(ABM FN-Dow Jones) European stock markets will open lower on Thursday, in anticipation of an avalanche of corporate figures and inflation figures in the US and Europe.
IG forecasts an opening loss of 80 points for the German DAX, a minus of 20 points for the French CAC 40 and a decline of 26 points for the British FTSE 100.
European stock markets closed lower on Wednesday as investors digested a series of economic and quarterly figures.
The combination of quarterly figures and macroeconomic data provides a volatile mix for the coming period. Investors will then also have to deal with the American elections next week and the Fed’s subsequent interest rate decision, said investment specialist Kevin Verstraete of Lynx.
On a macroeconomic level, it was announced that the eurozone economy grew faster in the third quarter than initially thought. GDP rose by 0.4 and 0.9 percent respectively on a quarterly and annual basis. And consumer confidence in the eurozone also improved slightly in October.
The German economy grew unexpectedly by 0.2 percent quarter on quarter in the third quarter, while the French economy grew by 0.4 percent quarter on quarter in the third quarter, thanks to the Olympic Games in Paris.
The number of unemployed people in Germany increased by 19,000 people in October, bringing the unemployment rate to 6.1 percent, which was the same as the previous month.
German consumer prices rose by 2.0 percent year on year in October, compared to 1.6 percent a month earlier.
Company news
Volkswagen wants to implement cost savings, given the challenging car market and after profits fell sharply in the third quarter. The share nevertheless closed 1.1 percent higher.
UBS saw profits rise faster than expected in the third quarter, partly helped by the investment bank and asset management arm. The Swiss bank’s share fell by 4.5 percent.
Puig Brands shares shot up 9.6 percent after the Spanish fashion house, known for brands such as Jean Paul Gaultier and Nina Ricci, exceeded revenue expectations in the third quarter.
GSK saw profits pick up in the past quarter, partly thanks to HIV and cancer treatments, but sales fell somewhat due to weaker demand for vaccines from the US. The share lost 3.1 percent.
Glencore maintained its full-year outlook after the strongest quarter this year. Although copper production was 2 percent lower on an annual basis, it was 8.8 percent higher on a quarterly basis. The share rose by 1.6 percent.
BASF has had a weak third quarter and warned that it is likely to end up at the lower end of its 2024 outlook. BASF targets an EBITDA before exceptional items between 8.0 billion and 8.6 billion euros for 2024. BASF shares fell by 1.7 percent.
Deutsche Post also issued a profit warning this afternoon. This resulted in a price loss of 1.3 percent.
Euro STOXX 50 4,885.75 (-1.3%)
STOXX Europe 600 511,51 (-1,3%)
DAX 19.257,34 (-1,1%)
CAC 40 7.428,36 (-1,1%)
FTSE 100 8.159,63 (-0,7%)
SMI 11.967,70 (-1,1%)
AEX 881.27 (-1.5%)
BEL 20 4.229,83 (-1,3%)
FTSE MIB 34.502,70 (-1,2%)
IBEX 35 11.715,00 (-0,7%)
US STOCKS
Wall Street opens lower on Thursday, according to US futures.
US stock markets closed lower on Wednesday, with investors dealing with a wave of macro data and quarterly figures.
According to market watchers, the macro data showed that American consumers are keeping their feet on the gas. ING economist James Knightley said he continues to expect a soft landing for the US economy, “with growth set to slow to around 1.5 percent in 2025 as a cooling labor market takes some steam out of the economy,” he said.
The US ten-year yield was stable at 4.283 percent, while the two-year yield rose 4 basis points to 4.168 percent.
On a macroeconomic level, it was announced that private sector employment in the US increased by 233,000 jobs in October, while the market expected a growth of 113,000 jobs.
Inflation in the US fell in the third quarter. The price index for personal consumption expenditure, or PCE for short, rose by 1.5 percent in the third quarter, compared to an increase of 2.5 percent in the second quarter.
The American economy grew by 2.8 percent in the third quarter. Although economists had previously taken into account a growth of 3.1 percent, “late [het rapport] see the economy being more resilient than we expected,” said analyst Ryan Jacobs of Jacobs Investment Management.
According to him, concerns about inflation are likely to remain on the table for some time, given the increase in imports and robust consumer spending. “I think inflation is going to be a problem,” he said, adding that if there is further economic slowdown, “it will probably be in the fourth quarter.”
The number of mortgage applications in the US fell by 0.1 percent last week. The market index fell from 214.8 to 214.5.
Pending home sales in the United States increased in September. The sales index rose by 7.4 percent, after a plus of 0.6 percent was measured in August.
December crude oil futures closed $1.40, or 2.1 percent, higher at $68.61 on the New York Mercantile Exchange on Wednesday. The latest data from the US energy agency EIA showed on Wednesday that US crude oil inventories fell last week.
On a macroeconomic level, four publications are scheduled for Thursday in the US. The weekly support applications, personal expenditure and income, the PCE price index and labor costs will be published before the stock market opens. The Chicago purchasing managers index will follow later in the day.
Company news
Meta rose 1.8 percent in after-hours electronic trading. Although Facebook’s moderation business performed better than expected last quarter, the company warned of rising infrastructure costs next year.
Microsoft rose 0.7 percent after hours. The American software company achieved more turnover and profit than expected in the past quarter.
DoorDash has seen double-digit revenue growth in the third quarter of 2024 and posted more profit than expected. The American meal delivery company fell by 0.6 percent in after-hours trading.
Starbucks lost 0.5 percent after hours, after the coffee chain confirmed the disappointing preliminary figures from a week earlier with final figures. “It is clear that we need to fundamentally change our strategy to win back customers,” CEO Brian Niccol said.
Advanced Micro Devices lost 10.6 percent after the chip manufacturer issued a slightly disappointing forecast for the coming quarter.
Alphabet rose 2.9 percent after strong revenue and profit figures, thanks to cloud growth.
Chipotle Mexican Grill achieved 13 percent more turnover, but that proved insufficient and the share lost 7.8 percent.
First Solar lost 1.1 percent after disappointing quarterly figures and a reduction in profit expectations.
Snap rose 15.6 percent after declining, while the social media app added many subscribers.
Eli Lilly posted lower profits and lowered its outlook. The stock fell 6.3 percent.
Kraft Heinz became more gloomy about expectations after slightly disappointing sales figures. The retail branch in the US will take longer to recover, according to the ketchup giant. The share was 3.1 percent lower.
Caterpillar was 2.1 percent lower after disappointing results due to weakness in the construction and raw materials industries.
The share price of Super Micro Computer plummeted by 32.7 percent after Ernst & Young resigned because the accountant no longer has confidence in the management, based on recently received information. Hindenburg Research already accused the company of tampering with the figures at the end of August.
S&P 500 index 5.813,67 (-0,3%)
Dow Jones index 42.141,54 (-0,2%)
Nasdaq Composite 18.607,93 (-0,6%)
ASIA
The Asian stock markets were divided on Thursday.
Nikkei 225 38.942,64 (-0,9%)
Shanghai Composite 3.278,04 (+0,4%)
Hang Seng 20,476.42 (+0.5%)
VALUE
The euro/dollar traded at 1.0851. When the American stock exchanges closed on Wednesday, the currency pair was still at 1.0863 and when the European stock exchanges closed, the value was still 1.0862.
USD/JPY Yen 152,82
EUR/USD Euro 1,0851
EUR/JPY Yen 165.84
MACRO-AGENDA:
03:30 Purchasing manager indices industry and services – October (Chi)
06:00 Bank of Japan – Interest rate decision (Jap)
06:30 Inflation – October vlpg (NL)
08:00 Retail Sales – September (Germany)
08:45 Inflation – October vlpg (Fra)
11:00 Inflation – October vlpg (eur)
11:00 Unemployment – September (eur)
1:30 PM Aid Applications – Weekly (US)
1:30 PM Personal Spending and PCE – September (US)
1:30 PM Labor Costs – Third Quarter (US)
14:45 Purchasing Managers Index Chicago – October (US)
COMPANY NEWS:
07:00 AB InBev – Third quarter figures (Call)
07:00 BNP Paribas – Third quarter figures (Fra)
07:00 Moeller-Maersk – Third quarter figures (Dee)
07:00 Société Générale – Third quarter figures (Fra)
07:00 TotalEnergies – Third quarter figures (Fra)
12:00 Comcast – Third quarter figures (US)
12:00 ConocoPhillips – Third quarter figures (US)
12:00 Mastercard – Third quarter figures (US)
12:00 Merck – Third quarter figures (US)
12:00 Nikola – Third quarter figures (US)
9:00 PM Amazon – Third quarter figures (US)
21:00 Intel – Third quarter figures (US)
21:30 Apple – Fourth quarter figures (US)
Source: ABM Financial News ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms as well as for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
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European Stock Markets: A Rollercoaster of Figures!
Ah, the delightful world of finance! Where numbers dance and the economy pirouettes like a slightly confused ballet dancer at the end of a bottle of red. European stock markets are bracing for a chilly plunge today – because what’s life without a little uncertainty, right? It’s all rather dramatic; think of it like a soap opera, but without the happy endings or three-hanky sad bits!
The Forecast: A Bit Gloomy!
Well, folks, hold onto your portfolios! The IG forecasts an opening loss of 80 points for the German DAX, a minus of 20 for the French CAC 40, and a decline of 26 points for the British FTSE 100. Sounds like a party we’re all invited to, eh? Investors have clearly been on a diet lately, munching on corporate and inflation figures like they were some sort of fancy tapas – and no, they’re not impressed with the selection!
The Economic Buffet: A Mixed Plate!
Now, let’s chew on the deliciously mixed platter of economic growth! The eurozone economy managed to grow faster in the third quarter than expected. It grew by 0.4 percent quarterly and 0.9 percent yearly. In German terms, that’s practically a beer-filled jubilation, but don’t forget to wash it down with some skepticism – 19,000 more unemployed folks are joining the cabaret in October, bringing the rate to 6.1 percent. If only we could all just retire and become TikTok influencers!
Corporate Shenanigans: Who’s Winning?
Volkswagen is feeling the heat, implementing cost savings quicker than you can say “Das Auto!” after a steep fall in profits. Oddly enough, shares closed up 1.1 percent. What’s that, you ask? Are we doing finance or magic tricks here? Meanwhile, UBS is singing a different tune, as profits rise but shares fall—down 4.5 percent. Might be time for a pep talk from the company’s life coach!
On the other hand, Puig Brands is basically throwing a victory parade, with share prices soaring by 9.6 percent thanks to exceeding revenue expectations. Meanwhile, BASF is serving up a sob story, with shares dropping 1.7 percent after a weak third quarter. Someone get them a bucket of ice cream!
Across the Pond: The American Shenanigans!
And what’s happening stateside? Wall Street’s having a bit of a frown as well, with futures indicating a lower open. Consumers are still throwing cash around like confetti—233,000 new jobs were added in October. Who knew the economy was playing Santa early? But let’s not be too merry; inflation concerns are lurking like that one relative who always brings up politics at family dinners.
Final Thoughts: Buckle Up!
So there you have it. European stock markets are about to tumble, the corporate landscape is a comedic mix of triumph and despair, and across the water, the US is balancing between job growth and inflationary anxiety. If this were a movie, the audience would be clenching their seats, popcorn flying everywhere! Stay tuned folks, tomorrow’s headline might just read: “Investors Claim They’ve Seen It All!” Just remember, in the stock market, today’s losses can be tomorrow’s gains… or the start of a comedy special!
And if you thought all of that was riveting, well, just wait until the next round of figures come tumbling in. Until then, keep those emotions (and portfolios) in check!
(ABM FN-Dow Jones) European stock markets are projected to open lower on Thursday as traders brace themselves for a significant influx of corporate earnings reports and inflation data arriving from both the US and Europe. This heightened anticipation comes amid concerns about the overall economic climate.
IG forecasts an opening loss of 80 points for the German DAX, indicating a negative shift as investors react to unfolding economic indicators. In addition, a decline of 20 points is anticipated for the French CAC 40, while the British FTSE 100 is expected to drop by 26 points, reflecting a broader trend of investor caution.
European stock markets concluded Wednesday’s trading session with losses as investors sifted through a barrage of macroeconomic data and quarterly earnings reports that raised concerns about future growth.
The combination of quarterly corporate results and macroeconomic data is creating a volatile environment for investors in the coming days. Additionally, they will need to navigate the impact of next week’s American elections and the Federal Reserve’s impending interest rate decision, according to investment specialist Kevin Verstraete from Lynx.
On a macroeconomic level, it was announced that the eurozone economy recorded stronger-than-anticipated growth in the third quarter. Specifically, GDP saw an increase of 0.4 percent quarter-on-quarter and 0.9 percent year-on-year, suggesting resilience in the region’s economic performance. Furthermore, consumer confidence in the eurozone also exhibited a slight improvement in October, hinting at potential stability in spending and investment.
The German economy grew unexpectedly by 0.2 percent quarter-on-quarter in the third quarter, challenging previous expectations. Notably, the French economy also expanded by 0.4 percent quarter-on-quarter during the same period, largely bolstered by the upcoming Olympic Games in Paris which are expected to stimulate local economic activity.
German consumer prices increased by 2.0 percent year-on-year in October, reflecting rising inflationary pressures compared to a previous increase of 1.6 percent the month before, raising concerns about cost-of-living challenges.
Company news
Volkswagen is looking to implement cost-saving measures due to the increasingly competitive and challenging landscape of the automotive market, particularly after seeing substantial profit declines in the third quarter. Despite these challenges, the company’s share managed to close 1.1 percent higher, indicating some investor optimism.
UBS experienced a surprising rise in profits that exceeded expectations for the third quarter, thanks to robust performances from its investment banking and asset management divisions. However, the bank’s share fell by 4.5 percent as investors reacted to the potential long-term implications of the report.
Puig Brands saw its shares jump by an impressive 9.6 percent after the Spanish fashion house, renowned for names like Jean Paul Gaultier and Nina Ricci, surpassed revenue expectations for the third quarter, showcasing strong market demand.
GSK reported a rise in profits for the past quarter, significantly driven by its advancements in HIV and cancer treatments, but noted a slight decrease in overall sales due to declining demand for vaccines in the US. As a result, the company’s share price dropped by 3.1 percent, reflecting investor caution.
Glencore maintained its full-year outlook after achieving its strongest quarter so far this year. Although its copper production registered a 2 percent decrease year-on-year, it increased by 8.8 percent on a quarterly basis, leading to a 1.6 percent rise in the company’s share price.
Deutsche Post issued a profit warning this afternoon, prompting a 1.3 percent loss in its share value as investors reacted to the negative outlook.
Euro STOXX 50 4,885.75 (-1.3%)
STOXX Europe 600 511.51 (-1,3%)
DAX 19,257.34 (-1,1%)
CAC 40 7,428.36 (-1,1%)
FTSE 100 8,159.63 (-0,7%)
SMI 11,967.70 (-1,1%)
AEX 881.27 (-1.5%)
BEL 20 4,229.83 (-1,3%)
FTSE MIB 34,502.70 (-1,2%)
IBEX 35 11,715.00 (-0,7%)
US stock markets finished lower on Wednesday as investors contended with a fresh wave of macroeconomic data and quarterly earnings reports that sparked concerns over economic stability.
According to market watchers, macro data indicated that American consumers are maintaining a strong level of spending. ING economist James Knightley expressed optimism about a soft landing for the US economy, projecting that growth could slow to around 1.5 percent in 2025 due to a cooling labor market.
On the macroeconomic front, private sector employment in the US increased by an impressive 233,000 jobs in October, significantly outpacing market expectations which pegged job growth at only 113,000.
In September, pending home sales in the United States recorded a notable increase, with the sales index climbing by 7.4 percent, building on an already positive trend that saw a 0.6 percent rise in August.
December crude oil futures climbed $1.40, or 2.1 percent, closing at $68.61 on the New York Mercantile Exchange on Wednesday, reacting to recent data which indicated a decline in US crude oil inventories.
Company news
Meta’s stock rose by 1.8 percent in after-hours electronic trading as the social media giant announced that Facebook’s moderation business exceeded expectations last quarter, though it also cautioned investors about increased infrastructure costs anticipated for the following year.
Microsoft shares gained 0.7 percent after-hours, backed by robust earnings that surpassed forecasts, signaling solid demand for its product offerings.
DoorDash reported impressive double-digit revenue growth in the third quarter of 2024, along with higher-than-anticipated profits. However, the stock dipped by 0.6 percent in after-hours trading as investors digested the latest earnings reports.
Advanced Micro Devices faced a sharp decline of 10.6 percent after the chip manufacturer provided a somewhat disappointing outlook for the upcoming quarter, raising concerns among investors.
S&P 500 index 5,813.67 (-0,3%)
Dow Jones index 42,141.54 (-0,2%)
Nasdaq Composite 18,607.93 (-0,6%)
The Asian stock markets displayed a mixed performance on Thursday, reflecting ongoing uncertainties in the global economic landscape.
Nikkei 225 38,942.64 (-0,9%)
Shanghai Composite 3,278.04 (+0,4%)
Hang Seng 20,476.42 (+0.5%)
VALUE
The euro/dollar traded at 1.0851, showing slight fluctuations from the previous day. When the American stock exchanges closed on Wednesday, the currency pair was at 1.0863, while the European stock exchanges closed at 1.0862.
MACRO-AGENDA:
03:30 Purchasing manager indices industry and services – October (Chi)
06:00 Bank of Japan – Interest rate decision (Jap)
06:30 Inflation – October vlpg (NL)
08:00 Retail Sales – September (Germany)
08:45 Inflation – October vlpg (Fra)
11:00 Inflation – October vlpg (eur)
1:30 PM Aid Applications – Weekly (US)
1:30 PM Personal Spending and PCE – September (US)
1:30 PM Labor Costs – Third Quarter (US)
14:45 Purchasing Managers Index Chicago – October (US)
COMPANY NEWS:
07:00 AB InBev – Third quarter figures (Call)
07:00 BNP Paribas – Third quarter figures (Fra)
07:00 Moeller-Maersk – Third quarter figures (Dee)
07:00 Société Générale – Third quarter figures (Fra)
07:00 TotalEnergies – Third quarter figures (Fra)
12:00 Comcast – Third quarter figures (US)
12:00 ConocoPhillips – Third quarter figures (US)
12:00 Mastercard – Third quarter figures (US)
12:00 Merck – Third quarter figures (US)
12:00 Nikola – Third quarter figures (US)
9:00 PM Amazon – Third quarter figures (US)
21:00 Intel – Third quarter figures (US)
21:30 Apple – Fourth quarter figures (US)
Source: ABM Financial News ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms as well as for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
Market Overview: A Rollercoaster Ride!
As we enter a new trading day, the European stock markets are set for a lower opening, signaling a cautious sentiment among investors reacting to the latest batch of corporate earnings and inflation data both from Europe and the US.
From across the pond, Wall Street is also under pressure, with futures pointing to a downtrend. Despite the optimistic job growth—233,000 positions added in October—not everything is as cheerful. Inflationary concerns loom large, casting a shadow over the consumer spending that seems to flow like a river of confetti.
Corporate Earnings: A Mixed Bag
In the corporate arena, notable reports are shaping investor confidence. Volkswagen faces a tough road ahead, implementing cost-saving measures after a significant decline in profits in the previous quarter, yet its shares managed a slight uptick thanks to some optimism from investors.
On the flip side, UBS’s surprising profitability was overshadowed by a significant drop in share price as investors digested the long-term ramifications of its earnings. Meanwhile, Puig Brands shined bright with a surge in stock after outperforming revenue expectations, and GSK’s shares fell due to cautious investor sentiment despite rising profits from its innovative treatments.
Glencore’s stock received a positive nudge as the company maintained its full-year outlook, while Deutsche Post’s profit warning led to a decline in its share value, reflecting the challenges many companies face amid economic uncertainties.
The Macroeconomic Landscape: A Closer Look
On a macro level, the eurozone demonstrated unexpected resilience, with a GDP increase of 0.4 percent quarter-on-quarter. The situation is further complicated by rising inflationary pressures in Germany, where consumer prices rose by 2.0 percent year-on-year, raising eyebrows about the cost of living.
Over in the US, despite the positive job market data, concerns about economic stability were palpable, driving stock indices lower. Notably, private sector employment exceeded expectations, but the sentiment remains tied closely to inflation fears and ongoing market volatility.
Looking Ahead: Volatility and Caution
As traders prepare for a day of potential turbulence, the combination of anticipated corporate earnings and macroeconomic indicators will be crucial in determining market movements. Investors are reminded of the delicate balance between job growth and inflation. With significant events like next week’s American elections and the Federal Reserve’s looming interest rate decision on the horizon, one thing is clear: buckle up, as this financial rollercoaster ride continues!
Stay vigilant as the numbers roll in, and remember, today’s market fluctuations could lead to tomorrow’s unexpected outcomes. It’s not just about keeping those emotions in check but also about staying ahead of the curve amid economic uncertainties!
Indices Finish Lower: Key Figures
- Euro STOXX 50: 4,885.75 (-1.3%)
- FTSE 100: 8,159.63 (-0.7%)
- DAX: 19,257.34 (-1.1%)
- CAC 40: 7,428.36 (-1.1%)
- Nikkei 225: 38,942.64 (-0.9%)
- Hang Seng: 20,476.42 (+0.5%)
Keep those portfolios diversified, and happy trading!
