(ABM FN-Dow Jones) The European stock markets are heading for a higher opening on Thursday, after a deep red Wednesday and despite new corona measures in Germany and France.
IG anticipates an opening win of 67 points for the German DAX, a plus of 31 points for the French CAC 40 and an increase of 13 points for the British FTSE 100.
The European stock markets closed lower on Wednesday for the third day in a row, fearing new lockdowns in France and Germany.
Fears of lockdowns in Germany and France gripped European stock markets on Wednesday. Infections in Europe continue to rise, while the World Health Organization said earlier this week that governments are “far behind” in their fight against the coronavirus.
German Chancellor Angela Merkel called for a partial lockdown, with bars and restaurants closing and public events banned. She warned that the pressure on hospitals could become too great after more than 13,000 new corona infections were registered on Tuesday.
French Prime Minister Emmanuel Macron is likely to announce new coronavirus measures in a televised address tonight, as the number of cases in France increased by more than 250,000 last week.
In Italy, anti-lockdown demonstrations are spreading, with protesters taking to the streets and looting luxury fashion boutiques.
According to market followers, European stock markets could take a heavy hit this week if the continent’s two largest economies do indeed come to a standstill due to measures. Freedom of movement is also being further restricted in Spain and the United Kingdom.
On a macroeconomic level, it appeared that French consumer confidence declined slightly in October. The index fell from 95 to 94.
Company news
Technology stocks were under pressure after Microsoft disappointed with its outlook and listed lower on Wall Street. In Europe, Germany’s Infineon fell as much as 7.6 percent and SAP lost almost 5 percent. The software giant lowered its expectations on Monday and was already worth 25 percent less this week.
Banks led the fallers, again with hefty losses for BNP Paribas, which lost 5 percent, and UBS, which lost 4 percent. Deutsche Bank partly escaped the malaise after better than expected results in the investment banking branch and finally black figures again, but fell 1.3 percent.
The sharply lower oil prices weighed on the energy funds Total and BP. Total fell 3.5 percent and BP 1.2 percent.
Carrefour saw a strong increase in turnover in the third quarter and also confirmed the objectives for the coming years. The supermarket chain also wants to save 3 billion euros this year. The share fell 0.1 percent.
Peugeot lost ground after a decline in sales. The French automaker sees the European car market shrink by a quarter this year and closed 4.5 percent lower in Paris.
Carlsberg raised its full year guidance after a strong third quarter. Carlsberg is now counting on an autonomous operating profit decline of up to 5 percent, compared to a decline of 5 to 10 percent previously. The share nevertheless fell 1.4 percent.
Dutch rival Heineken saw quarterly results under pressure due to the corona crisis, but less than analysts had foreseen. The brewer also announced the acquisition of Strongbow in Australia from Asahi Group. The stock lost 3 percent.
BASF plunged deep into the red due to write-downs and restructuring charges, final quarterly figures showed. The stock lost 7 percent.
Beiersdorf saw improvement in the third quarter compared to the previous quarter and sees sales this year on the trend of the first nine months, or slightly better. However, margins will be significantly lower than a year earlier, the company warned. The stock lost 6.5 percent.
Delivery Hero saw the number of orders double in the third quarter and became slightly more positive about sales in 2020. The company expects at least 2.7 billion euros, compared to 2.6 billion previously. The share rose 3 percent.
Independent consultancy Glass Lewis is advising shareholders of Unibail-Rodamco-Westfield to vote in favor of the rights issue worth 3.5 billion euros, Unibail announced Tuesday evening. The real estate fund closed 6.5 percent lower.
Euro STOXX 50 2,963.54 (-3.5%)
STOXX Europe 600 342,17 (-3,0%)
DAX 11.560,51 (-4,2%)
CAC 40 4,571.12 (-3.4%)
FTSE 100 5,582.80 (-2.6%)
SMI 9,618.65 (-2.7%)
AEX 534,09 (-2,1%)
BEL 20 3,047.79 (-3.3%)
FTSE MIB 17.897,79 (-4,1%)
IBEX 35 6.474,40 (-2,7%)
AMERICAN SHARES
Wall Street also opens in the plus on Thursday, according to US futures.
The American stock markets were closed considerably lower on Wednesday.
The rising number of corona infections worldwide and the resulting threat of renewed lockdowns is weighing on investor confidence. The number of new infections rose by more than 73,000 in the United States on Tuesday.
“In 36 states, the number of hospital admissions due to the coronavirus has increased by at least 5 percent in the past seven days,” said CMC Markets market analyst David Madden. “Traders are monitoring hospital admissions because authorities want to ensure that the system is not overrun, as this can often prompt the introduction of stricter measures,” he said.
“A month ago, there was a belief that the lockdowns would be limited and targeted and thus have a smaller impact on the economy,” said JP Morgan Asset Management strategist Hugh Gimber. “But what we are seeing now are growing concerns that the lockdowns may be much broader and therefore have a greater impact,” he said.
The nervousness leading up to the Nov. 3 presidential election, now less than a week away, added to the volatility. Democratic challenger Joe Biden is still ahead of President Donald Trump in the polls, but the race is not over yet.
Trump has caught up with his rival Joe Biden in the polls for the US state of Florida. “And Florida is the great unknown during the elections, where no fewer than 29 electoral votes can be won. That adds up very hard,” explained analyst Corne van Zeijl of Actiam. That increases the likelihood of a contested election result, and investors don’t like that uncertainty, the analyst said.
Van Zeijl also pointed to North Carolina, also an important state, where Biden’s lead is rapidly diminishing.
Investors had hoped that talks between the White House and Democrats on a new stimulus package would result in an election deal, but that hope has now faded.
On a macroeconomic level, it was announced in the United States on Wednesday that wholesale stocks in the United States fell slightly in September. The number of mortgage applications rose 1.7 percent in the US last week. The market index rose from 794.2 to 807.8.
The December futures for a barrel of crude oil closed 5.5 percent, or $ 2.18, lower at $ 37.39 on the New York Mercantile Exchange on Wednesday, after the latest data from the U.S. Energy Information Administration showed crude oil stocks in the United States rose last week.
On a macroeconomic level, three publications are on the agenda in the United States on Thursday. Weekly subsidy applications and economic growth figures for the third quarter appear in advance, followed by upcoming home sales later in the day.
Company news
Microsoft was down nearly 4.0 percent after the tech company released better-than-expected results late Tuesday, with growth in its three major divisions driven by strong demand for cloud services and computers during the corona pandemic. The stock nevertheless opens probably 2.5 percent lower. Some investors were disappointed with the outlook provided by Microsoft.
UPS posted significantly better results in the third quarter. CEO Carel Tomé pointed to the growth in Asia and increased demand in small and medium-sized businesses as drivers for the better results. Due to all the uncertainties, UPS again did not issue an outlook. The share lost approximately 8.5 percent.
General Electric has also seen its results under strong pressure in the third quarter of 2020, but has underperformed analyst expectations. The share rose approximately 5.5 percent.
Boeing was again hit hard by the corona crisis in the third quarter, but keeping 737 MAX on the ground also hurt, putting results under heavy pressure. The stock was down about 3.5 percent.
Garmin achieved more sales and profit in the third quarter of 2020. For 2020, the American navigation specialist is expecting a turnover of approximately $ 4 billion, with the Auto and Aviation divisions pushing down sales. The share fell 0.5 percent.
GlaxoSmithKline saw its results under pressure in the third quarter, but managed to make more profit than expected. Pharmaceuticals fell about 3.4 percent.
Mastercard posted less profit than expected in the third quarter, driven by lower sales due to the corona crisis, particularly in travel. The share lost more than 7.5 percent.
Nabeurs follows competitor Visa with figures. Amgen, eBay, Ford and Gilead Sciences are also on the agenda.
S&P 500 index 3.271,14 (-3,5%)
Dow Jones index 26.520,54 (-3,4%)
Nasdaq Composite 11.004,87 (-3,7%)
ASIA
The Asian stock markets were mainly lower on Thursday.
Nikkei 225 23.354,58 (-0,3%)
Shanghai Composite 3.271,00 (+0,1%)
Hang Seng 24,562.79 (-0.6%)
EVALUATE
The euro / dollar was trading at 1.1751. When the American stock markets closed on Wednesday, the currency pair was still moving at 1.1748 and when the European stock exchanges closed, the boards still stood at 1.1757.
USD/JPY Yen 104,38
EUR/USD Euro 1,1751
EUR/JPY Yen 122,67
MACRO-AGENDA:
00:00 People’s Congress China (Chi)
00:50 Retail sales – September (Jap)
05:00 Bank of Japan – Interest rate decision (Jap)
06:30 Producer confidence – October (NL)
09:55 Unemployment – October (Ger)
11:00 Consumer confidence and economic sentiment – October (eur)
11:00 Economic growth – Third quarter vlpg. (Call)
11:30 Inflation – October (Call)
13:30 Support Applications – Weekly (US)
13:30 Economic growth – Third quarter vlpg. (USA)
13:45 European Central Bank – Interest rate decision (eur)
14:00 Inflation – October vlpg. (Dld)
14:30 European Central Bank – Explanation Lagarde (eur)
3:00 PM Upcoming Home Sales – September (US)
COMPANY NEWS:
00:00 Nokia – Third quarter figures (Fin)
00:00 Samsung – Figures third quarter (ZKor)
00:00 Spotify – Figures third quarter (Zwe)
00:00 Volkswagen – Figures third quarter (Dld)
00:00 Worldline – Figures third quarter (Fra)
07:00 Airbus – Figures third quarter (Fra)
07:00 Credit Suisse – Figures third quarter (Zwi)
07:00 Sanofi – Figures third quarter (Fra)
08:00 Lloyds – Third quarter figures (UK)
08:00 Royal Dutch Shell – Figures third quarter (UK)
08:00 Standard Chartered – Third Quarter Figures (UK)
12:00 ConocoPhillips – Third quarter figures (US)
12:00 Comcast – Third Quarter Figures (US)
12:00 DuPont – Third Quarter Figures (US)
12:00 Kraft Heinz – Figures third quarter (US)
12:00 Moderna – Third quarter figures (US)
21:00 Alphabet (Google) – Third quarter figures (US)
21:00 Amazon – Third quarter figures (US)
21:00 Facebook – Figures third quarter (US)
9:00 PM Starbucks – Fourth Quarter Figures (US)
21:00 Twitter – Third quarter figures (US)
21:30 Apple – Fourth quarter figures (US)
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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