European stock markets open higher | beursduivel.be

(APMFN-Dow Jones) European stock markets are heading for a higher opening on Wednesday.

IG expects an opening gain of 61 points for the German DAX, 39 points for the French CAC 40 and a 34 point rise for the UK FTSE 100.

European stock markets closed lower on Tuesday, after a quiet trading day in the run-up to U.S. Independence Day, which will keep Wall Street closed on Thursday.

European stock markets closed higher on Monday, relieved that neither the left nor the far right won a major victory in the first round of France’s election. Market experts expect Marine Le Pen’s party, which won the first round, to fall short of an absolute majority in the second round on Sunday.

The sentiment on Tuesday was one of wait and see. In the afternoon, the number of job openings in the United States appeared to have risen in May, but the level was not higher than expected as the April figure was revised down.

In the morning, eurozone inflation appeared to have fallen as expected to 2.5 percent in June from 2.6 percent in May. Core inflation, a key measure for the European Central Bank, was at 2.9 percent, compared with the market’s forecast of 2.8 percent. Service prices continued to rise sharply, with inflation at 4.1 percent.

It was striking that consumer prices in the Netherlands rose faster, at 3.2 percent. In May this was still 2.7 percent.

“The ECB already looks unlikely to cut interest rates in July, and June inflation data will reinforce policymakers’ bias towards a very cautious approach,” said economists at Capital Economics.

European Central Bank President Christine Lagarde admitted that service prices continue to rise steadily due to rising wages. She added that if producer prices fall, service price inflation will not necessarily reach 2%.

Lagarde and her Federal Reserve counterpart Jerome Powell spoke at the annual meeting of central bankers in Sintra, Portugal.

Company News

Shell shares rose half a percent. Shell has halted construction of a major biofuel plant in Rotterdam due to weak demand for the fuel worldwide. Demand has fallen after a sharp drop in prices for renewable energy credits in the United States.

Ryanair reported a load factor of 95 percent in June, with passenger numbers up 11 percent. The stock fell 1.6 percent in Dublin.

Siemens Energy led Germany’s DAX with a gain of 3.8 percent. Zalando gave up earlier gains and lost 0.8 percent.

Arms maker Rheinmetall, which had risen earlier in the day, also lost 0.3 percent, as did Thales in Paris. However, MTU Aero Engines rose 3.4 percent.

European reinsurers are now under pressure as the hurricane season begins with Storm Beryl causing damage in the Caribbean. Hannover Re fell 3.4 percent and Munich Re fell 3.3 percent.

ASR Nederland shares fell 1.9 percent in Amsterdam, but NN Group shares rose 1.3 percent, after a sector report from JPMorgan removed ASR from its buy list and put NN on it.

In Paris, tire maker Michelin was the biggest loser, down more than 3 percent, followed by carmaker Stellantis and luxury carmakers Kering and L’Oreal.

AB InBev shares closed slightly higher in Brussels despite a price target cut at Deutsche Bank, which maintained its hold recommendation. Jefferies analysts were positive on the brewer and believe it will beat expectations for 2024.

UBS said British banks were at attractive valuations and looked set for a strong earnings season. Barclays and Lloyds lost more than 1 percent on Tuesday.

Euro Stoxx 50 4,906.33 (-0.48%)
STOXX Europe 600 510.91 (-0.42%)
DAX 18,164.06 (-0.69%)
CAC 40 7,538.29 (-0.30%)
FTSE 100 8,121.20 (-0.56%)
SMI 12,011.02 (-0.32%)
AEX 924.61 (+0.17%)
Bill 20 3,923.43 (+0.65%)
FTSE MIB 33,481.40 (-1.19%)
IBEX 35 10,912.80 (-1.30%)

US Stocks

Wall Street opened in the red on Wednesday, according to U.S. futures. Today is a half-day of trading, and on Thursday the U.S. is closed for the Fourth of July holiday.

U.S. stock markets closed higher on Tuesday after Federal Reserve Chairman Jerome Powell failed to commit to cutting interest rates, while the wind was blowing on Tesla.

Powell spoke Tuesday in Sintra, Portugal, during a meeting with European Central Bank President Christine Lagarde and other central bankers. Powell reiterated that the Fed has made “a lot of progress” on inflation, but still needs more confidence to cut interest rates.

Furthermore, the number of job openings in the US appears to have increased in May, but the number was not higher than expected as the April figure was revised down.

This will be followed by the important jobs report on Friday.

According to Jeffrey Roach, the US labor market is showing the first signs of a slowdown. “As long as the labor market is stable, a soft landing story seems likely because consumers will still have room to spend,” Roach said.

ING analysts attributed the strength of the dollar to the increasing likelihood of Donald Trump being elected US president in November.

Trump on Monday won a positive Supreme Court ruling on his immunity during his presidency, which could impact pending lawsuits against him over his role in the storming of the Capitol after his election loss.

“The televised debate with Biden and the Supreme Court ruling that the former president can only be prosecuted for crimes committed ‘outside the scope of his official duties’ are working in Trump’s favour,” DWS said. “Markets believe that a second Trump term will be inflationary, thus sending 10-year yields higher,” the analysts said.

Trump has already announced a 10% tariff on everything the US imports, and at least 60% on Chinese goods if he becomes president again. That could fuel inflation, making bonds less attractive.

Company News

Tesla shares closed up 10 percent, building on Monday’s more than 6 percent gain in the stock price, boosted by better-than-expected sales figures. Reuters reported on Tuesday that Tesla’s sales figures are likely to fall 6 percent in the second quarter. Sales are falling for a second straight quarter due to increased competition and disappointing demand due to a lack of affordable models. In the second quarter, Tesla delivered 438,019 vehicles, according to Reuters. That’s based on estimates from 12 analysts.

Shares of Eli Lilly and Novo Nordisk closed lower after President Joe Biden criticized the pharmaceutical giants. Biden and Sen. Bernie Sanders wrote in a commentary that the companies charge unreasonably high prices for their popular weight-loss products.

Apple shares rose about 3 percent on Monday and gained 1.6 percent on Tuesday. Citi analysts wrote that higher iPhone sales in China would be a positive driver for companies in Apple’s supply chain.

Chewy shares fell 2.2 percent. The stock surged as much as 20 percent Monday after investor Keith Gill, known as Roaring Kitty, announced a 6.6 percent stake in the pet products company, but ultimately closed more than 6 percent lower.

Shares of Norwegian Cruise Lines lost 0.4 percent. Cruise lines saw the S&P 500 fall sharply on Monday as Hurricane Beryl made landfall in the Caribbean. The storm has strengthened to a Category 5.

Paramount Global shares rose 5.7 percent after the New York Times reported that IAC, the internet and media holding company owned by Barry Diller, is exploring a takeover bid for the entertainment company. IAC is said to have signed nondisclosure agreements with National Amusements, Paramount’s majority shareholder.

S&P 500 Index 5,509.01 (+0.62%)
Dow Jones 39,331.85 (+0.41%)
Nasdaq Composite 18.X028.76 (+0.84)
Asia

Asian stock markets were in the green on Wednesday, despite purchasing managers’ figures pointing to slowing growth in China’s services sector and even contraction in Japan.

Nikki 225 40,533.14(+1.4%)
Shanghai Composite 2,985.01 (-0.4%)
Hang Seng 17,978.52 (+1.2%)

Currencies

The EUR/USD was trading at 1.0736. When US exchanges closed on Tuesday, the currency pair was still trading at 1.0746 and when European exchanges closed it was at 1.0737.

USD/JPY 161.79 Yen
EUR/USD EUR 1.0736
EUR/JPY 173.73

Overall agenda:
00:50 Tankan Index – Q2 (Japan)
01:30 Services PMI – June Final. (YAP)
03:45 Caixin Services PMI – June (Qi)
09:15 Services PMI – June Final. (Spa)
09:45 Services PMI – June Final. (ITA)
09:50 Services Purchasing Managers Index – June Final. (FRA)
09:55 Services Purchasing Managers Index – June Final. (GLD)
10:00 Services PMI – June Final. (EUR)
10:30 Services PMI – June Final. (UK)
11:00 Producer Prices – May (in Euros)
1:00 PM Mortgage Applications – Weekly (US)
14:15 ADP Jobs Report – June (US)
2:30 PM Trade Balance – May (US)
2:30 PM Help Requests – Weekly (US)
15:45 Services PMI – June Final. (USA)
4:00 PM ISM Services PMI – June (US)
4:00 PM Factory Orders (May) (US)
4:30 PM Oil Inventories – Weekly (US)
7:00 p.m. Wall Street closes early for Independence Day on Thursday
20:00 Federal Reserve – Interest Rate Decision Minutes (US)
00:00 ECB Sintra Forum (Closing)

Company News:
– There are no items on the agenda.

Source: ABM Financial News

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