(ABM FN-Dow Jones) European stocks will open lower on Friday, pending the US jobs report.
IG foresees an opening loss of 26 points for the German DAX, a plus of 5 points for the French CAC 40 and an 11 point drop for the British FTSE 100.
European stocks closed higher on Thursday.
The market was able to react for the first time on Thursday to the Fed’s interest rate decision, which came out after hours on Wednesday. As expected, the Federal Reserve maintained its key interest rates. The US central bank also announced that it will cut its USD 120 billion bond purchases by USD 15 billion each month. The central bank stressed that the pace at which it cuts back purchases will depend on the economic outlook.
Commenting on the decision, Fed Chair Jerome Powell said the asset-buying program will end at the announced pace in mid-2022. The central banker emphasized that despite this tapering, monetary policy is still very supportive of the US economy. According to Powell, now is not the time to hike rates and the Fed could be “patient” with raising rates, he said.
“This announcement was exactly what analysts expected, and we expected it too. Fed Chair Jerome Powell said in the commentary to the press release that he continues to believe that the high inflation is only temporary and will be in the second or third quarter of the year. will decrease next year,” said ING investment manager Simon Wiersma. According to Wiersma, an interest rate increase may not start until the tapering is finished, which could be in June next year.
On a macroeconomic level, it was announced on Thursday that the growth of the services sector has slowed in October. The purchasing managers’ index for the services sector came in at 54.6 against 56.4 in September.
The German index showed a similar picture, while the sector in France gained momentum. In Italy there was also a slowdown in growth, as in Spain.
German factory orders rose by 1.3 percent and 9.7 percent respectively in September on a monthly and annual basis.
Company news
Credit Suisse quits securities trading and shifts its focus from investment bank to asset manager and bank for wealthy clients, in order to reduce risk. The stock fell nearly 5.0 percent.
Siemens Healthineers had a strong year and exceeded its own outlook. The stock gained 1.6 percent.
In Paris, Veolia went on sale with a profit of more than 4.5 percent, while BNP Paribas dangled at the bottom with a loss of about 1.5 percent. Credit Agricole lost 1.4 percent.
In Frankfurt, Zalando was 4.4 percent higher, Deutsche Post gained 2.7 percent, while Deutsche Bank was 3.7 percent lower.
Euro STOXX 50 4,333.34 (+0.6%)
STOXX Europe 600 483,21 (+0,4%)
DAX 16.029,65 (+0,4%)
CAC 40 6,987.79 (+0.5%)
FTSE 100 7,279.91 (+ 0.4%)
SMI 12,403.05 (+ 0.2%)
AEX 820,38 (+0,5%)
BEL 20 4,402.32 (+ 0.8%)
FTSE MIB 27.522,05 (+0,5%)
IBEX 35 9.039,40 (+0,1%)
US EQUITIES
Wall Street opens in the red on Friday, according to US futures.
US stocks closed slightly higher on Thursday.
A strong winter season has shown strong demand for products and services so far, easing concerns that higher prices could weigh on Americans’ spending.
In addition, the market was still processing Wednesday’s interest rate decision from the Federal Reserve on Thursday. The US central bank has announced that it will scale back its $120 billion bond-buying program by $15 billion a month, although the pace could be adjusted according to the economic outlook. According to chairman Jerome Powell, it is not yet the time to roll back interest rates.
Even with the easing of pandemic-driven stimulus, the bond buying program and low interest rates will continue to support equities, market followers say.
“The liquidity being pumped into the market is the most powerful support there is,” said market analyst Hani Redha of PineBridge Investments. “Yes, yesterday we got an announcement that support is going to weaken, but even then there is the remaining support supporting the market,” Redha added.
On a macroeconomic level, it was announced on Thursday that the number of first-time jobless claims in the US fell by 14,000 to 269,000 last week, while the market expected 275,000 applications.
As expected, the US trade deficit rose to a record deficit in September. The deficit increased by 11.2 percent from $72.8 billion to $80.9 billion.
A December crude oil futures closed 2.5 percent, or $2.05, lower on the New York Mercantile Exchange at $78.81 on Thursday.
On a macroeconomic level, two publications are on the agenda in the United States on Friday. The US jobs report for October will be released before the stock market, followed by consumer credit in September later in the day.
Company news
Moderna came up with figures before the fair. Third quarter profit and sales were below expectations. The biotech company also reported that its corona vaccine has an efficacy of 100 percent in children aged 6 to 12 years, according to interim data, two weeks after the first dose. The stock fell nearly 20.0 percent.
Regeneron lost almost 1.0 percent after the pharmaceutical company released strong quarterly figures. The results were boosted last quarter by, among other things, a proceeds of more than 800 million dollars from his antibody treatment against the corona virus.
ViacomCBS benefited from its TV and streaming services in the third quarter, resulting in a stronger-than-expected revenue growth. Earnings were in line with analysts’ expectations. The stock was down more than 4.0 percent.
Qualcomm rose more than 12.0 percent after the semiconductor manufacturer came after trading with better-than-expected results on Wednesday from its broken fiscal year. The outlook for the new year was also strong.
Booking increased revenue in the third quarter, on the back of signs of recovery in various parts of the world, although profits declined slightly, due to a net loss of $1.0 billion on equities with an easily determinable fair value, while earnings in the same period last year was propped up by a $730 million gain on stocks. The stock gained about 0.7 percent.
S&P 500 index 4.680,06 (+0,4%)
Dow Jones index 36.124,23 (-0,1%)
Nasdaq Composite 15.940,31 (+0,8%)
ASIA
Asian stocks were in the red on Friday.
Nikkei 225 29.610,89 (-0,6%)
Shanghai Composite 3.510,88 (-0,5%)
Hang Seng 24,970.76 (-1.0%)
EVALUATE
The euro/dollar traded at 1.1552. When the US markets closed on Thursday, the currency pair still moved at 1.1558 and at the close of the European markets there was still a position of 1.1544 on the plates.
USD/JPY Yen 113,68
EUR/USD Euro 1,1552
EUR/JPY Yen 131,32
MACRO-AGENDA:
08:00 Industrial Production – September (Ger)
11:00 Retail sales – September (eur)
11:00 Retail Sales – September (Call)
13:30 Job growth and unemployment – October (US)
20:00 Consumer Credit – September (US)
COMPANY NEWS:
– No agenda items
Bron: ABM Financial News
From Beursplein 5, the editors of 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.
–
