European stock markets are expected to open lower

(ABM FN-Dow Jones) European stock markets will open lower on Monday.

IG expects an opening loss of 62 points for the German DAX and -33 points for the French CAC 40. It seems that the British FTSE index is ready to open at least 14 points.

Stock markets in Europe also ended lower on Friday. The Stoxx Europe 600 index fell 1.1 percent to 459.17 points. The German DAX index lost 1.0 percent at 15,832.17 points. The French CAC 40 index had to lose 1.3 percent, with a result of 7,340.19 points. The British FTSE index closed down 1.2 percent at 7,524.16 points.

After two days of gains, European markets ended Friday lower, after US markets fell sharply towards the end of trading on Thursday evening. This was due to comments made by Mary Daly, President of the Federal Reserve Bank of San Francisco, who indicated that the US central bank has more work to do when it comes to raising interest rates.

Analyst Michael Hewson of CMC Markets saw interest rates rise after her comments, putting pressure on stock markets. “This shows how anxious investors are when it comes to the inflation outlook, also given that Daley has no voting rights on Fed policy this year,” the analyst said.

More than 90 percent of the market believes the Fed will not raise interest rates in September, according to the CME FedWatch Tool. That was 82 percent before Thursday’s weekly inflation and assistance figures. At the beginning of July, that chance was only 72%.

It also didn’t help, Hewson said, that data from China earlier in the week showed the country was in recession, despite the recent surge in energy prices.

On a macro level, there were British growth figures. The British economy rose 0.2 percent in the second quarter, after growing 0.1 percent in the previous quarter. Economists did not expect Britain’s GDP to rise. France’s consumer prices rose 4.3 percent year-on-year in July, according to preliminary figures released at the end of July. In June, an inflation rate of 4.5 percent was calculated.

It was also announced on Friday that producer prices in the US rose slightly faster than expected in July. Producer prices rose 0.3 percent month on month, after setting the time in June. Economists expected an increase of 0.2 percent. Excluding volatile trade, food and energy prices, US producer prices rose 0.2% in July.

US consumer confidence in the Michigan region was also reported to have eased slightly. The Consumer Confidence Index decreased from 71.6 to 71.2. The inflation forecast for the next 12 months was 3.3 percent. In July this was still 3.4 percent.

EUR/USD was trading at 1.0956 and the US 10-year yield rose to 4.15% after inflation data this afternoon. Oil prices increased by 0.7 percent, and the price of Brent oil reached $87.08.

Company news

In Amsterdam, technology funds were under pressure with losses ranging between 2.4 and 3.8 percent in ASMI, ASML, BESI, Adyen, Prosus and others.

In Brussels, KBC recovered from a share price loss on Thursday, following quarterly results. KBC rose 0.9 percent. Sofina and Covenimo each lost about 2.6 percent.

In Paris, Teleperformance lost 4.2% and Stellantis lost 3.4%. Orange managed a modest 0.3 percent profit on boards.

Commerzbank was among the top gainers in Frankfurt, with an increase of 2.2 percent. Infineon, Zalando and Continental lost more than 3 percent.

Euro Stoxx 50 4320.75 (-1.44%)
Stokes Europe 600 459.08 (-1.11%)
DAX 15,832.17 (-1.03%)
CAC 40 7,340.19 (-1.26%)
FTSE 100 7,524.16 (-1.24%)
SMI 11,081.63 (-0.61%)
Aix 765.16 (-1.62%)
Bell 20 3,684.94 (-0.91%)
FTSE MIB 28,274.74 (-1.05%)
IBEX 35 9,429.00 (-0.77%)

US stocks

On Monday, US stock markets will open lower.

Wall Street closed mostly lower on Friday.

Investors focused this past week on the new inflation data being released and the possibility of price pressures returning again later this year. That is fueling the debate over whether the Fed has ended its rate hike campaign this cycle, or whether it may need to make some additional hikes.

Throughout the morning, futures suffered from hawkish comments from Federal Reserve Member Mary Daley, who said “there is still work to be done” in combating inflation, despite a further drop in core prices in July, it was reported Thursday.

“The question of whether we will raise interest rates again or keep them stable for a longer period of time has not yet been answered.” “We need to bring inflation back to pre-pandemic levels if we want to make sure we can get to 2 percent on a sustainable basis,” said Daly.

Thus, the official start of trading on Wall Street was mild, and the publication of disappointing producer prices in the US did not help either, causing bond yields to rise even further. However, the indices during the trading day managed to limit losses to some extent.

Today it was announced that producer prices in the US rose slightly faster than expected in July. Producer prices rose 0.3 percent month on month, after setting the time in June. Economists expected an increase of 0.2 percent. Excluding volatile trade, food and energy prices, US producer prices rose 0.2% in July.

US consumer confidence in the Michigan region was also reported to have eased slightly. The Consumer Confidence Index decreased from 71.6 to 71.2. The inflation forecast for the next 12 months is 3.3%. In July this was still 3.4 percent.

EUR/USD was trading at 1.0945 and the 10-year yield in the US rose to 4.17 percent after inflation data this afternoon. Oil prices rose 0.4 percent and the cost of a barrel of WTI was $83.19.

Company news

Shares of UBS rose 5.6 percent on news that the Swiss investment bank had finalized an almost $10 billion loss protection and government liquidity provision deal with Credit Suisse. The company also confirmed that Credit Suisse has fully repaid an emergency loan of CHF50 billion to the Swiss National Bank. Partly for this reason, the stock closed in the US at its highest price in one year.

And News Corp shares rose 4.6 percent today. The company released the numbers on Thursday after the close of trading. Losses were incurred last quarter, in part due to lower profits at the media group’s publishing house.

Wal-Mart shares closed up 0.6 percent, thus setting a new record. Shares of the discount giant were on track to a record-breaking fourth in nine trading sessions so far in August. The share gain anticipates Walmart’s second-quarter earnings, which are scheduled to be released on August 17, before the opening bell.

Shares of Archer Aviation may not benefit right now after the maker of the eVTOL aircraft, which can be used as an air taxi service, announced that a legal matter with Boeing has been resolved and that the aerospace giant is participating in a funding round from Archer. The stock closed down 1.0 percent.

Shares of WeWork have been volatile in recent days, after the owner of co-working spaces said he had doubts about the company’s survival. The share price loss of about 40 percent on Wednesday was erased again on Thursday. Today, the stake has managed to add nearly 10 percent to $0.21.

Pharmaceutical company Cano Health has also expressed concern about the company’s survival in the coming year. These shares are down more than 70 percent today.

S&P 500 4,464.05 (-0.11%)
Dow Jones 35,281.40 (+0.30%)
Nasdaq Composite 13,644.85 (-0.6%)

Asia

Asian stock markets are in the red on Monday.

Nikkei 225 32,073.40 (-1.2%)
Shanghai Composite 3,156.90 (-1.0%)
Hang Seng 18.6161.11 (-2.4%)

currencies

The euro/dollar was trading at 1.0935 this morning. On Thursday evening, the currency pair was trading at 1.0945.

US dollar / Japanese yen 144.90
EUR/USD EUR 1.0935
Euro / Japanese Yen 158.43

Macro agenda:
– There are no items on the agenda

Company news:
07:00 Sipef – Second quarter numbers

Source: ABM Financial News

ABM Financial News is a resource for stock market news, video and data, for both online and offline real-time trading platforms, trading rooms and media publications. The information in this article is not intended to be professional investment advice or as a recommendation to make certain investments.