably opens 14 points lower.
The stock markets in Europe ended convincingly in the green on Friday.
“Stocks recovered although the outlook is still bleak,” said CMC Markets market analyst David Madden.
“The fear has disappeared for a while, but that doesn’t mean that investors are suddenly very optimistic,” said Madden.
According to the market expert, investors seem to accept that new lockdown measures are necessary due to the flaring coronavirus and hopes that there will be a new stimulus deal in the United States before the American elections are as good as gone.
Sentiment was given an extra boost on Friday by the news that Pfizer and BioNTech may be able to submit an application for approval to the US FDA for their Covid vaccine by the end of November.
Final inflation data for September and the trade balance for August were released from the eurozone on Friday. Consumer prices fell by 0.3 percent on an annual basis. Exports from the currency union fell by 12.2 percent on an annual basis in August, imports by 13.5 percent. This increased the trade surplus slightly.
Johnson warns against no-deal Brexit
British Prime Minister Boris Johnson said Friday that the European Union lacks the will to reach a trade deal and warned the British that they must prepare for a no-deal Brexit. Brussels called on Downing Street to keep talking. A deadline set by the UK itself to reach an agreement came to an end on Thursday. Formally, there is still until December 31st.
The British pound rose slightly against the euro and dollar. According to Madden, the currency did not move very much on Johnson’s words “because there is still time to make a deal.”
Company news
Rio Tinto produced more iron ore in the third quarter, but shipped less. The group did reiterate the production targets for the whole year, as well as the planned investments. The stock closed 0.2 percent lower.
Daimler performed better than expected in the third quarter thanks to a stronger than expected recovery in September. The share of the German car manufacturer recorded a price gain of 5.5 percent.
French carmaker Renault also saw signs of recovery in September. Worldwide sales rose by 0.9 percent to 296,901 copies, but in the Benelux sales fell by 12.9 percent to 7,378 copies. The stock closed 5.2 percent higher.
Galapagos was under pressure after the failure of a study of treatment for knee osteoarthritis. A series of target price cuts followed. Galapagos became 7.1 percent cheaper.
Liberty Steel, part of GFG Alliance, has made a non-binding indicative offer for Thyssenkrupp Steel Europe. The details of this offer were not disclosed. Thyssenkrupp rose 10.8 percent.
LVMH rose 7.3 percent after strong third quarter data. The fashion branch in particular performed strongly.
HelloFresh has increased the outlook for 2020 on Friday. And also in the third quarter, according to the meal box deliverer, results will be significantly higher than the market expects, both in terms of turnover and adjusted EBITDA. The share rose 6.9 percent. Competitor Just Eat Takeway rose 3.4 percent following a buy recommendation from HSBC.
Euro STOXX 50 3,245.47 (+ 1.7%)
STOXX Europe 600 367,48 (+1,3%)
DAX 12.908,99 (+1,6%)
CAC 40 4,935.86 (+ 2.0%)
FTSE 100 5,919.58 (+ 1.5%)
SMI 10,207.13 (+ 1.4%)
AEX 568,18 (+1,4%)
BEL 20 3,264.60 (+ 0.7%)
FTSE MIB 19.389,68 (+1,7%)
IBEX 35 6.849,70 (+0,5%)
AMERICAN SHARES
US futures point to a higher opening for Wall Street on Monday.
Wall Street closed on Friday after the US stock markets lost steam towards the closing bell.
Investors initially responded positively to news that Pfizer may be filing with the FDA as early as late November to approve its corona vaccine. Earlier this week, Johnson & Johnson just halted a research study with his vaccine.
According to market analyst Naeem Aslam of AvaTrade, it is a miracle if a vaccine becomes available sometime in the first quarter, given the time it normally takes to develop one.
Furthermore, US retail sales were a nice boost in September. US retail sales rose 1.9 percent on a monthly basis last month, while the market expected a much less significant increase.
“These are very strong figures,” said Rabobank analyst Jane Foley. But Foley also warned that economic growth will slow due to a lack of new stimulus measures in the US.
Investors are still waiting for a new American support package. There are still slightly positive voices from Capitol Hill that a deal can be struck, but the markets are losing hope that this will be possible before the election.
On a macroeconomic front, it was also announced on Friday that industrial production in the US unexpectedly decreased by 0.6 percent in September, while consumer confidence increased further in October, according to the University of Michigan.
The oil price fell further on Friday. A barrel of West Texas Intermediate became 0.2 percent cheaper at $ 40.88 at settlement.
On a weekly basis, the crude oil price rose by one percent. With this, the oil price surprisingly managed to hold up despite the deteriorating market climate, according to analyst Paola Rodriguez-Masiu of Rystad Energy.
According to the market expert, it is now up to OPEC and its allies to either enforce stricter compliance with the production agreements or to renew them.
Company news
Schlumberger fell 8.9 percent after the oil services provider reported better-than-expected adjusted earnings for the past quarter, but also slightly disappointing sales.
Boeing rose 1.9 percent after a European regulator said the 737 MAX aircraft is safe enough to fly again.
Pfizer won 3.9 percent. Provided the study results are good in the coming weeks, Pfizer wants to submit an application to the American regulator FDA for its corona vaccine before the end of November. CEO Albert Bourla of the pharmaceutical company wrote this in an open letter on Friday.
Gilead Sciences lost 1.5 percent. The World Health Organization announced on Friday that a study has shown that various corona treatments have no significant impact on the survival rate of Covid patients. Gileads remdesivir was also mentioned. Gilead expressed doubts about the validity of the WHO study.
Twitter fell 0.5 percent. The social media platform experienced a huge, as yet inexplicable, outage on Thursday.
Blackstone is considering selling or listing BioMed Realty Trust, the second-largest owner of life science real estate. Blackstone acquired the company in 2016 and currently values the company at $ 14.6 billion. The Blackstone share rose 0.7 percent.
Hewlett Packard Enterprise was down 4.0 percent, despite the cloud storage and software company speaking of improved financial outlook for the new fiscal year.
Shares of Navistar rose nearly 23 percent to $ 43.53 on Wall Street on Friday. Volkswagen subsidiary Traton has reached an agreement in principle to take over Navistar completely. Traton already owns a 16.8 percent stake in Navistar and pays $ 44.50 per share for the rest of the company.
S&P 500 3.483,61 (+0,01%)
Dow Jones index 28.606,31 (+0,4%)
Nasdaq Composite 11.671,56 (-0,4%)
ASIA
The Asian stock markets were divided on Monday. The Chinese economy grew by almost 5 percent in the past quarter, which was slightly less than economists had foreseen.
Nikkei 225 23.690,11 (+1,2%)
Shanghai Composite 3.325,29 (-0,3%)
Hang Seng 24,554.82 (+ 0.7%)
EVALUATE
The euro / dollar was trading at 1.1704 Monday morning. At the close of the US stock exchanges on Friday, the currency was trading at 1.1715.
USD/JPY Yen 105,42
EUR/USD Euro 1,1704
EUR/JPY Yen 123,38
MACRO-AGENDA:
00:50 Trade balance – September (Jap)
4:00 AM Economic Growth – Third Quarter (Chi)
4:00 AM Industrial Production – September (Chi)
4:00 am Retail sales – September (Chi)
16:00 Confidence homebuilders NAHB – October (US)
COMPANY NEWS:
07:00 Philips – Figures third quarter (NL)
13:00 Halliburton – Third quarter figures (US)
22:00 IBM – Third quarter figures (US)
22:00 PPG Industries – Third Quarter Figures (US)
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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