(ABM FN-Dow Jones) European stock markets open higher on Thursday.
IG predicts an opening gain of 52 points for the German DAX, a plus of 27 points for the French CAC 40 and a gain of 22 points for the UK FTSE 100.
European stock markets closed higher on Wednesday. Sentiment was supported by hopes of falling inflation and less aggressive rate hikes by the Federal Reserve.
Investors are already looking ahead to the monthly US inflation data due on Thursday afternoon and the upcoming earnings season, which starts on Friday with a series of corporate reports from major US banks, including Bank of America, JPMorgan and Citigroup.
“Markets are anxiously awaiting US inflation data, which will determine the extent of Fed rate hikes in February,” Danske Bank said, adding that while markets expect a 25 basis point hike, the likelihood of a 50 basis point increase should not be underestimated.
“The question among investors is how low inflation rates will get to the US economy, or how close inflation can get to the Fed’s target. More importantly, how long will it take for inflation to reach that level,” the analyst said. Naeem Aslam from AvaTrade.
Activist shareholder Bluebell Capital has built up a stake in Bayer and is now pushing for a split. Bloomberg wrote this based on sources. Bayer shares were 3.8 percent higher.
In Frankfurt, property company Vonovia rose 6.2 percent, Siemens Energy rose 5.4 percent, while Hannover Rueck fell 1.8 percent.
In Paris, Kering was 3.3 percent higher. Eurofins Scientific fell the most with a loss of 4.9 percent.
In Amsterdam, Unibail-Rodamco-Westfield was the strongest climber. The stock rose 3.1 per cent. Adyen dangled at the bottom with a loss of 3.0 percent after a negative analyst report from Bank of America.
Euro STOXX 50 4,099.76 (+1.0%)
STOXX Europe 600 447.41 (+0.4%)
DAX 14,947.91 (+1.2%)
CAC 40 6,924.19 (+0.8%)
FTSE 100 7,724.98 (+0.4%)
SMI 11,246.01 (+0.8%)
AEX 738.83 (+0.8%)
BEL 20 3,899.13 (+1.3%)
FTSE MIB 25,546.86 (+0.7%)
IBEX 35 8,726.30 (+0.2%)
Wall Street is opening slightly higher, according to U.S. futures, after also closing higher on Wednesday.
Investors were particularly looking forward to the US inflation report on Wednesday, which will be published on Thursday. Investors will be looking for more evidence that inflation continues to fall, giving the Fed an opportunity to ease monetary policy soon.
“Investors appear to be pricing in expectations that inflation will slow further,” Hargreaves Lansdown said.
“Reports of the easing of global supply chain bottlenecks and the reopening of China mean markets are holding renewed optimism. However, there is a ceiling to this good mood. Equity markets remain highly sensitive,” added economists at Hargreaves Lansdown.
Fed officials remain resolute in emphasizing that they are ready to continue their aggressive tightening policies to ensure that high inflation is subdued.
On a macroeconomic level, it was announced on Wednesday that the number of mortgage loan applications in the US increased last week. The market index rose from 184.5 to 186.7.
February futures for a barrel of West Texas Intermediate crude closed 3.1 percent, or $2.29, higher on the New York Mercantile Exchange at $77.41 on Wednesday, even as the latest data from the U.S. Energy Agency EIA showed that the U.S. Crude oil inventories rose sharply last week.
On a macroeconomic level, two releases are scheduled for Thursday in the US. Inflation data for December and the weekly aid applications will be published before the market closes.
Bed Bath & Beyond plans to lay off even more staff to further cut costs after the company’s liquidity and earnings further deteriorated in the latest quarter. The stock rose almost 60.0 per cent.
Blend Labs will save more than $100 million in costs, including by sending 28 percent of its staff back home to America. The stock rose around 0.2 per cent.
Rivian Automotive has said goodbye to a number of top executives after production targets were not met in 2022. The share was approximately 3.5 percent higher.
Warner Brothers Discovery fell 0.2 percent. Bank of America issued a buy rating with a $21 price target.
Tesla is considering a $775 million plant expansion in Texas. It’s a sign the electric carmaker is looking to keep growing despite investor concerns about declining demand for Elon Musk’s company’s cars.
Apple was least affected by the sharp drop in computer shipments during the holiday season, according to data from the International Data Group. Worldwide, the number of computers fell by 28 percent to 67.2 million units in the fourth quarter of last year.
Quarterly earnings season kicks off Friday with a number of major U.S. banks, including JPMorgan Chase and Bank of America. Analysts on average expect a 15 percent lower profit for the banks, which would still be $28 billion.
Wells Fargo must drastically cut its mortgage lending after a series of scandals and a record fine. The bank mainly focuses on existing customers and will no longer work with intermediaries.
S&P 500 Index 3,969.61 (+1.3%)
Dow Jones Index 33,973.01 (+0.8%)
Nasdaq Composite 10,931.67 (+1.8%)
Asian stock markets were marginally higher on Thursday.
Nikkei 225 26,450.35 (+0.0%)
Shanghai Composite 3,165.19 (+0.1%)
Hang Seng 21,451.76 (+0.1%)
Euro/dollar was quoted at 1.0763. At the close of the US stock markets on Wednesday, the currency pair was still trading at 1.0756, and at the close of the European stock markets, there was still a position of 1.0753.
USD/JPY Yen 131.53
EUR/USD Euro 1.0763
EUR/JPY Yen 141.55
06:30 Bankruptcies – December (NL)
03:30 Consumer and producer prices – December (Chi)
14:30 Inflation – December (USA)
14:30 Support Requests – Weekly (US)
00:00 TSMC – Figures from the fourth quarter (Tai)
Source: ABM Financial News
From Beursplein 5, the editorial team at ABM Financial News closely follows developments on the stock exchanges, and in particular the Amsterdam Stock Exchange. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.