(ABM FN-Dow Jones) The European stock markets are heading for a lower opening on Friday, after a stream of US tech data on Thursday evening.
IG anticipates an opening loss of 164 points for the German DAX, a minus of 63 points for the French CAC 40 and a drop of 36 points for the British FTSE 100.
The European stock markets were closed on Thursday around the closing positions on Wednesday, following the interest rate decision by the European Central Bank and in anticipation of the figures from a group of large American tech companies.
Market analyst David Madden of CMC Markets saw that the European markets were unable to hold on to the opening profits after the price drop on Wednesday. Investors were cautious, he said, now that new measures have been announced in Germany and France due to the rapidly increasing number of corona infections.
As expected, there were no changes at the ECB today, but the central bank clearly hinted at new intervention in December.
The ECB said the new December projections “allow for an in-depth assessment of the economic outlook and risks”. On this basis, the central bank will, where necessary, make changes to its policies to continue supporting the economic recovery.
According to market analyst Bas van Geffen of Rabobank, this means that the ECB is preparing to take action. “She is still a very small blow in terms of vaccines, lockdowns and the economic outlook, but with the current information this is a clear signal to the market that they are brooding on more.”
German unemployment fell from 6.3 to 6.2 percent in October, an unexpected drop. German consumer prices rose slightly in October.
Eurozone consumer confidence in October was negative at 15.5, lower than negative 13.9 in September. The figure was therefore in accordance with an earlier estimate.
Company news
Shell became 4.1 percent more expensive. The so-called CCS result, that is, the profit based on estimated current costs and excluding exceptional items attributable to shareholders, amounted to $ 955 million. As a result of the corona crisis and the lower oil price, analysts had expected profits to fall to 146 million dollars. Shell increased the quarterly dividend by 4 percent.
Airbus made a loss in the third quarter of this year and took a provision for a possible restructuring as a result of the corona crisis. Airbus did not come up with an outlook for the forecast EBIT this year, due to the impact of the corona crisis on the activities. The aircraft manufacturer is, however, aiming for at least a break-even free cash flow for mergers and acquisitions for the fourth quarter, provided that no further disruptions occur. Airbus closed 0.4 percent lower.
AB InBev, which presented a strong quarterly update, rose 0.5 percent. “A surprisingly strong quarterly update,” said Kepler Cheuvreux. Degroof Petercam even issued a buy recommendation. KBC Securities emphasized that the revival of the corona pandemic creates uncertainty about the short-term outlook. AB InBev also decided to cancel the interim dividend.
Volkswagen saw sales and profit decline in the third quarter, but saw a clear recovery, which meant that the outlook could be maintained for the whole year. For the whole of 2020, Volkswagen continues to aim for a turnover that will be significantly lower than a year earlier. The carmaker also still expects that operating profit will be notably lower than in 2019, but will still be positive, both including and excluding one-off items. The stock posted a gain of 1.1 percent.
Telefonica saw its loss decline in the third quarter of this year, but is still suffering from the corona crisis in many markets. The stock was trading 5.2 percent below Wednesday’s closing price.
Orange saw sales pick up in France, Africa and the Middle East in the third quarter of this year, compensating for a contraction in other regions. Orange continues to expect a slight decline in EBITDA after leases of approximately 1 percent for 2020, including the full impact of the corona crisis. In addition, the telecom company continues to aim for an organic cash flow of more than 2.3 billion euros from the telecom activities. Orange closed 6.1 percent in green.
Sodexo went into the red in the past year and decided not to pay a dividend. The share price was 1.4 percent higher.
Sanofi saw its net profit pick up in the third quarter of this year and as a result became more positive about the forecast earnings per share this year. Sanofi increased its operating earnings per share outlook. The pharmaceutical company is aiming for a profit growth of 7 percent for this year, or 8 percent at constant exchange rates. Previously, the target was a growth of 6 percent and 7 percent at constant exchange rates. Sanofi lost 1.0 percent.
Credit Suisse plans to buy back its own shares next year and also to pay a higher dividend. Credit Suisse lost 5.6 percent.
Nokia has seen sales under pressure in the third quarter of this year and became slightly more cautious for the whole of 2020. Nokia is now aiming for a profit per share of 0.23 euros with a margin of 3 cents. Earlier, Nokia aimed for 0.25 euros with a margin of 5 cents. Over the past nine months, the counter stood at 0.11 euros per share. Nokia lost a whopping 18.5 percent.
Euro STOXX 50 2,960.03 (-0.1%)
STOXX Europe 600 341,76 (-0,1%)
DAX 11.598,07 (+0,3%)
CAC 40 4,569.67 (0.0%)
FTSE 100 5,581.75 (0.0%)
SMI 9,556.14 (-0.7%)
AEX 534,43 (+0,1%)
BEL 20 3,036.59 (-0.4%)
FTSE MIB 17.872,28 (-0,1%)
IBEX 35 6.411,80 (-1,0%)
AMERICAN SHARES
Wall Street opens lower on Friday, according to US futures.
The US stock markets were closed in green on Thursday, after Wednesday’s price drop.
There were some macroeconomic data and an interest rate decision from the European Central Bank, but most of the attention was focused on the flow of business figures.
Before the fair there were already a lot of figures, but the most eye-catching ones were yet to come. After the fair, Apple, Alphabet, Facebook, Amazon.com and Twitter opened their books.
“I am not looking at the past quarter because the recovery was so strong that it is almost a given that there is improvement,” said Luca Paolini of Pictet Asset Management. “I want to see if companies are confident enough to provide forecasts for the coming quarters.”
Investors are cautious in the run-up to the presidential election on Nov. 3, but this week’s selloff may present a buying opportunity. “The reality is that investors still have a lot of cash,” said Daryl Lieuw of REYL Singapore.
The US economy grew at a record 33 percent in the third quarter, making up for the contraction caused by the corona crisis of 31 percent a quarter earlier.
Weekly claims for new unemployment benefits continue to decline. The number fell by 40,000 to 751,000 last week.
The oil price fell sharply. The December futures for a barrel of crude oil on the New York Mercantile Exchange closed 3.3 percent, or $ 1.22, lower at $ 36.17.
“Oil is taking a hit,” said Axi market analyst Stephen Innes. It is starting to look like a “perfect storm” for the black gold, which has already lost so much of its luster this year, according to the analyst. On the one hand, Libya is boosting oil production, while the corona crisis is causing oil demand to drop.
Company news
Google has seen its revenue and profit increase in the third quarter, with ad revenue increasing again. The Alphabet share rose by 8.7 percent after publication of the quarterly figures.
Facebook has seen its revenue and profit increase in the third quarter. Facebook expects a stronger increase in advertising income for the fourth quarter than in the third quarter. But for 2021, the social media company said it saw “a lot of uncertainty.” Facebook’s share fell 1.3 percent in electronic after-market trading on Thursday.
Amazon.com performed significantly better than expected in the third quarter. In the fourth quarter, Amazon expects sales in a range of $ 112 billion to $ 121 billion. That would mean an annual increase of 28 to 38 percent. CEO Jeff Bezos is counting on an excellent festive season. The share fell over one percent after the market.
Apple posted slightly more sales in the fourth quarter, but saw profits decline. In the past quarter, revenues from the number of iPhones sold fell from 33.4 billion to 26.4 billion dollars. Apple delayed the launch of the new iPhone 12 due to the corona outbreak. Apple’s total revenue increased from $ 64.0 billion to $ 64.7 billion. Net profit fell from $ 13.7 billion to $ 12.7 billion. Apple became more than 5 percent cheaper.
Twitter has barely seen the number of users grow in the third quarter. Daily users reached 187 million in the third quarter, a year-on-year growth of 29 percent. In the second quarter, however, Twitter already had 186 million users, so that only 1 million users were added in a quarter. The Twitter share fell by almost 15 percent after the market.
S&P 500 index 3.310,11 (+1,2%)
Dow Jones index 26.659,11 (+0,5%)
Nasdaq Composite 11.185,59 (+1,6%)
ASIA
The Asian stock markets were broadly in red on Friday.
Nikkei 225 23.018,17 (-1,3%)
Shanghai Composite 3.256,88 (-0,5%)
Hang Seng 24,404.94 (-0.7%)
EVALUATE
The euro / dollar was trading at 1.1681. When the US stock markets closed on Thursday, the currency pair was still moving at 1.1672.
USD/JPY Yen 104,14
EUR/USD Euro 1,1681
EUR/JPY Yen 121,65
MACRO-AGENDA:
00:30 Unemployment – September (Jap)
00:50 Industrial production – September (Jap)
06:30 Retail sales – September (NL)
06:30 Producer prices – September (NL)
07:30 Economic growth – Third quarter vlpg. (Fra)
08:00 Economic growth – Third quarter vlpg. (Dld)
8:00 am Retail sales – September (Ger)
08:45 Inflation – October vlpg. (From)
11:00 Economic growth – Third quarter vlpg. (EUR)
11:00 Inflation – October vlpg. (EUR)
11:00 Unemployment – September (eur)
11:30 Producer Prices – September (Bel)
12:00 Economic growth – Third quarter (Ita)
13:30 Personal Income and Expenditure – September (US)
13:30 Labor costs – Third quarter vlpg. (USA)
14:45 Purchasing Managers Index Chicago – October (US)
3:00 PM Consumer Confidence Michigan – October final. (USA)
COMPANY NEWS:
00:00 Caixabank – Figures third quarter (Spa)
00:00 Total – Figures third quarter (Fra)
07:15 Air France-KLM – Third quarter figures (Fra)
08:00 Royal Bank of Scotland – Third quarter figures (UK)
12:00 AbbVie – Third Quarter Figures (US)
12:00 Chevron – Third Quarter Figures (US)
12:00 Colgate-Palmolive – Third Quarter Figures (US)
12:00 Exxon Mobil – Third Quarter Figures (US)
12:00 Honeywell – Third quarter figures (US)
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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