(ABM FN-Dow Jones) European stock markets are set to open higher on Thursday, after the US Federal Reserve left interest rates unchanged on Wednesday evening.
IG predicts an opening gain of 105 points for the German DAX and a plus of 47 points for the French CAC 40. The British FTSE looks to open 37 points higher.
European stock markets closed higher again on Wednesday, still waiting to see what the Fed would do.
In the UK, the industry continues to shrink and in the US, particular attention was paid to the figures from pay slip processor ADP. It was somewhat disappointing, with the number of jobs rising by 113,000 in October, after an unchanged increase of 89,000 a month earlier. However, economists expected a growth of 130,000 jobs.
Company news
In Amsterdam, Wolters Kluwer lost 2.8 percent after growth was somewhat disappointing. On the other hand, the outlook for this year was repeated.
In Brussels, index heavyweight Argenx led with a gain of 4.5 percent, after the company published better-than-expected figures on Tuesday.
In Paris, Worldline managed to gain 3 percent after several American private equity firms showed interest in sector peer Nexi. Adyen won 2.3 percent in Amsterdam.
In Frankfurt, the red light was for BASF, which was still suffering from the disappointing figures it presented on Tuesday. The stock closed almost 3 percent lower.
Danish wind turbine specialist Ørsted is halting the development of two American offshore wind farms. The decision leads to a billion-dollar write-down. The share lost about a quarter of its market value.
Euro STOXX 50 4,090.852 (+0.7%)
STOXX Europe 600 436.57 (+0.7%)
DAX 14,923.27 (+0.7%)
CAC 40 6,932.63 (+0.7%)
FTSE 100 7,342.43 (+0.3%)
SMI 10,503.89 (+1.1%)
AEX 722.26 (0.5%)
BEL 20 3,375.50 (+0.6%)
FTSE MIB 27,985.44 (+0.9%)
IBEX 35 9,075.00 (+0.6%)
US STOCKS
The American stock markets will have a green opening on Thursday.
The American stock markets closed higher on Wednesday after the Fed left interest rates unchanged as expected and hopes are growing that the interest rate peak has been reached.
The markets responded positively to Jerome Powell’s words after the interest rate decision, as usual he kept all options open.
Powell said, among other things, that he expects the economy to weaken in the coming months and that it will help further reduce inflation, although the Fed does not expect a recession. He also pointed out that the rise in bond yields could limit further interest rate increases, but only if long-term interest rates remained “persistently” high.
There was also economic news from pay slip company ADP. The October jobs report showed job growth of 113,000, up from 89,000 a month earlier. 130,000 new jobs were expected.
Job growth was again lower than expected. “The catch-up of small companies compared to large firms has come to a standstill, given the growth there by 18,000 and by 19,000 among small companies,” said market analyst Philip Marey of Rabobank. The official jobs report will follow on Friday.
The number of vacancies rose to 9.55 million in September, half a million more than in August.
It also turned out that American industry is still struggling, even though construction expenditure had increased. According to ISM, the industry shrank at a faster pace last month. S&P Global’s purchasing managers index showed a pause.
The US Treasury Department also announced that it will auction $112 billion in government bonds next week to refinance the national debt, which is $9 billion more than a quarter earlier. That wasn’t too bad and helped to relax the interest rate markets.
Oil prices fell again on Wednesday after the Federal Reserve left interest rates unchanged, while the market kept a close eye on the latest developments in the conflict between Israel and Hamas.
A December future for a barrel of West Texas Intermediate crude oil closed 0.7 percent lower at $80.44 on the New York Mercantile Exchange.
Risers and fallers
“Estee Lauder shares fell almost 19 percent after a profit warning. “Although we had a better-than-expected first quarter, we are lowering our expectations for the fiscal year, based on the increased headwinds,” said CEO Fabrizio Freda, pointing to slower sales growth of beauty products among travelers in Asia and mainland China. The stock has been struggling for some time and has lost almost 60 percent of its value this year.
There were also quarterly figures from Dupont, Kraft Heinz and Yum Brands, among others. Kraft Heinz raised its profit forecast, but adjusted its sales outlook downwards. The share rose 2.3 percent.
Dupont also lowered its forecast for this year’s revenue, while its profit forecast remained more or less the same. The share fell by more than 8 percent.
The Yum Brands share hardly reacted after profit had risen, but turnover was somewhat disappointing.
Advanced Micro Devices gained almost 10 percent after the company reported a stronger-than-expected profit for the past quarter after trading hours on Tuesday, but did not surprise with its revenue outlook. Initially, the share fell, but after the company spoke positively about artificial intelligence in an explanation of the figures later in the evening, a positive price reaction followed.
Caesars Entertainment fell 1.1 percent after figures. Revenue rose nearly 4 percent to $2.99 billion, better than analyst expectations.
First Solar’s revenue of $801 million fell short of expectations of $904 million. The profit forecast was adjusted upwards and the share rose fractionally.
Match Group lost more than 15 percent after a profit warning, partly due to the challenging economic climate.
Paycom Software also disappointed significantly with expected revenue growth that is half of what Wall Street expected. The share fell by more than 38 percent.
WeWork plans to file for bankruptcy next week, The Wall Street Journal reported. The share almost halved in value.
After fair
Qualcomm exceeded expectations in the past quarter and adjusted expectations upward. Qualcomm shares were 3.6 percent higher in after-hours electronic trading on Wednesday.
Paypal performed better than expected in the past quarter, but was more cautious for the current quarter. PayPal shares were up 1.4 percent in after-hours electronic trading on Wednesday.
DoorDash performed better than expected in the third quarter of 2023, but expects capital expenditure to remain high. DoorDash shares rose 1.3 percent in regular trading and rose 7.6 percent after hours.
S&P 500 index 4,237.86 (+1.0%)
Dow Jones index 33,274.58 (+0.7%)
Nasdaq Composite 13,061.47 (+1.6%)
ASIA
The Asian stock markets were mostly higher on Thursday.
Nikkei 225 31,961.89 (+1.1%)
Shanghai Composite 3,022.11 (0.0%)
Hang Seng 17,268.24 (+1.0%)
CURRENCIES
The euro/dollar was trading at 1.0596 this morning. On Wednesday evening, the currency pair was trading at 1.0560.
USD/JPY Yen 150.44
EUR/USD Euro 1.0596
EUR/JPY Yen 159.39
MACRO AGENDA:
09:00 Purchasing managers index industry – October (NL)
09:15 Purchasing managers index industry – October (Spa)
09:45 Purchasing managers index industry – October (Ita)
09:50 Purchasing managers index industry – October final. (Fra)
09:55 Purchasing managers index industry – October final. (Gld)
09:55 Unemployment – October (Germany)
10:00 Purchasing managers index industry – October final. (EUR)
10:00 Norges Bank – Interest rate decision (Nor)
13:00 Bank of England – Interest rate decision (UK)
1:30 PM Aid Applications – Weekly (US)
1:30 PM Labor Costs – Third Quarter VLPG (US)
3:00 PM Factory Orders – September (US)
COMPANY NEWS:
07:00 ING – Third quarter figures
08:00 Shell – Third quarter figures
22:00 Galapagos – Third quarter figures
00:00 GBL – Third quarter figures
07:00 Adecco – Third quarter figures (Zwi)
07:00 Deutsche Lufthansa – Third quarter figures (Dld)
07:00 Zalando – Third quarter figures (Dld)
12:00 Eli Lilly – Third Quarter Numbers (US)
12:00 Moderna – Third quarter figures (US)
12:00 Nikola – Third quarter figures (US)
9:00 PM Starbucks – Third quarter figures (US)
21:30 Apple – Fourth quarter figures (US)
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 and 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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