(ABM FN-Dow Jones) The European stock markets are expected to open higher on Wednesday.
IG anticipates an opening gain of 152 points for the German DAX, a plus of 64 points for the French CAC 40 and an increase of 60 points for the UK FTSE 100.
The European stock markets were also closed on Tuesday, just like Monday.
European stock markets set their sights on Tuesday to reopen economies and ignored race riots in the United States following George Floyd’s violent death in Minneapolis.
Investors continued to bet on an economic recovery on Tuesday, as US and European purchasing manager indices showed an improvement on Monday in May, although contraction continues. Economic contraction may last shorter than economists expect, said Unigestion economist Guilhem Savry.
No macro publications were scheduled on Tuesday.
France will experience a deep recession in 2020 due to the corona crisis, but the economy will recover in 2021, French Economy Minister Bruno Le Maire said in an interview with French radio station RTL on Tuesday.
In addition, the market is looking forward to the interest rate decision of the European Central Bank next Thursday. The market expects the central bank to increase the pace of bond purchases, which could further stimulate investors’ risk appetite.
Unibail-Rodamco-Westfield rose Tuesday, after the real estate fund reported 65 of the 90 shopping centers that the group operates worldwide are now open again. In mid-June, at least 87 percent of the shopping centers will be operational again. The stock won 9.4 percent.
Volkswagen has completed an investment of $ 2.6 billion in Argo AI, enabling the German automaker to expand the startup’s expansion plans for self-driving cars in Europe. The Volkswagen share rose 6.1 percent.
Carrefour acquires Welcome Taiwan from Dairy Farm International in an effort to accelerate growth. The stock was listed flat in Paris.
Berenberg has put the TUI share on the sales list, after the price target has decreased from £ 9.50 to £ 3.50. The price of the TUI share was 1.2 percent higher on Tuesday.
Financials were in demand all over Europe. ING won 3.1 percent, Deutsche Bank 5.5 percent and Société Générale 3.2 percent.
Euro STOXX 50 3,159.02 (+ 2.6%)
STOXX Europe 600 359.77 (+ 1.6%)
DAX 12,021.28 (+ 3.8%)
CAC 40 4,858.97 (+ 2.0%)
FTSE 100 6,220.14 (+ 0.9%)
SMI 9,951.45 (+ 1.2%)
AEX 546.12 (+ 1.2%)
CALL 20 3,320.42 (+ 1.6%)
FTSE MIB 18,971.09 (+ 2.4%)
IBEX 35 7,408.10 (+ 2.6%)
According to US futures, Wall Street will open in the plus on Wednesday, after a higher lock on Tuesday.
As such, U.S. stock markets continue Monday’s uptrend, with investors turning their attention to the reopening of the economy, rather than the riots that have gripped the nation since George Floyd’s violent death in Minneapolis.
Some metropolitan areas, including New York and Los Angeles, have no night time curfews. Trump has called for tougher government action against the turmoil and said he sent thousands of armed soldiers and law enforcement officers to the capital.
The S&P rose five times in the past six sessions, spurred by signals that the downturn in the US economy has bottomed and hopes that the corona virus will be brought under control.
“Stock markets are pricing in a smooth recovery in the economy, although it may be overly optimistic and some potential risks have been overlooked,” said Union Banking strategist Anthony Chan. “Those dangers include tensions between the United States and China and the possibility of new outbreaks of the coronavirus, which could lead to a resumption of lockdown measures,” he added.
Still, the U.S. economy may take most of the decade to fully recover from the pandemic and related shutdown, a U.S. fiscal agency said. “The output is expected to be at previously predicted levels in the fourth quarter of 2029,” said the Congressional Budget Office.
On a macroeconomic level, it was announced on Tuesday that activity in New York in May fell less sharply than in April, when the lowest point ever was reached. The purchasing managers index for the current circumstances rose from 4.3 in April to 19.5 last month.
The July future for a barrel of crude closed on the New York Mercantile Exchange on Tuesday at $ 1.37 higher, or 3.9 percent, at $ 36.81.
On a macroeconomic level, six publications are on the agenda in the United States on Wednesday. The weekly mortgage applications and the ADP jobs report will be published in advance, followed by two purchasing manager indices for the services sector, the factory order and the weekly oil stocks report.
Facebook employees are unhappy with their CEO Mark Zuckerberg’s decision to leave Donald Trump’s posts about the social network riots, according to employees, violating the rules about inciting violence.
Stitch Fix, a personal grocery shopping and apparel retailer, reported firing 1,400 stylists, about 18 percent of total workforce, on Monday. The stock rose nearly 3.0 percent.
Starbucks will further reduce employee hours and align it with the gradual reopening of its U.S. operations. The coffee chain does not expect sales to increase enormously with the relaxation of the corona measures. Starbucks does not expect sales to recover until autumn. The share fell by 0.9 percent.
S&P 500 index 3,080.82 (+ 0.8%)
Dow Jones index 25,742.65 (+1.1)
Nasdaq Composite 9,608.37 (+ 0.6%)
Asian stock markets were higher overall on Wednesday.
The purchasing managers index for the Japanese services sector has risen, but still indicates contraction. That for the Chinese services sector rose sharply and, with its highest level since October 2010, points to growth again.
Nikkei 225 22,516.57 (+ 0.9%)
Shanghai Composite 2,936.38 (+ 0.5%)
Hang Seng 24,283.37 (+ 1.2%)
The euro / dollar was listed at 1.1202. At the close of the US stock exchanges on Tuesday, the currency pair moved to 1.1166 and at the closing of the European stock markets there was still a position of 1.1174 on the plates.
USD / JPY Yen 108.57
EUR / USD Euro 1.1202
EUR / JPY Yen 121.61
00:30 Purchasing manager index services – May final. (Jap)
03:45 Purchasing manager index services Caixin – May (Chi)
09:15 Purchasing manager index services – May (Spa)
09:45 Purchasing manager index services – May (ITA)
09:50 Purchasing manager index services – May final. (Fra)
09:55 Purchasing manager index services – May final. (Dld)
09:55 Unemployment – May (Dld)
10:00 Services purchasing manager index – May final. (EUR)
11:00 Producer prices – April (eur)
13:00 Mortgage Loans – Weekly (US)
14:15 Job report ADP – May (USA)
15:45 Purchasing managers index services Markit – May final. (US)
16:00 Purchasing manager index services ISM – May (US)
4:00 pm Factory Orders – April (US)
16:30 Oil Stocks – Weekly (US)
13:00 Campbell Soup – Third quarter figures (US)
ABM Financial News; [email protected]; Editors: +31 (0) 20 26 28 999.
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