European stock markets turn higher and with the focus on the US
Although the withdrawal of stimulus continues to capture the interest of all investors on one side and the other of the Atlantic, the truth is that today the European stock markets will also have to be aware of data such as the annualized GDP of the United States and the economic bulletin of the Central Bank European.
The EuroStoxx50 opens with increases of 0.41%, the German Dax 30 adds 0.45%; the French Cac 40, 0.41%; the FTSE Mib, 0.22% and the London FTSE 100, 0.05%.
Bank and retail stocks lead earnings in Europe this Thursday, as investors focused on an economic rebound against the backdrop of fears of a reduction in monetary stimulus.
During yesterday’s session it was the most cyclical cut-off values that performed the best, especially those linked to mineral raw materials and gas and oil, all of them encouraged by the rises experienced by the prices of these products. Conversely, more defensive cutoffs lagged behind, with earnings leading the declines.
Today the IFO indices for June are published, which assess the perception that German companies have of the progress of the country’s economy, as well as the French sector confidence indices, for the same month.
Analysts expect significant advances in all these business confidence indicators, something that would confirm the good readings for the region’s PMIs for June, already discussed.
For its part, in the US, and in the afternoon, the final GDP reading for 1Q2021 will be released, for which no surprises are expected (+ 6.4% in annualized terms and in relation to 4Q2020), as well as Durable goods orders for May (preliminary reading) and initial requests for weekly unemployment benefits, a figure that is a good approximation of weekly unemployment. We will have to be very attentive to this last figure, since last week it rose unexpectedly, which caused some tension in the markets, highlighted from Link Securities.
ECB Vice President Luis de Guindos said: “I expect growth in the euro area to accelerate significantly in the second half of the year.” He advanced that the recommendation to raise dividends by the banks will come “sooner rather than later in view of the strength that the recovery is gaining.
Regarding economic data for the euro area, the manufacturing PMI stands out: 63.1 vs 63.1 previously vs 62.1 expected. PMI services: 58 vs 57.8 expected and vs 55.2 previously. Composite PMI: 59.2 vs 58.8 expected and vs 57.1 previous.
Economic data for Germany. Manufacturing PMI: 64.9 vs. 63 expected and vs. 64.4 prior. PMI services: 58.1 vs vs 55.5 expected and vs 52.8 previous. Composite PMI: 60.4 vs 57.5 expected and vs 56.2 previous.
Economic data for France. Manufacturing PMI: 58.6 vs. 59.0 expected and vs. 59.4 prior. PMI services: 57.4 vs 59.4 expected and vs 56.6 previous. Composite PMI: 57.1 vs 59.0 expected and vs 57.0 previous.
Economic data for the United Kingdom. Manufacturing PMI: 64.2 vs 64 expected. and vs 65.6 above. PMI services: 61.7 vs 62.8 expected and vs 62.9 previous. Composite PMI: 61.7 vs 62.5 expected and vs 62.9 previous.