(ABM FN-Dow Jones) The European stock markets are heading for a lower opening on Tuesday.
IG Markets anticipates an opening loss of 98 points for the German DAX and a minus of 19 points for the French CAC 40. The British FTSE 100 probably opens 31 points lower.
Stock markets in Europe ended lower on Monday.
Market analyst David Madden from CMC Markets saw little enthusiasm on the European stock exchanges. Investors remain concerned about the coronavirus developments and the necessary restrictions to contain the outbreak.
There was also a disruption on the stock exchanges that Euronext operates, which affected the stock markets in Paris, Lisbon, Amsterdam and Brussels.
On a macroeconomic level, it was quiet in Europe. That is why all attention was paid to growth figures from China. In the third quarter, the world’s second-largest economy grew by 4.9 percent, despite the impact of the coronavirus. Chinese retail sales also rose 3.3 percent year-on-year in September, after a plus of half a percent in August. Industrial production in China also increased faster in September.
China is on the way to a V-shaped recovery, CBC Bank economist Bernard Keppenne concluded. “[China] will undoubtedly be the only economy that has recovered so quickly to pre-crisis levels, “the economist said, although Keppenne warned that the Chinese recovery also appears to be slowing down when compared to quarterly figures. the rest of the world will be felt in China too, the economist predicted.
Italian Prime Minister Giuseppe Conte has given the go-ahead for steps to rid Monte dei Paschi di Siena bank of its bad loans before selling the nationalized bank. The Reuters news agency reported this on Sunday.
Bank shares like those of UniCredit and Mediobanca ended up divided on Monday. Elsewhere, financials were predominantly higher. Deutsche Bank rose 1.7 percent, Commerzbank gained 2.0 percent and Société Générale closed 1.6 percent in the plus.
Danone revealed plans for a major reorganization on Monday. The French dairy group wants to return to profitable growth of 3 to 5 percent as soon as possible. The company is looking at strategic alternatives to Argentina, the Vega brand and possibly other assets as well. Yakult was recently sold for almost half a billion euros. In the third quarter, Danone achieved a turnover of more than 5.8 billion euros. On a comparable basis, this meant a decline of 2.5 percent. This was reported as a decline of more than 9 percent. The stock won 0.3 percent.
TechnipFMC has been awarded a contract from Equinor to lay a pipeline to the Breidablikk oil field in the North Sea. This is a “significant” contract for TechnipFMC, meaning the value is between $ 75 million and $ 250 million. The share rose 0.4 percent in Paris.
In Amsterdam, the quarterly figures from Philips initially received a positive reception, but the share at the end fell 3.9 percent. In the past quarter, Philips achieved a turnover of 5.0 billion euros, against 4.7 billion euros a year earlier and an analyst forecast of more than 4.8 billion euros. The adjusted EBITA result was 769 million euros. Here, analysts had predicted 630 million euros in advance, against 583 million euros a year earlier. According to Morgan Stanley, Philips is taking a step in the right direction with the figures and ING was also pleased with the performance in the third quarter. ING did speak of a weak outlook.
Unibail-Rodamco-Westfield was up 2.9 percent. Bank of America thinks Unibail will forgo a $ 3.5 billion rights issue now that a group of disgruntled shareholders have come forward. The sale of the US portfolio could yield a similar debt reduction if it could be sold at a 20 percent discount off book value. This would mean less dilution of earnings per share, according to Bank of America, which raised the price target to $ 40, but left Unibail on its sell list.
Euro STOXX 50 3,235.16 (-0.3%)
STOXX Europe 600 366,45 (-0,3%)
DAX 12.854,66 (-0,4%)
CAC 40 4,929.27 (-0.1%)
FTSE 100 5,884.65 (-0.6%)
SMI 10,184.36 (-0.2%)
AEX 565,25 (-0,5%)
BEL 20 3,262.30 (-0.1%)
FTSE MIB 19.374,21 (-0,1%)
IBEX 35 6.860,20 (+0,2%)
US futures indicate a flat opening for Wall Street on Tuesday. Investors can comment on the results of IBM that appeared after the market on Monday. However, there were no surprises because the figures were identical to preliminary results that IBM already released at the beginning of this month.
Wall Street is closed lower on Monday. Although investors seem to have accepted that there will be no new stimulus deal ahead of the US election on Nov. 3, all news from Capitol Hill is being watched closely.
Democratic leader of the House of Representatives, Nancy Pelosi, came up with a 48-hour deadline on Sunday to close a deal. Otherwise the negotiations will probably be put on hold.
Morgan Stanley Wealth Management Chief Investment Officer Lisa Shalett pointed to several experts who estimate the odds of a January stimulus deal at less than 20 percent.
“The size of a stimulus package may depend on the outcome of the Senate races,” said Shalett.
The rapidly growing number of corona infections in the US is putting extra pressure on the talks and the need for new stimulus for the US economy, according to asset manager Chris Larkin of E * Trade Financial.
Furthermore, in terms of quarterly figures, Monday was fairly quiet, but it promises to be a lot busier later in the week. According to Larkin, the company’s results will provide a clearer picture of how the US economy is holding up during the pandemic.
On a macroeconomic front, it was announced on Monday that confidence among American homebuilders rose to a new record high of 85 in October.
Oil prices fell slightly on Monday despite OPEC + ‘pledge to do whatever it takes to rebalance the market. A barrel of West Texas Intermediate became 0.1 percent cheaper at $ 40.83 at settlement.
Saudi oil minister Abdulaziz bin Salman said during a virtual meeting of the OPEC + technical committee on Monday that OPEC and its allies are “flexible” enough to adapt to changes in the oil market.
He recognized that there are still countries that need to better adhere to production agreements and compensate for past overproduction. The OPEC + technical committee advises the group towards the semi-annual meeting on November 30 and December 1.
ConocoPhillips fell 3.2 percent after it was announced that it plans to acquire rival Concho Resources for $ 9.7 billion. There is a lot of talk about mergers in the energy sector. Concho was down 2.7 percent.
Boeing fell 0.1 percent. American Airlines will start flying again in December with the 737 MAX, if that is allowed by regulators. The Boeing plane has been on the ground for a long time after two accidents due to technical defects. Last week, the European aviation regulator already gave the green light.
Car manufacturers have a new challenge in their race to sell more electric cars: burning batteries are causing cars to be recalled. More than 77,000 General Motors Chevy Bolts are said to be affected by this problem. GM’s share fell 0.3 percent.
Halliburton went 0.7 percent lower on Monday, after the service provider to the oil industry reported a better-than-expected quarterly result with slightly disappointing sales.
Intel is close to selling its memory chips division to South Korean SK Hynix. The Wall Street Journal reported this Monday evening based on insiders. SK Hynix is reported to be paying about $ 10 billion, the business newspaper said. Intel closed 0.8 percent higher.
S&P 500 3.426,92 (-1,6%)
Dow Jones index 28.195,42 (-1,4%)
Nasdaq Composite 11.478,88 (-1,7%)
The Asian stock markets were lower on Tuesday.
Nikkei 225 23.546,72 (-0,5%)
Shanghai Composite 3.308,31 (-0,1%)
Hang Seng 24,507.18 (-0.1%)
The euro / dollar was trading at 1.1778 on Tuesday morning. At the close of the US stock exchanges on Monday, the currency was trading at 1.1771.
USD/JPY Yen 105,52
EUR/USD Euro 1,1778
EUR/JPY Yen 124,27
08:00 Producer prices – September (Dld)
10:00 Current account – August (eur)
14:30 Housing and Building Permits – September (US)
07:00 Remy Cointreau – Figures third quarter (Fra)
07:00 UBS – Figures third quarter (Zwi)
13:00 Lockheed Martin – Third quarter figures (US)
13:00 ManpowerGroup – Third quarter figures (US)
13:00 Philip Morris – Third quarter figures (US)
13:00 Procter & Gamble – Third quarter figures (US)
22:00 Netflix – Third quarter figures (US)
22:00 Snap Inc – Third Quarter Figures (US)
22:00 Texas Instruments – Third quarter figures (US)
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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