European shares are expected to open unchanged

(ABM FN-Dow Jones) European shares will open unchanged on Wednesday.

IG expects an opening 1 point gain for the German DAX, a 10 point drop for the French CAC 40 and a 4 point drop for the British FTSE 100.

European shares closed significantly higher on Tuesday, after investors regained confidence amid fading concerns about the omikron variant of the coronavirus.

“Sellers were brutally pushed back last week in a rush to get back into stocks as concerns about omikron fade as quickly as they came,” said Chris Beauchamp, analyst at IG.

The new variant appears to be highly contagious, but causes only mild symptoms. In general, this would be an improvement over the previous situation in which the more dangerous variant of the virus from Delta was prevalent worldwide.

Economic news from the US pointed to a sharp decline in the trade deficit, while labor costs rose more than previously forecast in the third quarter, by 10 percent.

Earlier today, German manufacturing was found to have produced 3 per cent more in October, with economists forecasting 1 per cent growth. The German ZEW confidence index fell to 29.9 in December, but remained well above the 25.0 economists had expected.

Eurozone economic growth in the third quarter came in at 2.2 percent on a quarterly basis, in line with the previous report. On an annual basis, the monetary union economy grew by 3.9 percent, just above the initial measurement of 3.7 percent.

company news

Technology stocks in Amsterdam did well on Tuesday. Semiconductor giant ASML rose 8.3 percent, while ASMI rose 8.6 percent. Payments company Adyen and online investor Prosus gained 6 percent in value.

In Frankfurt, semiconductor company Infineon also took a big 6 percent win, but automakers Volkswagen and Porsche took the pie with 8 to 9 percent in price.

Danone was among the rare losers in Paris and closed down 0.6 percent.

In London, miners were in demand with a price gain of nearly 6% for BHP and Anglo American.

Zumtobel made less profit from increased sales and indicated a shortage of semiconductors and other raw materials and a lack of transmission capacity. Orders were very good this quarter and the higher purchase prices could pass on to the customer. The stock rose more than 2 percent.

Euro Stoxx 50 4,276.20 (+3.36%)
STOXX Europe 600480,18 (+2,5%)
DAX 15,813,94 (+2.82%)
CAC 40 7065.39 (+2.91%)
FTSE 100 7,339.90 (+1.49%)
SMI 12,513.62 (+12%)
AEX 805.78 (+3.51%)
BEL 20 4,227.56 (+ 1.08%)
FTSE MIB 27.137,51 (+2.41%)
IBEX 35 8,559.50 (+1.42%)

US property rights

Wall Street opened in the green on Wednesday, according to US futures.

US stocks also closed sharply higher on Tuesday, benefiting from Monday’s price gains, with technology stocks advancing.

Investors were less afraid of the omikron variant of the coronavirus. This type is likely to be more contagious, but it is also milder.

It also helped the Chinese central bank. Stock markets received an additional boost from China, as the central bank eased monetary policy. “Lower demand for reserves by Chinese banks, promises of more support for the economy, mood is improving as if by magic,” said Kate Jukes of Societe Generale.

The People’s Bank of China announced Monday that banks will have to hold a smaller percentage of their balance sheets as cash reserves, creating nearly $200 billion in additional credit space. For example, China is trying to keep its sluggish economy going.

The move extended to other markets, possibly because the additional monetary space in China would offset monetary tightening by the US Federal Reserve.

Fears that this will lead to higher interest rates have put pressure on high value equity markets in recent weeks.

It is also important that no new shutdowns emerge as a result of the coronavirus omikron variant. Not only does the variant appear to cause serious illness, but GlaxoSmithKline also reported on Tuesday that its treatment with antibodies against the coronavirus is effective against omicron.

US President Joe Biden warned his Russian counterpart Vladimir Putin in a two-hour video call that strong economic and other measures by the United States and Europe would follow in the event of a military escalation between Russia and neighboring Ukraine. The Americans announced this after the conversation. The Kremlin described the talks as “frank and pragmatic”.

There was economic news on consumer lending, which grew less strongly in October than it did in September. On Tuesday afternoon, labor costs in the third quarter rose faster than initially reported, while productivity fell more sharply. The US trade deficit also fell sharply, as expected, to $67.1 billion, thanks to increased exports.

Oil is 3 percent more expensive and closed at its highest level in nearly two weeks. Oil prices fell last week on fears that Omikron will cut oil demand amid new global lockdown measures.

company news

Riskier, growth-oriented sectors led the way, such as technology, energy and consumption-related stocks. Apple closed more than 3 percent.

Bank shares also gained. Morgan Stanley and Wells Fargo closed up 3 per cent
Intel shares rose 3 percent on news that the chip maker plans to list its Mobileye business unit, which is focused on self-driving. The IPO is expected to take place in mid-2022. Intel bought Israel’s Mobileye in 2017 for about $15 billion and the company is now said to be worth $50 billion.
Nvidia closed up 8 percent. The graphics processor maker has lost nearly 10 percent of value in recent days, but is now recovering.

MongoDB gained 16 percent after announcing a limited loss for the last quarter, on better-than-expected sales.

S&P 500 Index 4,686.75 (2.07%)
Dow Jones 35.719.43 (+1.40%)
Nasdaq Composite 15.686.90 (+3.03%)

Asia

Asian stocks mostly rose on Wednesday.

Nikkei 225 28,813.43 (+1.3%)
Shanghai Composite 3,627.38 (+0.9%)
Hang Seng 23955.10 (-0.1%)

Evaluation

EUR/USD is trading at 1.1291. When the US markets closed on Tuesday, the currency pair was still moving at 1.1267 and at the close of the European markets there was still a position of 1.1247 on the plates.

USD/JPY 113.53
EUR / USD EUR 1,1291
EUR/JPY Yen 128,19

Macro schedule:
00:50 Economic Growth – Final Third Quarter. (yap)
12:00 SME Confidence – November (US)
13:00 Mortgage Applications – Weekly (US)
16:00 Vacancies – October (USA)
16:30 Oil Inventories – Weekly (US)

Company news:
13:00 Campbell’s Soup – First Quarter Numbers (US)
22:00 GameStop – US Third Quarter Numbers

Pron: ABM Financial News

From Beursplein 5, Editors 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.