(ABM FN-Dow Jones) The European stock markets will open lower on Wednesday, pending some macro figures and the results of Meta and Microsoft, after those of Alphabet were well received on Tuesday evening.
IG forecasts an opening loss of 76 points for the German DAX, a minus of 35 points for the French CAC 40 and a decline of 40 points for the British FTSE 100.
European stock markets closed lower on Tuesday after investors digested many corporate figures. People were mainly waiting for the Magnificent Seven companies in the US, which can influence sentiment on the stock markets.
After Tesla set a good example last week, Google parent Alphabet will follow after trading on Tuesday, after which Microsoft and Meta will announce results on Wednesday and Apple and Amazon on Thursday. Nvidia will follow in a few weeks.
The American elections are also hanging over the market, while the unrest about tensions in the Middle East seems to have clearly diminished, given the lower oil price.
In the morning there was some tailwind from Asia with gains in Hong Kong and Tokyo, but losses in Shanghai and Mumbai. Interest rates on both sides of the ocean continued to rise.
German consumer confidence for November improved from -21.0 to -18.3, where a smaller improvement was expected.
Later in the afternoon, house prices in the US appeared to have risen less rapidly and the number of vacancies fell, while consumer confidence improved sharply in October, according to The Conference Board. The vacancy figures, which provide an indication of the labor market, could be important for the Fed’s next interest rate decision.
European stock markets closed even higher on Monday while oil prices fell after Israel avoided oil and nuclear facilities in that country in a retaliatory attack on Iran following pressure from the US. This reduced fears of a disruption in the oil supply from the region. “The hope is that the situation in the Middle East can now de-escalate,” IG said.
Risers and fallers
Adidas was in demand in Frankfurt after excellent third-quarter figures. Earlier this month, the German sportswear company announced an increase in its outlook. The share rose 3.8 percent.
Volkswagen fell 3.2 percent, as did Porsche. Volkswagen wants to take drastic action in Germany with the closure of three factories, but the heavy package could be met with employee strikes.
Lufthansa had to give up 5.2 percent after the airline announced that turnover increased in the past quarter, but profitability was under pressure.
HelloFresh lost 2.5 percent after confirming last week’s preliminary figures, but losses were limited compared to earlier in the day.
In Paris, the list was led by defense company Dassault with a gain of 1.7 percent, followed by semiconductor manufacturer STMicroelectronics, which added 1.6 percent.
In London, Pearson rose 4.3 percent. The company achieved higher underlying revenues and wants to incorporate AI into all its products for greater growth. The bank HSBC closed 3.1 percent higher, after better than expected figures and a new share buyback.
BP fell hard and closed 5 percent lower in London. Profits were under pressure due to falling oil prices and lower margins, but the decline was smaller than expected.
Novartis lost 4.1 percent in Zurich, despite a strong quarter and outlook increase.
Euro STOXX 50 4,950.02 (-0.40%)
STOXX Europe 600 517,99 (-0,57%)
DAX 19.478,07 (-0,27%)
CAC 40 7.511,11 (-0,61%)
FTSE 100 8.219,61 (-0,80%)
SMI 12.100,57 (-1,12%)
AEX 894.64 (-0.24%)
BEL 20 4.284,44 (0,40%)
FTSE MIB 34.925,59 (-0,26%)
IBEX 35 11.795,30 (-0,91%)
US STOCKS
Wall Street opens almost flat on Wednesday, according to the American futures, in the run-up to another session with a lot of figures.
US stock markets closed higher on Tuesday, led by the Nasdaq technology index, which set a new record ahead of more results from the Magnificent Seven of the big tech companies.
There were handfuls of corporate results for investors to digest. Ford and PayPal took a step back after disappointing figures, Alphabet stole the show after trading with strong growth figures. About a third of the S&P500 companies are on the docket this week.
There was economic news about consumer confidence in the US, which according to Conference Board has improved significantly. There were also figures on house prices and vacancies, which could influence the Fed’s upcoming interest rate decision. A weakening job market may mean more interest rate cuts.
Company news
Alphabet, a technology company in the Magnificent Seven category, reported quarterly figures after the close that were positively received. Sales increased by 15 percent year-over-year from $76.7 billion to $88.3 billion. The share rose 4 percent after hours.
Snap also rose sharply after the close, by 5.6 percent, thanks to good revenue growth and the prediction of more growth after AI applications provided more advertisers. The number of subscribers also rose sharply.
AMD lost 7 percent after hours, after the share had risen 4 percent in regular trading before the figures were published.
Ford said late Monday that it expects full-year operating profit of about $10 billion, at the lower end of expectations issued in July. Shares fell 8.4 percent.
PayPal posted a better-than-expected profit in the third quarter, while revenue came in below expectations and disappointed fourth-quarter revenue guidance. The profit forecast for the current quarter was actually better than expected. The share lost 4.0 percent.
Boeing will raise about $21 billion with the capital increase announced on Monday, instead of the previously reported $19 billion. Instead of 90 million, 112.5 million ordinary shares are now being issued. The share rose 1.5 percent, partly making up for Monday’s price loss.
Pfizer closed 1.4 percent lower, after a higher start. The share quickly fell, despite a better-than-expected quarterly profit and an increase in the outlook.
McDonald’s saw sales increase in the third quarter of 2024, but comparable sales were under pressure. The stock closed slightly lower.
S&P 500 index 5.832,92 (+0,16%)
Dow Jones index 42.233,05 (-0,36%)
Nasdaq Composite 18.712,75 (+0,78%)
ASIA
The Asian stock markets were mixed on Wednesday, with a plus 1.1 percent for the Japanese Nikkei and a loss of 1.1 percent for the Chinese Shanghai Composite.
Nikkei 225 39.326.42 (+1,1%)
Shanghai Composite 3.252,07 (-1,1%)
Hang Seng 20,333.64 (-1.8%)
VALUE
The euro/dollar traded at 1.0815. When the American stock exchanges closed on Tuesday, the currency pair was still at 1.0811 and when the European stock exchanges closed, it was at 1.0824.
USD/JPY Yen 153,21
EUR/USD 1,0815
EUR/JPY Yen 165.72
MACRO-AGENDA:
06:30 Producer prices – September (NL)
06:30 Producer confidence – October (NL)
07:30 Economic growth – Third quarter vlpg (Fra)
09:55 Unemployment – October (Germany)
10:00 Economic growth – Third quarter vlpg (Dld)
11:00 Economic growth – Third quarter vlpg (eur)
11:00 Consumer confidence – October final (eur)
12:00 Mortgage Applications – Weekly (US)
13:15 Course report ADP – October (VS)
13:30 Economic growth – Third quarter vlpg (US)
14:00 Inflation – October vlpg (Dld)
3:00 PM Upcoming home sales – September (US)
3:30 PM Oil Stocks – Weekly (US)
COMPANY NEWS:
07:00 Vopak – Third quarter figures
07:00 Wolters Kluwer – Third quarter figures
07:00 Melexis – Third quarter figures
07:00 Airbus – Third quarter figures (Fra)
07:00 BASF – Third quarter figures (Dld)
07:00 Outokumpu – Third quarter figures (Fin)
07:00 Volkswagen – Third quarter figures (Dld)
07:00 Worldline – Third quarter figures (Fra)
07:00 UBS – Third quarter figures (Zwi)
12:00 Caterpillar – Third Quarter Figures (US)
12:00 GSK – Third Quarter Figures (UK)
12:00 DuPont – Third quarter figures (US)
12:00 Eli Lilly – Third Quarter Numbers (US)
12:00 Kraft Heinz – Third quarter figures (US)
6:00 PM Marel – Third quarter figures
21:00 DoorDash – Third quarter figures (US)
21:00 Meta – Third quarter figures (US)
21:00 Microsoft – First quarter figures (US)
9:00 PM Starbucks – Fourth Quarter Figures (US)
22:00 Galapagos – Third quarter figures
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 Markets: Downward Trends and Corporate Rollercoasters
Well, would you look at that! European stock markets are set to open lower, and it’s not surprisingly shocking news! Traders are scratching their heads, watching and waiting like it’s the last episode of their favourite soap opera, and let’s be honest, it’s a bit of a cliffhanger. Everyone’s keen for some macro figures and those oh-so-anticipated results from the likes of Meta and Microsoft. And why? Because Alphabet’s results were received better than a surprise birthday party thrown by a friend who you’ve just ‘forgotten’ to invite to anything for years!
According to IG, we can expect a loss of about 76 points for the German DAX—sounds like a fun ride, eh? The French CAC 40 is in for a neat little drop of 35 points, and our British FTSE 100 is looking at a dip of 40 points. You’d think the markets were on an enforced diet, cutting back on gains left, right, and centre!
The Rollercoaster of Corporate Earnings
So, why all the fuss? Well, on Tuesday, investors munched through a feast of corporate figures like it was a buffet, and now everyone’s waiting for the so-called “Magnificent Seven” companies from the US to sprinkle a bit of fairy dust on the market sentiment. After Tesla’s stellar performance last week – bikes, not bad for a car company that keeps deciding it’s also a tech firm—Alphabet hit the stage with results that shined brighter than a diamond! Meanwhile, folks are practically on the edge of their seats for Microsoft and Meta’s performances, which are happening today. Speak about nail-biting tension!
Markets Reacting to Global Events
The atmosphere isn’t all sunshine and rainbows, though. With the American elections looming like a dark cloud and geopolitical tensions in the Middle East easing, you’d think peace and tranquility would have a butterfly effect on the oil prices. Well, apparently not! We’ve had a bit of tailwind coming from Asia this morning, especially with gains in Hong Kong and Tokyo, but it seems like Shanghai and Mumbai forgot to check the memo about good vibes and decided to dip instead.
The Economic Forecast and Trading Tidbits
Meanwhile, over in Germany, consumer confidence took a little hop from -21.0 to -18.3. While improvements are nice, it still sounds like a lot of people are prepared to stay on the couch instead of shopping. Let’s face it, who doesn’t want to lay around in pajamas? Later today, we’ll also get a glimpse into the US house prices and vacancy trends; could this give the Fed a reason to put the interest rate cuts on a nice little shopping spree? Spoiler alert: it might! The economy’s got more ups and downs than a yo-yo on a roller coaster!
Risers and Fallers – The Corporate Drama
Sticking with the rollercoaster theme, Adidas seems to be hanging onto a safety bar with a 3.8% rise after releasing excellent third-quarter figures. Meanwhile, Volkswagen and Porsche are seeing red with a 3.2% downturn; maybe they should consider a career in less volatile industries, like knitting!
Lufthansa is feeling the pinch too—down 5.2%—turnover increased, but guess what? Profitability didn’t get the memo about the party! HelloFresh, on the other hand, lost a mere 2.5%, which is like dieting while still sneaking in the occasional slice of cake; minimal damage!
In Paris, the defense company Dassault showed resilience with a gain of 1.7% while semiconductor manufacturer STMicroelectronics followed suit with 1.6%. Meanwhile, London’s Pearson rose by 4.3% because apparently, they can talk about AI and not bore everyone to death! On the opposite end, BP is down 5% as the falling oil prices decided to treat profits like a bad breakup.
Wall Street: A Steady Pulse
Across the pond, Wall Street seems to be warming up to a flat opening, but don’t be fooled folks; it’s more like a calm before the storm with earnings swinging in from tech titans. After Alphabet’s stellar performance, it seems like the Nasdaq is head over heels, setting records like a contestant on a reality show trying to win at life!
Asian Markets: Mixed Signals
And finally, Asian markets are playing a game of mixed signals, with the Nikkei up 1.1% while the Shanghai Composite is down by the same percentage. Looks like everyone’s trying to play nice, but it’s a bit like herding cats, isn’t it?
Currency Watch
For the currency enthusiasts, the euro/dollar is trading at 1.0815, which is fantastic if you’re into balancing your financial ledger. And for those curious about foreign exchange, it’s a wild world on its own!
Conclusion
So, with all this financial theatre unfolding, we’re left wondering: Will the stock rise or fall following this news item? Well, pull up a chair, grab some popcorn, and let’s watch the show together as the drama of the markets plays out in real-time. What’s next? Only a cash cow knows!
Disclaimer: The above commentary is not intended as professional investment advice. Always do your own research before making investment decisions. And remember, trading in the stock market can be as unpredictable as a cat in a room full of rocking chairs!
(ABM FN-Dow Jones) European stock markets are set to open lower on Wednesday as investors await crucial macroeconomic data and notable earnings reports from tech giants Meta and Microsoft. This follows a positive reception of Alphabet’s results on Tuesday evening, which showcased robust financial growth.
IG has predicted that the German DAX will see a drop of 76 points, while the French CAC 40 is anticipated to decline by 35 points, and the British FTSE 100 is expected to fall by 40 points as well. These projections reflect market sentiment amid significant corporate earnings news.
European stock markets concluded Tuesday’s trading session on a down note, as investors absorbed a wealth of corporate earnings reports and awaited the forthcoming results from the “Magnificent Seven” companies in the US, whose performance can heavily influence global market sentiment.
Following Tesla’s impressive results last week, Alphabet’s parent company is poised to release its earnings after market close on Tuesday. Microsoft and Meta are scheduled to disclose their financial outcomes on Wednesday, while tech behemoths Apple and Amazon are set to follow suit on Thursday. Nvidia’s earnings report is also anticipated in the upcoming weeks.
Market uncertainties surrounding the upcoming American elections continue to loom, while tensions in the Middle East appear to have eased, evidenced by a decrease in oil prices.
Asian markets provided some positive momentum in the morning, with notable gains in Hong Kong and Tokyo; however, losses were recorded in both Shanghai and Mumbai. Interest rates have continued to trend upwards on both sides of the Atlantic, contributing to the overall cautious market sentiment.
German consumer confidence saw an unexpected improvement for November, rising from -21.0 to -18.3, surpassing forecasts of a more modest increase.
Data released in the afternoon indicated that US housing prices have risen at a slower pace than previously recorded, alongside a reduction in job vacancies. However, consumer confidence registered a significant spike in October, as reported by The Conference Board. These vacancy figures are pivotal for gauging the labor market and could heavily influence the Federal Reserve’s upcoming interest rate decisions amidst a potentially weakening job market.
In a notable turn of events, European stock markets traded higher on Monday, buoyed by a decline in oil prices following Israel’s targeted avoidance of oil and nuclear facilities in a retaliatory strike against Iran, following US diplomatic pressure. This development has mitigated concerns over potential disruptions to oil supplies from the region, with market analysts at IG expressing cautious optimism that Middle Eastern tensions might de-escalate.
Risers and fallers
Adidas saw a surge in demand on Frankfurt’s exchange following the release of exceptional third-quarter figures. Earlier this month, the iconic German sportswear brand revised its forecast upwards, resulting in a notable 3.8 percent increase in its stock price.
Conversely, Volkswagen experienced a 3.2 percent decline, alongside a drop for Porsche. The automotive giant is pursuing significant restructuring efforts in Germany, including the closure of three factories, a move that may provoke employee strikes in response to the drastic measures.
Lufthansa’s shares dipped by 5.2 percent after the airline announced an increase in turnover for the last quarter, yet profitability remained under considerable pressure amidst rising operational costs.
HelloFresh’s stock decreased by 2.5 percent after confirming preliminary figures from the previous week; however, the day’s losses were not as severe as initially anticipated.
In Paris, defense contractor Dassault led gains with a 1.7 percent increase, closely followed by semiconductor firm STMicroelectronics, which saw its shares rise 1.6 percent.
In London, Pearson’s shares increased by 4.3 percent as the company reported higher underlying revenues and announced plans to integrate AI technologies across all its products to drive further growth. Additionally, HSBC shares climbed 3.1 percent after exceeding expectations with its latest financial results and launching a new share buyback program.
Elsewhere, BP shares suffered a sharp decline, closing 5 percent lower in London due to profit pressures stemming from declining oil prices and reduced margins, although the drop was less severe than market analysts had anticipated.
Novartis shares fell by 4.1 percent in Zurich, despite reporting a strong quarterly performance and an optimistic outlook adjustment.
US STOCKS
Wall Street is projected to open nearly flat on Wednesday, with American futures suggesting a cautious approach as the market prepares for another day filled with significant financial disclosures.
On Tuesday, US stock markets closed on a positive note, primarily driven by the Nasdaq technology index, which reached new record highs in anticipation of further performances from the big tech companies known as the Magnificent Seven.
Investors were busy digesting a slew of corporate earnings, with Ford and PayPal trending downward following disappointing results, while Alphabet garnered attention for its robust year-over-year growth metrics. Approximately one-third of S&P 500 companies are set to report earnings this week, adding to market anticipation.
Noteworthy economic data highlighted consumer confidence in the US, which has markedly improved according to The Conference Board. Additionally, house price figures and vacancy rates were released, both of which are critical for understanding labor market dynamics and may play a role in shaping the Federal Reserve’s monetary policy in the near future.
Company news
After hours, Alphabet, a key player in the Magnificent Seven, unveiled quarterly figures that were met with enthusiasm on Wall Street, showcasing a sales uplift of 15 percent year-over-year, from $76.7 billion to $88.3 billion, leading to a 4 percent share price increase post-market.
Snap’s stock experienced a notable uptick of 5.6 percent following its results, driven by impressive revenue growth and promising forecasts as AI applications attracted more advertisers and spurred a significant increase in subscribers.
In contrast, AMD faced a 7 percent drop in after-hours trading after a notable gain during regular trading hours, as investors reacted to its earnings release.
Ford recently announced an adjusted full-year operating profit forecast of approximately $10 billion, aligning with the lower end of prior expectations, resulting in an 8.4 percent decline in its share price.
PayPal reported a better-than-expected quarterly profit; however, its revenue figures fell short of anticipations, and its guidance for the fourth quarter disappointed analysts. The share price reflected this mixed performance, falling by 4.0 percent.
Boeing’s recent capital expansion effort aims to raise about $21 billion, surpassing initial reports of $19 billion. The number of ordinary shares set to be issued has increased from 90 million to 112.5 million, positively affecting its stock value, which rose by 1.5 percent following Monday’s losses.
Pfizer finished 1.4 percent lower, even after an upbeat start, as the stock struggled to maintain gains despite reporting a better-than-expected quarterly profit coupled with an optimistic outlook.
McDonald’s reported an increase in third-quarter sales; however, comparable sales faced headwinds, leading to a slight decline in its stock price.
S&P 500 index 5.832,92 (+0,16%)
Dow Jones index 42.233,05 (-0,36%)
Nasdaq Composite 18.712,75 (+0,78%)
ASIA
The Asian stock markets displayed mixed results on Wednesday, with the Japanese Nikkei gaining 1.1 percent while the Chinese Shanghai Composite faced a 1.1 percent loss.
Nikkei 225 39.326.42 (+1,1%)
Shanghai Composite 3.252,07 (-1,1%)
Hang Seng 20,333.64 (-1.8%)
VALUE
The euro/dollar exchange rate was trading at 1.0815. When US markets closed on Tuesday, the currency pair was noted at 1.0811, shifting to 1.0824 by the end of European trading.
USD/JPY Yen 153,21
EUR/USD 1,0815
EUR/JPY Yen 165.72
MACRO-AGENDA:
06:30 Producer prices – September (NL)
06:30 Producer confidence – October (NL)
07:30 Economic growth – Third quarter vlpg (Fra)
09:55 Unemployment – October (Germany)
10:00 Economic growth – Third quarter vlpg (Dld)
11:00 Economic growth – Third quarter vlpg (eur)
11:00 Consumer confidence – October final (eur)
12:00 Mortgage Applications – Weekly (US)
13:15 Course report ADP – October (VS)
13:30 Economic growth – Third quarter vlpg (US)
14:00 Inflation – October vlpg (Dld)
3:00 PM Upcoming home sales – September (US)
3:30 PM Oil Stocks – Weekly (US)
COMPANY NEWS:
07:00 Vopak – Third quarter figures
07:00 Wolters Kluwer – Third quarter figures
07:00 Melexis – Third quarter figures
07:00 Airbus – Third quarter figures (Fra)
07:00 BASF – Third quarter figures (Dld)
07:00 Outokumpu – Third quarter figures (Fin)
07:00 Volkswagen – Third quarter figures (Dld)
07:00 Worldline – Third quarter figures (Fra)
07:00 UBS – Third quarter figures (Zwi)
12:00 Caterpillar – Third Quarter Figures (US)
12:00 GSK – Third Quarter Figures (UK)
12:00 DuPont – Third quarter figures (US)
12:00 Eli Lilly – Third Quarter Numbers (US)
12:00 Kraft Heinz – Third quarter figures (US)
6:00 PM Marel – Third quarter figures
21:00 DoorDash – Third quarter figures (US)
21:00 Meta – Third quarter figures (US)
21:00 Microsoft – First quarter figures (US)
9:00 PM Starbucks – Fourth Quarter Figures (US)
22:00 Galapagos – Third quarter figures
