European stock markets start with caution

(ABM FN) European stocks are set to face a broadly flat open on Friday ahead of the US jobs report.

IG expects an opening gain of 3 points for the German DAX, a minus of 3 points for the French CAC 40 and a drop of 5 points for the British FTSE 100.

European shares closed higher on Thursday.

Stock markets rose on Thursday amid continued optimism about the US labor market, despite the disappointing ADP jobs report on Wednesday.

“A quiet calendar in Europe is causing the market to focus on the jobs picture in the US, as the number of jobless claims is released for the first time, among other things,” IG analysts said.

The market is counting on an increase of 720,000 jobs in August by Friday afternoon, when the official report is presented. However, the ADP jobs report, which is often seen as an indicator of the quality of Friday’s report, disappointed. Paycheck processor data on Wednesday showed that employment in the US private sector rose by just 374,000 jobs in August, while the market had expected an increase of 600,000 jobs.

“As a result of the absent ADP, there are indications that Friday’s jobs report may be disappointing,” IG said.

On the macroeconomic front, it was announced in Europe on Thursday that producer prices in the euro zone rose by 2.3 percent on a monthly basis. On an annual basis, prices rose by as much as 12.1 percent.

company news

Philips has completed a divestment from its home appliances business to Hillhouse Investment. The stock gained more than 2.0 percent.

JPMorgan Cazenove on Thursday lowered its advice to Unilever from Neutral to Underweight with a price target of €44.00. Analysts’ estimates are 5 percent lower than expected earnings per share for all of 2022, due in part to an out-of-control increase in input costs, which is putting pressure on margins. Unilever also made limited investments, which will have an impact on the development of sales. Unilever Amsterdam shares fell 1.7 percent.

AB InBev has also been listed for sale by JPMorgan. The investment bank expects the biggest raw material price headwind ever for AB InBev for 2022, which continues to be an undervalued market. The bank cut its earnings per share estimate for 2022 by 6 percent. That puts the investment bank 10 per cent below the consensus. The beer giant lost about 2.5 per cent in Brussels.

In Frankfurt, Delivery Hero stock rose about 1.5 percent after a positive report from Bank of America. Lufthansa shares fell only 1.5 percent.

In Paris, Alstom was nearly 3.5 percent in red, but Pernaud Rijkaard won by nearly 0.8 percent. On Wednesday, Pernaud also won about 4 percent after publishing figures that showed the distiller had left the Corona crisis behind.

Oil stocks performed well thanks to higher oil prices. Royal Dutch Shell won 2.2 percent, as did BP.

Euro Stoxx 50 4232.10 (+0.1%)
STOXX Europe 600474.60 (+0.3%)
DAX 15.840.59 (+0.1%)
CAC 40 6763.08 (+0.1%)
FTSE 100 7,163.90 (+0.2%)
SMI 12,432.46 (0.0%)
AEX 793.32 (+0.4%)
BEL 20 4,336.61 (+0.3%)
FTSE MIB 26,233,38 (+0.2%)
IBEX 35 8.981.40 (-0.1%)

US property rights

Wall Street opens Friday in green, according to US futures, although the opening profit will be modest.

US stocks closed higher on Thursday.

Stocks rose this week as investors weighed strong corporate earnings and low interest rates against signs of a slowing economic recovery in some parts of the world.

The market is waiting for the US jobs report on Friday for more clues about when the Federal Reserve could begin to phase out its bond purchases. The central bank indicated that the recovery of the labor market plays an important role in monetary policy decisions.

“The combination of a strong recovery, very low interest rates and a significant rise in accommodative policies creates a very strong mix of risky assets,” said Bill Papadakis, economist at Lombard Odier. “When you look at the alternatives that investors can invest their money in today, stocks are often the only option to get slightly better returns,” he said.

On the macroeconomic front, on Thursday, it was announced that the number of jobless claims for the first time in the United States decreased by 14 thousand to reach 340 thousand last week, while the market expected 345 thousand applications.

The US trade deficit decreased from $73.2 billion to $70.1 billion in July.

Labor costs in the United States rose in the second quarter of 2021, but productivity rose even faster. Labor costs rose 1.3% and labor productivity increased 2.1%.

Orders from US factories rose 0.4 percent in July, after rising 1.5 percent the previous month.

Crude oil futures for October closed 2.0%, or $1.40, higher Thursday at $69.99 on the New York Mercantile Exchange.

On the macroeconomic front, two PMIs for the services sector were put on the agenda on Friday, in addition to the August jobs report.

company news

Nicholas and the Bosch Group signed a cooperation agreement. The companies announced this on Thursday without disclosing financial details. The partnership will give Nikola access to Bosch’s fuel cell module technology and manufacturing at its facility in Arizona. Nikola fell about 0.5 percent.

Irish privacy regulator DPC has imposed a €225 million fine on WhatsApp. The Facebook owner’s share lost nearly 2.0 percent.

Apple will allow media apps to create in-app links to login pages for those companies. For example, companies like Spotify and Netflix can avoid Apple taking a percentage of their subscription fee. So far, users of Spotify and similar services can only subscribe from the Apple App Store.

On Thursday, DigiTimes, citing industry sources, reported that the rollout of Apple’s new MacBook Pro may be delayed due to a lack of chips. The stock rose about 0.6 percent.

Intelsat may restructure its debt and halve its $15 billion in debt. This was determined by a judge in Virginia upon hearing about the bankruptcy of the satellite communications company.

Amazon.com will employ 55,000 people worldwide, 40,000 of them in America, for web services, studios and the Kuiper satellite project. The stock fell about 0.5 percent.

Broadcom semiconductor and software company publishes after-hours results, as does IT company Hewlett Packard Enterprise.

S&P 500 Index 4.536.95 (+0.3%)
Dow Jones 35,443.82 (+0.4%)
Nasdaq Composite 15,331.18 (+0.1%)

Asia

Asian stock markets were divided on Friday, and the gains in Japan were particularly staggering. Purchasing data from Markit showed that the Chinese and Japanese service sectors contracted in August.

Nikkei 225 29.131.30 (+2.1%)
Shanghai Composite 3.591.53 (-0.2%)
Hang Seng 25948.28 (-0.5%)

Evaluation

The EUR/USD was trading at 1.1876. When the US markets closed on Thursday, the currency pair also moved at 1.1876 and when the European markets closed there was still a position at 1.1862 on the plates.

US dollar / Japanese yen 110.03
EUR / USD EUR 1,1876
EUR/JPY Yen 130,65

Macro schedule:
00:30 Services PMI – fell in August. (yap)
03:45 PM Services PMI – August Hijri. (Che)
09:15 Services PMI – August (SBA)
09:45 Services PMI – August (Italy)
09:50 Services PMI – August without. (French)
09:55 PM Services PMI – August e. (German)
10:00 Services PMI – August rate. (euro)
10:30 Services PMI – August Final (UK)
11:00 Retail Sales – July (EUR)
11:00 Retail Sales – July (contact)
14:30 Job growth and unemployment – August (US)
15:45 Markit Services PMI – August defeat. (we)
16:00 ISM Services PMI – August (US)

Company news:
There are no items on the agenda

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.