- August 7, 2024
- By: Admin1_blog
- EU Market, Indices
Sophie Kiderlin & Holly Ellyatt
LONDON — European stocks were higher on Wednesday as global markets look to rally after a rout on Monday.
The pan-European Stoxx 600 was up 0.86% at 9:42 a.m. London time, with most regional bourses and sectors gaining. Autos added 1.84%, while construction and material stocks rose 1.75%.
Regional markets have seesawed since sharp global market declines on Monday; on Tuesday, European opened higher but turned lower later in a choppy trading session.
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However, Wall Street’s rebound on Tuesday, which broke a three-day stretch of losses, is helping to lift global sentiment. Asia-Pacific markets were up overnight, while U.S. stock futures were higher on Tuesday evening.
Puma shares tumble 11%
Puma shares tumbled over 11% on Wednesday after the sportswear company announced its second-quarter earnings and narrowed its outlook for earnings before interest and tax for the full year.
At 8:46 a.m. London time, shares were 11.1% lower.
The company now expects EBIT to come in between 620 million euros and 670 million euros ($677 million and $732 million), down from the previous estimate of 620 million euros to 700 million euros.
Puma cited “the external factors of higher freight costs, changing duties and continued muted consumer sentiment, especially in China,” as factors behind the change.
Second-quarter financial results were in line with expectations, the company said.
— Sophie Kiderlin
Shares of Wegovy maker Novo Nordisk slide after earnings miss
Novo Nordisk shares pulled back on Wednesday after the Wegovy maker posted weaker-than-expected net profit in the second quarter and trimmed its operating profit outlook.
Shares fell close to 7% as markets opened and were last down 4.5% at 8:20 a.m. London time.
The pharmaceutical giant said its net profit came in at 20.05 billion Danish kroner ($2.93 billion) in the three months to the end of June. A LSEG aggregate forecast had projected the figure would come in at 20.9 billion Danish kroner.
Novo Nordisk also trimmed its operating profit outlook for full-year 2024, saying growth was now anticipated to come in between 20% and 28%, rather than the previously expected 22% to 30% range.
European markets open higher
European markets opened higher on Wednesday, with the pan-European Euro Stoxx 600 adding 0.37% as of 8:23 a.m. London time.
Most sectors were last trading in the green. Banks rose 1.17%, while healthcare stocks shed 0.47%.
Bourses across the region also picked up, with the U.K.’s FTSE 100 adding 0.57%, Germany’s DAX rising 0.27% and France’s CAC 40 gaining 0.46%.
— Sophie Kiderlin
What to look out for in Europe today
European stocks are expected to rebound at the open on Wednesday. Here are the opening calls:
The U.K.’s FTSE index is expected to open 102 points higher at 8,120, Germany’s DAX up 208 points at 17,526, France’s CAC 40 up 104 points at 7,220 and Italy’s FTSE MIB up 437 points at 31,670, according to data from IG.
On Wednesday, earnings are expected from Maersk, Novo Nordisk, Commerzbank, Siemens Energy, Continental, Puma, Illimity, Ahold Delhaize, ABN AMRO, Legal & General, Glencore and WPP.
European data releases include the U.K.’s Halifax House Price Index and German industrial production and trade balance figures.
— Holly Ellyatt
Bank of Japan deputy governor says central bank won’t raise rates while markets are unstable
The Bank of Japan won’t raise rates while markets are volatile, deputy governor Uchida Shinichi said in a speech Wednesday.
Japanese markets have whipsawed this week, seeing both their worst sell-off since the 1987 Black Monday crash as well as the best day since October 2008.
Uchida noted that unlike Europe or the United States, “Japan’s economy is not in a situation where the Bank may fall behind the curve if it does not raise the policy interest rate at a certain pace.”
“Therefore, the Bank will not raise its policy interest rate when financial and capital markets are unstable,” he said.
— Christine Wang
Futures rebound as Asian stocks rise
U.S. stock futures reversed to trade higher as Asian stocks rose in morning trading.
Dow futures rose 219 points or 0.56% while S&P 500 futures rose 0.67%. Nasdaq 100 futures jumped 0.97%.
The benchmark Nikkei 225 in Japan rose 2%, while the broad-based Topix jumped 3%. The Japanese yen weakened against the dollar, trading around 146.
— Christine Wang
Source : cnbc