European stock markets open lower


(ABM FN-Dow Jones) The European stock markets are heading for a red opening on Friday.

IG anticipates an opening loss of 94 points for the German DAX, a minus 40 points for the French CAC 40 and a 59 points drop for the UK FTSE 100.

Equity markets in Europe also ended lower on Thursday.

“Investors are concerned that reopening economies will lead to a second Covid-19 contagion wave,” CMC Markets market analyst David Madden said on Thursday. “A number of countries where the lockdown measures have been eased are seeing the new infections increase again. That was the result of investors’ minds.”

Moreover, because of Ascension, volatility was low, Madden said.

On a weekly basis, the Stoxx 600 and DAX are still quite in the plus, because of the hope of a soon corona vaccine. This is offset by the increased tensions between the United States and China. The United States Senate voted on Wednesday evening for a new law that would make it difficult for Chinese companies to raise capital in the US or get a listing there.

Macroeconomic figures showed on Thursday that the European economy is cautiously climbing out of a trough. Economic activity in the eurozone declined in May, but less sharply than in the previous month. The currencies composite purchasing managers index for the currency union improved from 13.6 in April to 30.5 this month. British purchasing managers were also less negative.

Despite the index’s gains, Markit Economics chief economist Chris Williamson still predicts an economic contraction of about 10 percent quarter on quarter in the Eurozone for the second quarter.

Risers and Fallers

Galapagos lost 8.0 percent. The biotech company showed good study results with filgotinib in moderate to severe ulcerative colitis at large doses, according to Jefferies, but results were less convincing at lower doses.

Altice Europe lost almost 14 percent after figures. The French cable operator’s turnover rose by 3.6 percent year-on-year in the past quarter to EUR 3.63 billion. This was in line with analyst expectations. Adjusted operating profit (EBITDA) increased by 1.0 percent to 1.31 billion euros. Here, however, analysts had predicted 1.33 billion euros. Credit Suisse was pleased with Altice’s expectations for free medium-term free cash flow.

Price fighter easyJet will operate flights from 15 June on routes where there is sufficient demand. The stock won 4.4 percent.

Sector colleague Lufthansa confirmed on Thursday that it is talking about a support package. This could make the German state a major shareholder with a 25 percent stake. The Lufthansa share rose 2.7 percent.

AstraZeneca plans to deliver a potential corona vaccine from the University of Oxford in September. The pharmaceutical company will receive more than $ 1 billion from the American Biomedical Advance Research and Development Authority. The AstraZeneca share rose 0.9 percent.

Whitbread fell 13.4 percent. The British hotel and restaurant business, which has been hit hard by the corona crisis, has announced an annual release that it hopes to raise £ 1 billion.

Euro STOXX 50 2,904.98 (-1.3%)
STOXX Europe 600 340.26 (-0.8%)
DAX 11,065.93 (-1.4%)
CAC 40 4,445.45 (-1.2%)
FTSE 100 6,015.25 (-0.9%)
SMI 9,790.85 (+ 0.3% – closing Wednesday)
AEX 522.81 (-1.6%)
CALL 20 2,940.62 (-1.8%)
FTSE MIB 17,087.06 (-0.7%)
IBEX 35 6,686.10 (+ 0.04%)


Wall Street is expected to open in red on Friday.

Wall Street ended lower on Thursday. Investors were concerned about the mounting tensions between the United States and China, as the US Senate has passed a law that will make it more difficult for Chinese companies to raise capital or get a listing on the US.

This creates uncertainty in a market where there is already a lot of uncertainty, according to asset manager Justin Onuekwusi of Legal & General Investment Management. Because the market sentiment is fragile, this uncertainty increases volatility.

Market strategist Seema Shah of Principal Global Investors pointed to the recent days’ rally driven by hopes of a corona vaccine. “Even if this is the vaccine that everyone hopes for, it will take at least 12 months before it comes on the market,” said the market expert, who speaks of excessive optimism.

It was a busy day macro-economically. For example, the number of new unemployment benefits in the US grew less rapidly last week than in the previous week, but still rose by 2.44 million new claims. The number of extended applications stands at over 25 million units.

“The situation [op de Amerikaanse arbeidsmarkt] is no longer as disastrous as before, but investors remain cautious, “said AvaTrade’s market analyst Naeem Aslam.

Meanwhile, purchasing managers were slightly less pessimistic in May, given the index level of 36.4, up from 27.0 in April. Markit economist Chris Williamson, however, pointed to the unprecedented contraction of the US economy in the second quarter.

The Philadelphia Fed index improved to negative 43.1 in May, from negative 56.6 a month earlier. The index for leading economic indicators fell less sharply in April, while existing home sales fell sharply in the same month, by almost 18 percent.

The oil price rose 5 percent on Wednesday, after US crude oil supplies unexpectedly fell by 5 million barrels last week, while economists had previously forecast an increase of 2.4 million barrels. On Thursday, a barrel of WTI was worth more than one percent more at almost $ 34.

Company news plans to postpone its one-day Prime Day bargain fest until fall, The Wall Street Journal reported Thursday. The stock closed 2.1 percent in the min.

Gilead, along with partner Galapagos, released new research results Wednesday evening. They showed good study results with filgotinib in moderate to severe ulcerative colitis at large doses, according to Jefferies, but results were less convincing at lower doses. Gilead shares lost 0.5 percent.

Best Buy posted lower sales and profits in the quarter due to the corona outbreak. Adjusted earnings per share of $ 0.67 were higher than the $ 0.49 analysts had expected. The electronics chain withdrew the outlook for this year. The stock went down 4.3 percent on Thursday.

Macy’s has warned of a drop in sales and red numbers due to the corona crisis. “These are challenging times for the country, for retail and for Macy’s,” CEO Jeff Gennette said in an explanation. While Q1 2019 was still $ 5.5 billion in revenue, Macy’s expects $ 3.0 billion for the entire year. That will result in an operational loss of $ 0.9 billion to $ 1.1 billion, the department store chain warned. The share rose 6.0 percent.

S&P 500 index 2,948.51 (-0.8%)
Dow Jones index 24,474.12 (-0.4%)
Nasdaq Composite 9,284.88 (-1.0%)


Asian markets were listed in red on Friday, with the loss in Hong Kong being particularly noticeable.

Nikkei 225 20,402.50 (-0.7%)
Shanghai Composite 2,830.45 (-1.3%)
Hang Seng 23,160.11 (-4.6%)


The euro / dollar was trading at 1.0930 on Friday morning. At the close of the US stock markets on Thursday, the currency was trading at 1.0949.

USD / JPY Yen 107.41
EUR / USD Euro 1.0930
EUR / JPY Yen 117.39

00:30 Inflation – April (Jap)
08:00 Retail Sales – April (UK)
13:30 European Central Bank – Minutes (eur)

08:00 Burberry – Annual figures 2020 (UK)
13:00 Deere & Co – Second Quarter Figures (US)
00:00 Alibaba – Annual figures 2020 (Chi)
00:00 Foot Locker – First Quarter Figures (US)

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

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