European stock markets are expected to open higher

(APMF IN-DOW JONES) European stock markets are heading for a higher open on Wednesday.

IG expects an opening gain of 98 points for the German DAX, as well as 45 points for the French CAC 40 and a rise of 50 points for the British FTSE 100.

European stock markets closed lower on Tuesday, following concerns about the US economy’s resilience on a news-free day.

These concerns follow the weak May US manufacturing PMI released on Monday.

Company news

According to Jefferies, BHP is interested in the Moranbah and Grosvenor mines of Anglo American, which has rejected a takeover bid from BHP three times and opted to reorganize itself. Analysts believe Glencore may also be interested. BHP shares closed down 1.9 percent, Anglo American shares lost 4.0 percent, and Glencore shares lost 2.7 percent.

Shipowner AP Møller-Mærsk is counting on much higher profits this financial year thanks to strong demand for containers, which is driving prices higher: an EBITDA result of $7 billion to $9 billion, instead of the previous signal of $4 billion. To 6 billion dollars. The company also expects positive free cash flow. In addition to rising demand for containers, the company also points to stagnation in Asian and Middle Eastern ports. The price dropped a little.

British American Tobacco maintained its 2024 guidance in a trading update. The stock lost 0.5 percent.

In Frankfurt, Rheinmetall Defense Industries shares lost 3.4 percent. Even Siemens Energy lost 5.7 percent. Siemens Healthineers advanced 2.4%.

Automaker Stellantis saw its US sales improve in May, even as inventories remained high. UBS sees the negative trend reversing. The price fell 1.1 percent.

Carnival rose 7.3 percent in London. The cruise ship industry has received some good news recently with a strong season in the months after Christmas as fuel becomes cheaper.

Euro Stoxx 50 4,953.37 (-1.00%)
STOXX Europe 600 517.05 (-0.54%)
DAX 18,417.54 (-1.02%)
CAC 40 7,937.90 (-0.75%)
FTSE 100 8,232.04 (-0.37%)
SMI 12,015.12 (+0.07%)
IEX 901.68 (-0.38%)
Bill 20 3,917.30 (-0.53%)
FTSE MIB 34,276.02 (-1.14%)
IBEX 35 11,286.40 (+-0.97%)

US stocks

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

US stock markets closed higher on Tuesday evening, after initial losses, supported by artificial intelligence giant Nvidia, which returned to rise after previous records.

Wall Street closed Monday mostly higher after new purchasing managers’ indexes showed U.S. manufacturing contracted further in May. “The report reduced optimism about the state of the US economy,” Deutsche Bank said. “Investors have raised their expectations for another rate cut this year.”

Markets do not expect a rate cut by the Fed next week, nor in July. However, the chance of a rate cut in September increased from 56 to 60 percent after the weak PMI numbers.

The yield on ten-year US government bonds fell.

JP Morgan experts now see little upside potential for markets during the summer. “U.S. inflation could remain high even as growth slows, which is not a great combination.”

On a macroeconomic level, the number of job vacancies appears to have decreased to 8.1 million in April, compared to 8.4 million. Scope Markets has already described the numbers as less significant than the jobs report that will be published on Friday. The decline in job openings, combined with Friday’s jobs report, may indicate a slowing economy.

The price of oil fell further. “Weak prices point to doubts about whether OPEC+ can phase out voluntary production cuts without creating excess supply,” Commerzbank analysts wrote. According to the German Bank, “OPEC+ appears to be counting on a significant recovery in demand for oil.”

Company news

Tesla shares closed down 0.9 percent. The automaker sold more cars in China in May, driven by higher demand for electric vehicles thanks to government trade programs and interest in the Beijing Auto Show. Tesla sold 72,573 cars produced in China, up 17 percent from the previous year, but 6.5 percent lower than in April.

Intel CEO Pat Gelsinger provided more details at the Computex trade show in Taiwan about Intel’s new AI chips, including one codenamed Lunar Lake, which are expected to be delivered to PC makers in the third quarter. The CEOs of Nvidia, Advanced Micro Devices, Qualcomm and Arm Holdings were also in Taipei to provide updates on their enhanced AI chips for data centers and computer applications.

Intel was largely on the sidelines during the AI ​​hype that pushed Nvidia and AMD to new heights, while tech giants like Meta, Microsoft and Google bought up as many Nvidia chips as they could. Nvidia shares rose 1.25 percent and AMD shares lost 2.2 percent on Tuesday. Intel closed down 0.9 percent.

Software company GitLab reported strong revenue growth last quarter and raised its forecasts, but losses have actually increased. The stock fell 4.9 percent.

S&P 500 5,291.34 (+0.15%)
Dow Jones 38,711.29 (+0.36%)
Nasdaq Composite 16,857.05 (+0.17%)

Asia

Asian stock markets were divided on Wednesday. Numbers from. S&P Global showed growth in the Chinese and Japanese services sectors.

Nikkei 225 38,421.24 (-1.1%)
Shanghai Composite 3,079.92 (-0.4%)
Hang Seng 18,505.56 (+0.3%)

Currencies

The euro/dollar was trading at 1.0879. When the US stock exchanges closed on Tuesday, the currency pair was still at 1.0880 and when the European stock exchanges closed there was still a XXX position on the boards.

USD/JPY 155.61 yen
EUR/USD EUR 1.0879
EUR/JPY 169.32

Overall agenda:
01:30 PMI Services – May Final. (Yap)
03:45 Caixin PMI Services – Mei (Chi)
09:15 PMI Services – May Final. (Spa)
09:45 PMI Services – May Final. (ETA)
09:50 PMI Services – May Final. (fra)
09:55 PMI Services – May Final. (gold)
10:00 PMI Services – May Final. (euro)
10:30 PMI Services – May Final. (United kingdom)
11:00 Producer Prices – April (in Euro)
1:00 PM Mortgage Applications – Weekly (US)
14:15 ADP Jobs Report – May (US)
15:45 PMI Services – May Final. (United States of America)
4:00 PM ISM Services PMI – May (US)
4:30 PM Oil Inventories – Weekly (US)

Company News:
1:00 PM Campbell’s Soup – Q3 numbers (US)

Source: ABM Financial News

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