European stocks open lower

ABM
Wednesday, July 13, 2022 06:58

In this article you will find information about: FR40, PORT20,

European equities are facing a lower opening on Wednesday. IG Markets predicts an opening loss of 55 points for the German DAX, a loss of 21 points for the French CAC 40 and a decrease of 16 points for the British FTSE 100.

European stocks closed mostly higher on Tuesday after oil prices continued to fall during the afternoon. The stock markets in Spain and Belgium fell.

“It was another challenging day for European markets, with concerns about a global economic downturn once again boosting sentiment. This looks set to trigger another shift to bonds, driving interest rates lower,” said CMC Markets analyst Michael Hewson .

Hewson and ING chief investment officer Simon Wiersma also pointed to concerns about an economic blow to China due to new lockdowns against the corona virus. China’s second-quarter GDP data released this week is expected to be “very poor,” Hewson said.

The German ZEW index for July came in negative at 45.8 against 27.6 in negative in June. This was a setback, the forecast was 34.0.

In its monthly report, OPEC maintained its expected growth in oil demand in 2022, for the third month in a row.

Company news

EDF won 5.8 percent after reports that the French government wants to pay more than 8 billion euros to nationalize the energy company.

The French security company Thales takes over OneWelcome from Amersfoort for 100 million euros. Thales shares closed 2.4 percent higher in Paris.

Shell lost 1.3 percent in London and Amsterdam, possibly due to lower oil prices, despite a buy recommendation from ING. Unibail-Rodamco-Westfield was under pressure following an advisory cut from RBC. The stock fell 0.8 percent.

BASF closed 3 percent higher. The German chemical giant on Monday released preliminary figures for the second quarter after opening hours, which were better than expected.

Euro STOXX 50 3,487.05 (+0.44%)
STOXX Europe 600 417.04 (+0.49%)
DAX 12,905.48 (+0.57%)
CAC 40 6,044.20 (+0.80%)
FTSE 100 7,209.86 (+0.18%)
SMI 11,069.83 (+0.39%)
AEX 670.68 (+0.23%)
BEL 20 3,738.88 (-0.89%)
FTSE MIB 21,485.70 (-0.38%)
IBEX 35 8,014.80 (-0.62%)

AMERICAN SHARES
Wall Street opens higher Wednesday, according to U.S. futures.

US equities closed lower on Tuesday ahead of crucial inflation figures on Wednesday, while oil prices took a significant step back.

Earlier in the day, stock prices remained close to Monday’s close. However, the dip in oil prices caused stocks of energy companies to fall and all other sectors fell due to fears of a recession. The strong dollar weighed on the mood.

Ten-year government bond yields fell from 2.99 to 2.96 percent as investors fled into safe government bonds.

According to market analyst Michael Hewson of CMC Markets, the focus this week is mainly on the US inflation data that will be released on Wednesday. Inflation is expected to rise to 8.8 percent in June, while core inflation is expected to reach 5.7 percent according to the market.

There is some optimism about grain and corn prices, which have fallen, but the question is whether this will be reflected in Wednesday’s inflation figures.

Traders are also wary of corporate earnings. The quarterly earnings season starts on Thursday.

Investors are also concerned about the corona situation in China, where new shutdowns are announced and an energy crisis threatens in Europe if Russia shuts down the gas tap completely.

It was calm on the macroeconomic front. Confidence among U.S. business owners fell in June. According to the National Federation of Independent Business, people have never been so pessimistic about the U.S. economy because of high inflation and the sound of a recession.

WTI oil has become significantly cheaper.

Company news

Boeing rose 7.5 percent on the news that 21 aircraft were delivered in the second quarter, up significantly from 95 in the previous quarter.

American Airlines closed even 10 percent higher after the airline maintained its second-quarter revenue forecast and calculated more revenue per mile flown.

PepsiCo exceeded expectations last quarter. Revenue expectations also rose while the rest of the outlook was maintained. The stock closed slightly lower.

Twitter has sent a letter to Elon Musk saying the attempts to terminate his $ 44 billion acquisition deal are “invalid and illegal”. Shares on Twitter rose 4 percent.

Demand for personal computers has not fallen that much in a decade, according to research firm Gartner. Deliveries fell by nearly 13 percent year-on-year in the second quarter.

The peloton stops producing its own fitness equipment. The company will expand its partnership with its Taiwanese manufacturer Rexon Industrial, which will then manufacture the majority of Peloton’s exercise bikes and treadmills. The stock closed 3.7 percent higher.

S&P 500 Index 3,818.80 (-0.62%)
Dow Jones Index 30,981.33 (-0.62%)
Nasdaq Composite 11,264.73 (-0.95%)

ASIA
Asian stocks rose on Wednesday.

Nikkei 225 26,432.98 (+ 0.4%)
Shanghai Composite 3,293.29 (+ 0.4%)
Hang Seng 20,974.99 (+ 0.6%)

CURRENCIES
Euro / dollar is trading at 1.0034. When US markets closed on Tuesday, the currency pair was still moving at 1.0033, and at the close of European markets, there were still 1.0069 on the plates.

USD / JPYYen 137.04
EUR / USD Euro 1.0034
EUR / JPY Yen 137.49

MACRO AGENDA:
04:00 Trade Balance – June (Chi)
08:00 Inflation – June final (German)
08:00 Industrial Production – May (UK)
08:00 Trade Balance – May (UK)
08:45 Inflation – June final (from)
10:00 IEA – Monthly Report (Off)
11:00 Industrial production – May (eur)
13:00 Mortgage Applications – Weekly (USA)
14:30 Inflation – June (USA)
16:30 Oil Warehouses – Weekly (USA)
20:00 Federal Reserve – Beige Book (USA)

COMPANY NEWS:
13:00 Delta Air Lines – US Q2


The FR40 share is traded live at € with a difference of † Today’s highest price is € with the low of €

The PORT20 share price is traded live at € with a difference of † Today’s highest price is € with the low of €


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