(ABM FN-Dow Jones) The European stock markets are approaching a lower opening on Friday.
IG anticipates an opening loss of 31 points for the German DAX, a minus of 8 points for the French CAC 40 and a decrease of 16 points for the British FTSE 100.
European stock markets closed higher on Thursday, due to decreasing investors’ concerns about the corona virus, while China’s promise to lower import duties was also good for the vote.
China is going to substantially reduce import duties on US goods, worth 75 billion dollars, and is also planning to reduce domestic VAT.
“Traders jumped on top of the story about lower import duties, because it shows that trade relations between the two camps have developed positively,” said market analyst David Madden of CMC Markets. “Beijing is under enormous pressure due to the deteriorating health situation, so the promise to lower taxes is a convenient way to improve mood in the market,” said Madden.
The uncertainty among investors also decreased as the Senate acquitted US President Donald Trump on Wednesday in the settlement procedure. The ruling, which was in line with expectations, took place after the European markets closed on Wednesday.
In Europe, business results on Thursday were generally better than expected. In Amsterdam, steel producer ArcelorMittal in particular was a major player, after strong results and a higher than expected dividend.
Economically, German factory orders fell sharply in December, by 2.1 percent. This was a disappointment for the market, which was expecting an increase of 0.7 percent.
Deutsche Bank closed 13 higher after the news that California’s Capital Group is taking a 3.1 percent stake in the German investment bank. The asset manager thereby supports Deutsche’s latest reorganization plan. The share has already risen by 30 percent since the beginning of the year.
As expected, ING saw its profit fall back to 880 million euros in the fourth quarter due to higher costs for bad debts and taxes. The results fell more strongly than analysts had anticipated. ING wants to pay a dividend of 0.69 euros per share for 2019, of which 0.24 euros was paid in August. The share closed with a 1.9 percent profit.
ArcelorMittal posted stronger than expected underlying results, with an underlying profit of $ 925 million. This was less than a year earlier, but the company has become more optimistic about the demand for steel in its core markets. The company expects worldwide steel consumption to rise this year, which will translate into better prices. The steel company won 9.0 percent on Thursday.
Nokia exceeded expectations with its profit of 821 million euros in the fourth quarter, in which telecom companies continued to spend a lot on 5G networks. The company warned that competition in the market remains intense. Nokia won 2.3 percent in Helsinki.
CFO Felipe Dutra leaves AB InBev. He is succeeded by Fernando Tennebaum. The beer brewer’s course ultimately barely changed.
Publicis repeated its own expectations after the sales increase in the fourth quarter, to 2.87 billion euros. The share initially increased but that profit eventually evaporated almost completely.
The French pharmaceutical company Sanofi had to announce a quarterly loss. New treatments made growing sales, but this was canceled out by the fact that the Zantac heartburn remedy had to be removed from the shelves after making it a carcinogen. Sanofi closed 4 percent higher.
Euro STOXX 50 3,805.52 (+ 0.73%)
STOXX Europe 600 425.49 (+ 0.44%)
DAX 13,574.82 (+ 0.72%)
CAC 40 7,504.79 (+ 0.88%)
FTSE 100 7,504.79 (+ 0.30%)
SMI 11,012.36 (+ 0.17%)
AEX 618.75 (+ 0.87%)
BEL 20 4,140.23 (+ 0.91%)
FTSE MIB 24,490.35 (+ 1.05%)
IBEX 35 9,811.30 (+ 0.96%)
Wall Street opens with a loss on Friday according to the American futures.
The American stock markets closed on new records on Thursday, following positive news from the American-Chinese trade front and decreasing concerns about the corona virus in China.
Signs of further improvement of trade relations between China and America were held responsible for the positive exchanges.
The outbreak of a virus that is said to have originated in the Chinese city of Wuhan, which has claimed more than 560 lives and has infected 28,000 people worldwide, has meanwhile shifted to the background.
China announced that from 14 February the country will halve part of its import duties on US goods worth 75 billion dollars. This is part of the provisional trade agreement that the country concluded with the US, the Chinese Ministry of Finance reported, and is intended to promote the healthy and stable development of Sino-US trade relations.
In September and December last year, penalties were imposed after increasing animosity between Washington and Beijing.
“The reduction in Chinese taxes is what is behind today’s profits,” said J.J. Kinahan from TD Ameritrade. “If we had not already had such a strong recovery this week, then this news would have set the stock market on fire even more.”
Investors were concerned that the virus would make it difficult for China to keep its promises to buy more US goods and services in a two-year period.
The removal proceedings against President Donald Trump failed Wednesday, as expected, after the Senate acquitted the President of allegations of abuse of power and opposition from Congress.
The markets focused on economic news, on falling unemployment benefit applications in the last week and on accelerating growth in labor productivity in the fourth quarter.
The share of Tesla opened lower, around $ 700, after the huge rise in the previous days that ended with a tumbling Wednesday at the end of the day, but eventually the electric car manufacturer managed to find its way up again. The stock eventually closed just under $ 749.
Twitter went wild with a price gain of 15 percent. The social platform turned over more than 1 billion dollars for the first time, while the number of daily users in the last quarter was considerably higher at 152 million than the 126 million in the previous year. In the previous quarter this was 145 million.
Estée Lauder submitted a good report, but became more cautious about the near future due to the corona virus. The cosmetics group rose 5 percent.
Tyson Foods, on the other hand, lost 5 percent after the meat producer reported disappointing sales in the past quarter. The adjusted profit was better than expected.
GoPro ended 9 percent lower, although the action camera manufacturer reported a 40 percent higher quarterly revenue on Wednesday. Analysts counted on more.
Qualcomm narrowly closed after the semiconductor and smartphone technology company on Wednesday broke the profit forecast. However, the issued outlook was received with the necessary restraint.
S&P 500 index 3,345.78 (+ 0.33%)
Dow Jones index 29,379.77 (+ 0.30%)
Nasdaq Composite 9,572.15 (+ 0.67%)
The Asian stock markets were in the red on Friday, with a minus of 0.2 percent for the Japanese Nikkei and a loss of 0.8 percent for the Chinese Shanghai Composite.
Nikkei 225 23,816.31 (-0.2%)
Shanghai Composite 2,847.80 (-0.7%)
Hang Seng 27,265.24 (-0.8%)
The euro / dollar recorded at 1.0981. When the American markets were closed on Thursday, the coin pair still moved to 1.0978 and when the European markets were closed, there were 1.0979 on the plates.
USD / JPY and 109.89
EUR / USD Euro 1,0981
EUR / JPY and 120.67
4:00 AM Export – January (Chi)
06:30 Industrial production – December (NL)
08:00 Export – December (En)
08:00 Industrial production – December (Dld)
08:45 Industrial production – December (Fra)
14:30 Job growth and unemployment – January (US)
4:00 PM Wholesale Stocks – December (US)
21:00 Consumer credit – December (US)
13:00 AbbVie – Figures fourth quarter (US)
ABM Financial News; [email protected]; Editorial staff: +31 (0) 20 26 28 999.
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