European stock markets open higher beursduivel.be

(APMF IN-DOW JONES) European stock markets are set to open higher on Wednesday, following sharp declines on Tuesday and dovish words from Federal Reserve Chair Jerome Powell.

IG Markets expects an opening gain of 39 points for the German DAX index, in addition to 49 points for the French CAC 40 index and a rise of 29 points for the British FTSE 100 index.

European stock markets closed lower on Tuesday, following losses on Wall Street on Monday.

“Lower expectations for US interest rates and tensions in the Middle East are pushing prices lower,” IG analysts said. Many investors expect the Fed to keep interest rates high for longer than previously expected.

The mood in the stock market improved briefly after European Central Bank President Christine Lagarde confirmed that the central bank may cut interest rates soon unless there is a big surprise. Lagarde warned that in this context, people are paying very close attention to oil prices.

Now the first quarterly figures are being received somewhat nervously in America, given the decline in prices. Many companies look cautiously to the remainder of the year.

However, Bank of America expects S&P companies' quarterly earnings to exceed expectations. The average bank expects earnings growth of 7 percent, while the average analyst expects growth of 3 percent.

Quarterly earnings season also begins in Europe this month. Analysts expect profits to decline by 14 percent. We last saw such weak numbers in 2020, but in the fourth quarter of last year profits also fell by 9 percent.

According to JP Morgan, now is a better time to buy European bank stocks than American banks, which are 34 percent more expensive, based on expected profits.

There was economic news on Tuesday related to US industry, which is growing at a steady pace. The International Monetary Fund revised its growth forecasts for the US economy sharply upward this year. Economists expect the US economy to slow next year. In Europe, it is the opposite: growth this year is limited, but is expected to rebound next year.

Company news

ArcelorMittal shares lost 6.9 percent. Deutsche Bank removed the stock from its buy list and lowered its price target from €31.00 to €29.00.

Beiersdorf, known for its Nivea brand, was above market expectations with its first-quarter results, although growth in the United States was weak. According to the company, things are going better in Europe and growth is expected again in the top sector in China. The stock closed up 1.1 percent.

Evonik performed better than expected in the first quarter thanks to specialty additives, nutrition and care, despite the challenging environment. The company still expects adjusted EBITDA of €1.7-2.0 billion in 2024 and turnover of €15-17 billion. Evonik shares closed up 0.7 percent.

doctor. Martins said CEO Kenny Wilson intends to resign and warned of a challenging year. On Tuesday, the price fell by 29 percent in London.

Recruitment firm Robert Half and fellow UK sector firm Hayes both reported a decline in overall results for the first quarter. In Robert Half, the decrease was 16 percent, and in Hays, it was 14 percent. Robert Half shares closed down 1.6 percent. Hayes lost 4.3 percent. The Randstad was also under pressure in Amsterdam.

ASML heavyweight results will follow on Wednesday. Eyes are focused on the flow of demand. The stock closed slightly higher in Amsterdam on Tuesday.

Euro Stoxx 50 4,916.99 (-1.35%)
STOXX Europe 600 498.21 (-1.53%)
DAX 17,766.23 (-1.44%)
CAC 40 7,932.61 (-1.40%)
FTSE 100 7,820.36 (-1.82%)
SMI 11,196.67 (-1.75%)
IEX 874.67 (-1.06%)
Bill 20 3,798.70 (-1.39%)
FTSE MIB 33,393.85 (-1.65%)
IBEX 35 10,526.90 (-1.50%)

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

US stock markets closed on Tuesday divided after Fed Chairman Powell's comments and mixed corporate news.

Prices flip-flopped between gains and losses after Chairman Jerome Powell responded to the latest disappointing inflation numbers and said what everyone already knew: that the chance of an early interest rate cut has decreased rather than increased due to stagnant inflation numbers.

Heavyweight UnitedHealth provided support.

Wall Street fell on Monday due to escalating geopolitical tensions. A major drone and missile attack by Iran on Israel over the weekend caused a small number of casualties, but Israel has vowed to respond, and it is uncertain whether this will lead to further escalation.

Recent strong macroeconomic data has pushed interest rates higher. Ten-year government bonds rose to 4.65 percent, the highest level since November.

ING Investment Director Simon Wiersma expects a lot of speculation about the Fed's interest rate policy until April 26, when PCE inflation is announced. “It's now a competition to see who expects the fewest cuts.” Three months ago, the market was still counting roughly seven rate cuts in 2024. Now there are fewer than two. “Things can change,” Wiersma said.

There was economic news on Tuesday related to US industry, which is growing at a steady pace. The International Monetary Fund revised its growth forecasts for the US economy sharply upward this year. Economists expect the US economy to slow next year. In Europe, it is the opposite: growth this year is limited, but is expected to rebound next year.

Furthermore, the number of homes under construction in the United States fell sharply in March, by 15%, while the number of building permits fell by 4% compared to the previous month.

The price of a barrel of West Texas Intermediate crude oil settled around $85, as oil traders wait to see if escalation in the Middle East will continue after Iran responded to an Israeli attack on an Iranian general in Syria with hundreds of missiles and drones, causing few civilian casualties. Israel.

Company news

UnitedHealth Group shares rose 5% despite recording a quarterly loss after a cyber attack on its payment system, Change Healthcare. The company is currently maintaining its forecast for this year. The hack led to a financial crisis throughout the US healthcare sector.

Johnson & Johnson's stock fell 2% after quarterly results, despite higher results and a slightly tougher outlook. The company now expects revenue growth of 5.5 to 6.0 percent and an 8 percent increase in earnings per share from $10.57 to $10.72.

Morgan Stanley shares gained 2.5 percent after increasing its profits in the first quarter thanks to the growth in assets under management to $7 trillion. Revenues rose to $15.1 billion, while a slight decline to $14.4 billion was expected. Net income of $2.02 per share was above expectations of $1.66, according to FactSet.

Bank of America actually lost 3.5 percent after earnings fell less than expected, to $0.83 per share, from $0.94 a year earlier, when analysts had expected $0.76.

Live Nation stock fell 7.5 percent after the Wall Street Journal reported that the Justice Department is filing a lawsuit against Ticketmaster's parent company for allegedly abusing its dominant position in selling tickets to live events.

Trump Media and Technology Group shares fell strongly for the second day in a row, losing 14 percent, after an 18 percent decline on Monday. Truth Social's parent company has filed to sell a large number of shares.

Tesla will reduce its workforce by more than 10 percent, according to a report filed with the SEC on Tuesday. There have been rumors about this in recent days. The reorganization is supposed to make Tesla more efficient and ready for the next phase of growth. The stock fell 2.7 percent.

S&P 500 5,051.41 (-0.21%)
Dow Jones 37,798.97 (+0.17%)
Nasdaq Composite 15,865.25 (-0.12%)

Asia

Asian stock markets were divided on Wednesday.

Nikkei 225 38,344.98 (-0.3%)
Shanghai Composite 3,044.26 (+1.2%)
Hang Seng 16,238.09 (-0.1%)

Currencies

The euro/dollar was trading at 1.0623. When US stock exchanges closed on Tuesday, the currency pair was still trading at 1.0618 and when European stock exchanges closed it was at 1.0637.

USD/JPY 154.62 yen

EUR/USD EUR 1.0623

EUR/JPY 164.26

Overall agenda:
00:50 Trade Balance – March (Japan)
08:00 Consumer and Producer Prices – March (UK)
11:00 Inflation – March (in Euro)
1:00 PM Mortgage Applications – Weekly (US)
4:30 PM Oil Inventories – Weekly (US)
8:00 PM Federal Reserve – Beige Book (US)

Company News:
1:00 PM Abbott Laboratories – Q1 numbers (US)
22:00 Alcoa – Q1 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.