European stock markets open in green

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(ABM FN-Dow Jones) The European stock markets are approaching a higher opening on Friday.

IG anticipates an opening gain of 31 points for the German DAX, a plus of 9 points for the French CAC 40 and an increase of 13 points for the British FTSE 100.

Investors were still optimistic on Wednesday as the number of coronavirus infections seemed to increase less rapidly. On Thursday, however, it was announced that the number of infections with the virus increased from 44,700 to more than 60,000 in one day due to a new method by the Chinese government to determine infection.

“This sowed doubts about the recent record positions [op de beurzen]”, according to market analyst Connor Campbell from Spreadex.

Germany’s consumer prices for January were 1.7 percent higher in a final reading, which was in line with expectations. On a monthly basis, German consumer prices fell by 0.6 percent and that was also in line with the forecasts.

Furthermore, the European Union maintained the growth forecasts for 2020 and 2021 and is slightly more positive about inflation developments. With regard to the corona virus, the EU said in its quarterly report that the outbreak would peak in the first quarter and that the impact on the global economy would remain limited. However, a risk remains how long the outbreak lasts and how it is controlled.

Company news

Commerzbank reported a net loss in the last quarter of 2019 due to a restructuring charge. The dividend was reduced to 0.15 euros per share. The German bank expects to be able to maintain this dividend in 2020. The share increased 8.9 percent.

Thyssenkrupp saw the loss increase in the first quarter of the broken financial year, but maintained the outlook for the full year. The company is aiming for a stable adjusted EBIT, a falling free cash flow and a “significantly” higher net loss. The share price rose 0.2 percent.

Nestlé made more profit in 2019, thanks in part to the divestment of the skin care division. The dividend was increased and Nestlé announced a new share repurchase program. The share lost 2.2 percent.

Airbus performed better than expected in the fourth quarter and expects to deliver 880 aircraft this year. This does not include the possible impact of the corona virus. The share fell 2.8 percent.

Aegon achieved a lower underlying result in the second half of 2019, due to low interest rates and an outflow at the US pension and annuity companies. The share fell 5.3 percent.

Sector colleague NN Group did better. The stock won no less than 10.8 percent on Thursday after the results in the fourth quarter were better than expected. NN also said that it would pay a progressive dividend and would like to buy back its own shares for at least 250 million euros.

AkzoNobel expects to grow at least in line with the market in the period 2021 to 2023 and wants to achieve a further improvement in profitability. The company announced this on Thursday during an investor day in London. AkzoNobel saw the market value increase by 5.1 percent.

RELX booked more revenue and a higher operating result in 2019, which was rewarded with a price gain of 2.3 percent.

Unibail-Rodamco-Westfield started the day well after Wednesday night’s figures, but was unable to hold on and closed 1.4 percent lower. According to analysts from Berenberg, the annual results of the real estate company were slightly better than expected. The buying advice was maintained, but Berenberg lowered the target price from 155.00 to 150.00 euros.

In London, gas producer Centrica lost 15.3 percent after weak annual figures, with a loss of more than a billion British pounds.

Euro STOXX 50 3,846.74 (-0.2%)
STOXX Europe 600 431.08 (-0.0%)
DAX 13,745.43 (-0.0%)
CAC 40 6,093.14 (-, 2%)
FTSE 100 7,452.03 (-1.1%)
SMI 11,092.35 (+ 0.0%)
AEX 629.14 (+ 0.0%)
BEL 20 4,182.78 (-0.0%)
FTSE MIB 24,892.15 (+ 0.1%)
IBEX 35 9,909.80 (-0.3%)

AMERICAN SHARES

Wall Street opens higher on Friday according to US futures.

The markets started somewhat lower on Thursday after investors’ concerns about the corana virus increased again. Then the stock markets recovered, but in the last hour there was some pressure on the prices again.

In addition to a test, infections in the Chinese province of Hubei are now also based on a clinical diagnosis, which led to a sharp increase in the number of infections.

The sharp increase in reported cases reported on Thursday is a one-time change due to the methodology and does not in itself mean an acceleration of infection rate, said Chief Strategist Seema Shah at Principal Global. “It may well be that the market has had a shock reaction as a result of the new reports about the outbreak.”

“In recent days, markets have become increasingly confident that the virus will weaken rapidly. But if the change in methodology leads to an increase in the growth rate of reported cases, then market sentiment will inevitably deteriorate,” said Seema Shah .

The US Department of Justice has initiated a new criminal prosecution against Chinese tech giant Huawei and two of its US subsidiaries.

Federal prosecutors in Brooklyn reported that the new charges are related to an attempt by Huawei and its subsidiaries, both in the US and in China, to steal intellectual property, including from six US technology companies. The prosecutors said that Huawei’s efforts were successful.

On a macroeconomic level, it was announced beforehand that consumer prices in the United States rose by 0.1 percent on a monthly basis in January. Annual inflation was 2.5 percent.

The number of first applications for unemployment benefits in the United States increased slightly in the week ending February 8. The number of new applications for unemployment benefits increased by 2,000 to 205,000.

The March future for a barrel of crude oil closed Thursday on the New York Mercantile Exchange $ 0.25 higher, or 0.5 percent, at $ 51.42. Demand for oil will be under pressure for the first time in more than 10 years as a result of the corona virus, according to a report from the International Energy Agency. However, the reported drop in demand from the International Energy Agency was “not a shock,” said Phil Flynn, analyst of The Price Futures Group. “I think the traders had already priced in a larger order.”

Company news

The Tesla share was 4.7 percent higher. The manufacturer of electric cars announced beforehand that they wanted to raise around 2 billion dollars with a share issue.

CEO Elon Musk will participate in the issue for around 10 million dollars. Board member Larry Ellison will also buy new shares for 1 million dollars. The proceeds must strengthen the balance sheet and will be used for general purposes, Tesla stated.

Cisco Systems performed above expectations in the second quarter of its current financial year, but was unable to convince the market after trading hours. The share was 5.2 percent lower.

Kraft Heinz saw revenue fall in the fourth quarter of 2019, but managed to exceed the profit forecast. The share lost 7.6 percent.

Applied Materials rose 3.1 percent after the American supplier to the semiconductor industry exceeded earnings and revenue expectations on Wednesday evening last quarter.

PepsiCo reported a profit of 1.26 dollars per share on a turnover of 20.6 billion dollars in the past quarter. In addition, the group announced a 7 percent higher dividend of $ 4.09 per share. The share was 0.3 percent higher.

MGM Resorts International fell 5.5 percent after the publication of disappointing figures for the fourth quarter and the announcement that CEO Jim Murren is not going to renew his contract.

Ralph Lauren said that the impact of the corona virus on the fiscal year 2020 could amount to 70 million dollars. The share was worth 0.6 percent less.

Amazon won a federal court temporary restraining order on Thursday to block the Pentagon granting a $ 10 billion cloud computing contract to Microsoft. Last year, Microsoft won the Pentagon Billion Contract at Amazon’s expense. Both shares had to fall by 0.5 percent in value.

Mattel and Nvidia come on Thursday after market with quarterly figures.

S&P 500 index 3,373.94 (-0.2%)
Dow Jones index 29,423.31 (-0.4%)
Nasdaq Composite 9,711.97 (-0.1%)

ASIA

The Asian stock markets were divided on Friday, with a minus for the Japanese Nikkei and a win for the Chinese Shanghai Composite.

Nikkei 225 23,667.21 (-0.7%)
Shanghai Composite 2,911.90 (+ 0.2%)
Hang Seng 27,844.03 (+ 0.4%)

CURRENCIES

The euro / dollar was 1.0834. When the American markets were closed on Thursday, the coin pair still moved to 1,0841 and when the European markets were closed there was a stand of 1,0851 on the plates.

USD / JPY and 109.80
EUR / USD Euro 1.0834
EUR / JPY and 118.97

MACRO AGENDA:
00:00 Trade balance – December (Call)
08:00 Economic growth – Fourth quarter (Dld)
11:00 Economic growth – Fourth quarter 2nd estimate (eur)
11:00 Employment – Fourth quarter (eur)
14:30 Retail sales – January (US)
14:30 Import prices – January (US)
15; 15 Industrial production – January (USA)
16:00 Business Stocks – December (US)
16:00 Consumer confidence Michigan – February vlpg. (US)

COMPANY NEWS:
07:00 Credit Agricole – Figures fourth quarter (Fra)
07:00 Renault – Fourth quarter figures (Fra)
07:30 Brunel – Fourth quarter figures
08:00 Royal Bank of Scotland – Figures fourth quarter (UK)
00:00 Canopy Growth – Figures fourth quarter (Can)
00:00 VEON – Figures fourth quarter

ABMFNABM Financial News; [email protected]; Editorial staff: +31 (0) 20 26 28 999.

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