(ABM FN-Dow Jones) European stocks will open lower on Thursday. IG Markets forecast an opening loss of 163 points for the German DAX, a minus of 86 points for the French CAC 40 and a 75 point drop for the British FTSE 100.
European stocks closed higher on Wednesday after brisk moves in the past three trading days, in which monetary policy and corona battled each other for the most attention.
“European stocks made a nice turnaround on Wednesday and started December more positively than they ended November,” said market analyst Michael Hewson of CMC Markets. Hewson spoke of a “zigzagging” movement in the stock markets in recent trading days, mainly due to developments around the omikron variant of the corona virus.
The DAX in particular has had a strong day, according to Hewson, despite concerns about the way the German health system is handling the delta variant of the corona virus. The British FTSE 100 index lagged slightly today, according to the analyst.
“We may see some stabilization after the strong moves in recent days,” Hewson said, excluding setbacks around omikron.
According to Hewson, there are several reasons why the stock market is currently more positive, including statements by BioNTech CEO Ugur Sahin that current vaccines offer reasonable protection against the latest variant, despite being less effective. “As a virologist, he offers a good counterbalance to the alarming tone of CEO Stephane Bancel of Moderna, who caused a sales wave on Tuesday.”
Hewson also pointed to statements by a top executive at the World Health Organization, who stated that new vaccines are probably not necessary and that the side effects of the new variant have so far been mild. This also boosts sentiment, the analyst said.
Purchasing managers indices of industries in Europe, without exception, showed growth in November. The Purchasing Managers’ Index for the monetary union industry rose from 58.3 to 58.4 in November. A preliminary indication was 58.6.
“A strong figure masks how tough market conditions are for manufacturers right now,” Markit economist Chris Williamson said in a statement. Demand is good, but supply chain problems are growing rapidly, the economist said. Corona remains a thundercloud over the market, Williamson warns.
In the US, Markit’s numbers indicated a slight slowdown in growth, but ISM’s showed an acceleration.
There was also a better than expected jobs report from ADP from the US. The official report will follow on Friday.
Company news
Sanofi on Wednesday reiterated its medium-term outlook and remains confident in its vaccine candidates. The company also acquires Origimm Biotech for an undisclosed amount. The stock closed 2.4 percent higher.
Unlike Tuesday, the main stock prices turned green. Stellantis was an eye-catcher in Paris with a plus of 5.7 percent. The Eurofins share suffered a loss of 5.8 percent.
In Frankfurt, the Hellofresh share saw the price drop by 3.5 percent and that of the Sartorius share also fell 3.8 percent.
Euro STOXX 50 4,177.83 (+2.8%)
STOXX Europe 600 470,86 (+1,7%)
DAX 15.472,67 (+2,5%)
CAC 40 6,881.87 (+2.4%)
FTSE 100 7,168.68 (+ 1.6%)
SMI 12,266.46 (+ 0.9%)
AEX 790,70 (+1,7%)
BEL 20 4,154.97 (+ 1.0%)
FTSE MIB 26.371,92 (+2,2%)
IBEX 35 8.452,60 (+1,8%)
US EQUITIES
Wall Street opens higher on Thursday, according to US futures.
U.S. stock markets failed to hold onto gains from earlier in the day on Wednesday and fell sharply towards the end of the trading day.
During the day, confirmation came that the first infection with the omikron variant of the coronavirus had been detected in the United States in someone returning from a trip to South Africa on November 22. As a result, prices on Wall Street fell sharply. The oil price also fell.
Earlier in the day, US stocks were even higher. Then investors shook off the surprising change in attitude from Fed Chair Jerome Powell,” said market analyst Michael Hewson of CMC Markets. Powell said on Tuesday that it may be necessary to taper faster.
Job data also initially gave investors a positive outlook. Last week, 534,000 jobs were added in the US, according to figures from payslip processor ADP. Rabobank spoke of a strong and widely supported jobs report. “November continues the trend of October with growth contributing from all sectors,” said market analyst Philip Marey.
“The US economy is rippling ahead,” Hewson said. The official report will follow on Friday.
The numbers season is on its last legs. On Tuesday evening after the close of trading, Hewlett Packard and GlobalFoundries came up with figures and this afternoon it was the turn of Constellation Brands.
“We expect the market to gradually shift its focus away from omikron towards positive growth and earnings data, allowing equities to resume their upward trend,” said UBS CIO Mark Haefele. According to him, this is mainly positive for Japanese and European equities, energy and financials.
“We can see some stabilization after the strong movements of the past few days,” Hewson predicts, excluding setbacks around omikron.
Not everyone shares this expectation. Independent Advisor Alliance CIO Chris Zaccarelli foresees high short-term volatility. “Below the line, there is more uncertainty over the markets than a few weeks ago,” Zaccarelli said. “That’s enough reason for investors to pull the trigger now and ask the questions later.”
The January future for a barrel of West Texas Intermediate crude oil closed 0.9 percent lower on the New York Mercantile Exchange at $65.57 on Wednesday. This is the lowest level in more than three months.
The euro/dollar traded at 1.1311. At the start of the trading day, the currency pair moved at 1.1321 and when the US markets closed on Tuesday, the plates were at 1.1311.
Company news
ExxonMobil aims to double its profit and cash flow by 2027 compared to 2019. In addition, it will invest 20 to 25 billion dollars annually, including in green projects. The stock fell fractionally.
Hewlett Packard saw profits soar thanks to a legal victory over Oracle. Turnover rose slightly. The outlook for the whole of 2021 was repeated. The stock closed 3.4 percent higher.
GlobalFoundries surprised positively, with revenue growth and black numbers. The stock closed in the red to 4.3 percent.
BioNTech lost 4.9 percent, despite CEO Ugur Sahin telling Reuters that its co-developed vaccine with Pfizer probably protects well against the omikron variant.
Shares of Salesfoce.com closed 11.8 percent lower on Wednesday, after issuing a disappointing outlook.
General Motors revised its full-year profit expectations upwards on Wednesday, General Motors CFO Paul Jacobson announced at a Credit Suisse conference. The automaker now targets pre-tax profits of approximately $14 billion for the entire year, previously targeting the upper end of the $11.5 to $13.5 billion range. General Motors rose 0.4 percent.
S&P 500 index 4.513,04(-1,2%)
Dow Jones index 34.022,04 (-1,3%)
Nasdaq Composite 15.254,05 (-1,8%)
ASIA
Asian stocks were mixed on Thursday.
Nikkei 225 27.859,09 (-0,3%)
Shanghai Composite 3.578,63 (+0,1%)
Hang Seng 23,729.63 (+ 0.3%)
EVALUATE
The euro/dollar traded at 1.1320. When the US markets closed on Wednesday, the currency pair still moved at 1.1314 and at the close of the European markets there was still a position of 1.1324 on the plates.
USD/JPY Yen 113,05
EUR/USD Euro 1,1320
EUR/JPY Yen 128,00
MACRO-AGENDA:
07:00 Consumer Confidence – November (Jap)
11:00 Unemployment – October (eur)
11:00 Producer prices – October (eur)
14:30 Support Requests – Weekly (US)
00:00 OPEC+ . Meeting
COMPANY NEWS:
13:00 Kroger – US Third Quarter Figures
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.
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