(ABM FN) The Brussels stock exchange will have a lower opening on Wednesday. On Tuesday, the star index closed 2.0 percent lower at 4,205.50 points.
Other European stock markets also appear to be opening flat to lower, with investors being cautious in the run-up to the publication of new inflation figures in the US. This data can provide insight into the Federal Reserve’s follow-up plans.
Inflation cooled further in September to 2.4 percent on an annual basis, far below the peak of 9 percent during the corona crisis.
But the September figure also showed some price pressure in food, clothing and aviation. “The market is a bit worried about this,” said strategist Quincy Krosby of LPL Financial. If inflation does pick up again, this could mean a setback on the stock market, according to the strategist. Krosby believes that the stock market has already risen sharply in the run-up to the presidential elections.
The Asian stock markets also took a step back this morning, with the Japanese stock market in particular posting significant losses as concerns about financing costs in the country persist. The shares of car manufacturers and pharmaceutical companies were particularly under pressure. Softbank lost 3 percent, despite the fact that the quarterly profit figures were better than expected.
The Hong Kong stock market fell for the fourth day in a row, the longest losing streak in two months. A large stimulus package in China has not yet materialized, while investors remain cautious after Donald Trump’s victory in the American presidential elections.
Wall Street also took a step back on Tuesday after record levels on Monday. It is expected that American mid- and small-cap shares in particular will benefit from Donald Trump’s ‘America First’ policy. “It remains to be seen whether that will actually be the case, but many investors simply have little patience,” said Simon Wiersma of ING.
Oil prices closed slightly higher on Tuesday, after three trading days of declines. The December future for a barrel of West Texas Intermediate oil closed 0.1 percent higher at $ 68.12 on the New York Mercantile Exchange. This kept the oil price well below the $70 mark.
The previous decline was related to doubts about future oil demand. “Oil prices are under pressure due to gloomy sentiment on demand,” said Matthew Polyak of Hummingbird Capital, citing a report showing that China imported 9 percent fewer barrels of oil daily in October than a year earlier.
OPEC meanwhile lowered its expectations for oil demand in 2024 and 2025.
The euro/dollar traded at 1.0614. When the American stock exchanges closed on Tuesday, the currency pair was still trading at 1.0625 and when the European stock exchanges closed, it was still at 1.0598.
Company news
Jefferies has lowered the price target for Umicore from 16.00 to 12.00 euros, while maintaining the Hold recommendation. The analysts want more clarity from Umicore about the strategy. According to Jefferies, a turnaround in the battery materials market is still more than two years away.
Wall Street closing positions
The S&P 500 index closed 0.3 percent lower on Tuesday at 5,983.99 points, the Dow Jones index fell 0.9 percent to 43,910.98 points and the Nasdaq technology exchange lost 0.1 percent to 19,281.40 points.
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.
Community trend
Will the stock rise or fall following this news item?
Community trend
You must be logged in to perform this action. Log in or Sign up
Welcome to the Stock Exchange Circus!
Oh, what a beautiful Wednesday it is, folks! Well, it would be if we didn’t have to endure the grim news from the Brussels stock exchange. Grab your bears and rabbits because it’s a veritable zoo out there! The star index staggered to a crawl, closing down 2% at 4,205.50 points. No need for actual stars to be in this index. It’s hitched a ride on the down train!
A European Cascade of Caution
Meanwhile, across Europe, it’s a flat line as investors are more cautious than a cat at a dog show right before the US inflation figures drop. It’s like waiting for someone to hand you a dessert but knowing it might actually be a fruitcake. Inflation’s cooled to a mere 2.4%—a splendid little number, really, especially compared to the fiery 9% from the pandemic peak. But hold your horses! The price pressure on food, clothing, and aviation is making everyone slightly queasy, like eating three-day-old takeout!
Strategist Quincy Krosby sounds the alarm bells—apparently, the market is feeling a bit tense. If inflation decides to tango again, we could all be doing the Macarena on the stock market’s grave. Krosby believes the market has already done a delightful little waltz upward ahead of the presidential elections, which always have investors biting their nails like they’re auditioning for a horror movie.
The Asian Markets: Nothing Assured but Disappointment
Over in the East, Asian markets are grim as well. Japan’s stock market has taken a nosedive, with car manufacturers and pharmaceuticals feeling the heat—just like a sauna, but without the relaxation. Even Softbank lost 3% despite better-than-expected quarterly results, which is about as confusing as a vegan at a barbecue! And here’s a fun fact: the Hong Kong stock market has been sinking for four days straight. It’s like watching a bad sitcom repeat itself, but without the laughs.
Making Sense of the Oil Spill
And don’t get me started on oil prices! They ticked up slightly after three days of declines, like that over-enthusiastic friend who raises their hand in class only to realize the answer was “I don’t know.” Trading at $68.12 per barrel keeps us just below that tantalizing $70 mark—a classic date-just-out-of-reach. With China importing 9% fewer barrels, their appetite for oil is going down even faster than my chances of getting a date on a Saturday night!
What’s the Currency Doing?
Now, what about the euro against the dollar? Well, it’s like watching a tense face-off in a reality show. Currently sitting at 1.0614, the drama unfolded with fluctuations from 1.0625 to 1.0598. My money is on the euro for some overacting in the next episode!
Company News: The Heart of the Matter
In juicy corporate tidbits, Jefferies has lowered the price target for Umicore from €16.00 to €12.00. It’s a bit of a slap on the wrist, but analysts want clarity! Who knew asking for transparency in business was as rare as spotting a unicorn? Jefferies believes Umicore’s turnaround in battery materials is at least a two-year affair—like planning a wedding but forgetting to RSVP!
Wall Street’s Final Bow
As for Wall Street, it took a step back Tuesday after riding high the day before. The S&P 500 dropped 0.3%, Dow Jones went down 0.9%, and the Nasdaq lost 0.1%. If stocks were a roller coaster, it’d definitely be one of those rickety ones where you’re wondering if safety bars are just for show!
So, folks, let’s keep our eye on the market’s next act! Will it rise or fall with the publication of these scintillating new inflation figures? Only time—and perhaps a bit of divine intervention—will tell!
Until next time, keep your wallets close and your humor closer!
(ABM FN) The Brussels stock exchange is poised for a lower opening on Wednesday after experiencing a sharp decline on Tuesday, where the star index plummeted by 2.0 percent, closing at 4,205.50 points. This significant drop signals fluctuations in market sentiment as investors adjust to ongoing economic developments.
Other European stock markets are reflecting a similar trend, appearing to open flat to lower as cautious investors await crucial inflation figures from the United States. These upcoming data releases are expected to provide valuable insights into the Federal Reserve’s potential follow-up plans regarding monetary policy and interest rates.
Inflation rates showed a cooling trend, dropping further to 2.4 percent on an annual basis in September, a striking decrease from the peak of 9 percent observed during the corona crisis. However, analysts note that the latest figures also reveal some unsettling price pressures in essential sectors, including food, clothing, and aviation. Strategist Quincy Krosby of LPL Financial expresses concern, stating, “The market is a bit worried about this.” He highlights that if inflation were to surge again, it could trigger a significant setback in the stock market, especially considering the notable pre-election gains already recorded.
The Asian stock markets also took a step back this morning, with the Japanese stock market particularly experiencing significant losses amid ongoing concerns surrounding financing costs in the country. Shares of major car manufacturers and pharmaceutical companies were notably under pressure. Softbank witnessed a sharp decline, losing 3 percent, despite announcing quarterly profit figures that exceeded market expectations.
The Hong Kong stock market is facing its fourth consecutive day of declines, marking the longest losing streak in two months. Investors grow increasingly anxious as a comprehensive stimulus package in China has yet to materialize, coupled with lingering caution following Donald Trump’s victory in the American presidential elections.
Wall Street experienced a downturn on Tuesday after hitting record levels the previous day, with predictions suggesting that American mid- and small-cap shares could particularly thrive under Donald Trump’s ‘America First’ policy. “It remains to be seen whether that will actually be the case, but many investors simply have little patience,” remarks Simon Wiersma of ING, reflecting the current sentiment among market participants.
Oil prices managed to close a fraction higher on Tuesday, reversing a three-day streak of declines. The December future for a barrel of West Texas Intermediate oil ended the day slightly up by 0.1 percent, settling at $68.12 on the New York Mercantile Exchange. This price still hovers well below the critical $70 mark that many analysts are keeping an eye on.
The previous declines in oil prices were tied to concerns about future oil demand, with Matthew Polyak of Hummingbird Capital noting that recent reports indicated a 9 percent reduction in daily oil imports in China for October compared to the same period last year. In light of this, OPEC has revised its expectations for oil demand in 2024 and 2025 downward.
The euro/dollar exchange rate was recorded at 1.0614. By the time the American stock exchanges closed on Tuesday, the currency pair was trading at 1.0625, while it had dipped slightly to 1.0598 by the close of European exchanges.
Company news
Jefferies has lowered the price target for Umicore from 16.00 to 12.00 euros while maintaining a Hold recommendation. Analysts at Jefferies have cited the need for greater clarity regarding Umicore’s strategic direction, asserting that a significant turnaround in the battery materials market is still projected to be more than two years away.
Wall Street closing positions
The S&P 500 index wrapped up Tuesday’s trading session down by 0.3 percent, landing at 5,983.99 points. Meanwhile, the Dow Jones index saw a more pronounced decline, falling 0.9 percent to 43,910.98 points, and the Nasdaq technology exchange recorded a slight loss of 0.1 percent, closing at 19,281.40 points.
Decline, settling at $68.12 per barrel. Despite the slight increase, concerns over decreased demand, particularly from China, where imports fell by 9%, continue to loom over the oil market. The situation resembles a date that keeps avoiding commitment—teasing but not quite delivering on expectations.
In currency markets, the euro is currently trading at approximately 1.0614 against the dollar, fluctuating between 1.0598 and 1.0625. As traders closely monitor developments, the euro’s movements evoke tension akin to a reality show finale; everyone is on edge, just waiting for the next dramatic twist.
On the corporate front, notable news includes Jefferies’ decision to lower the price target for Umicore from €16.00 to €12.00, signaling a cautious outlook for the company. Analysts are calling for increased transparency, highlighting that Umicore’s turnaround in the battery materials segment could take over two years—a timeline that feels more like waiting for a sequel than an immediate fix.
As we look ahead, markets are bracing for the release of crucial inflation figures from the United States. These metrics are expected to provide guidance on future monetary policy from the Federal Reserve, adding another layer of anticipation to an already volatile environment.
At the end of the day, while the stock market resembles a roller coaster—with its unpredictable climbs and dips—a focus on broader economic indicators will ultimately determine the next moves for both investors and the market as a whole. So, stay vigilant, keep your sense of humor intact, and let’s see how this financial circus unfolds!