Stock Market News (European Open) – European equities rise for 3rd straight day; Futures point to higher open on Wall Street
Posted on September 1, 2017 at 9:22 am GMTAndreas Georgiou, XM Investment Research Desk
Most Asian indices advanced today, reflecting the risk-on sentiment that remains in equity markets after tensions in the Korean peninsula are seen as abating, at least for the time being. The Nikkei 225 finished the day 0.2% higher and the broader Japanese index, the Topix, 0.1% higher. Australia’s S&P/ASX 200 closed 0.2% up, the Shanghai Composite 0.2% up as well on a day when Caixin’s manufacturing PMI for mainland China was released at its highest since February, pointing to solid growth. Hong Kong’s Hang Seng was down, though only marginally.
During morning European trading hours, all major indices in Europe opened in positive territory for the third day in a row. The FTSE 100, DAX and CAC 40 were up by 0.3%, 0.5% and 0.8% respectively, while the pan-European Stoxx 600 and the blue-chips Stoxx 50 both edged up by 0.5% and 0.4% respectively.
Swedish car maker Volvo and French media company Vivendi were the Stoxx 600’s best performing stocks, being up by 7.1% and 4.8% respectively in early European trading. The former was put on a positive footing after the company set new financial targets, such as an operating margin in excess of 10% (nearly double the 15-year average) over the business cycle, which were perceived as bullish by investors. The latter rose after the corporation confirmed its outlook, reporting stronger-than-expected profit growth for the year. Vivendi is also a CAC 40 constituent stock and was the French blue-chip benchmark’s best performing stock as well.
On the downside, the Stoxx 600’s worst performer was UK pharmaceuticals firm Indivior, being down by a massive 39.3% in early hours of trading. The company lost a court battle (it today said that it plans to appeal against the ruling) that could open the way to a rival firm to steal market share from its opiod addiction treatment, namely its Suboxone Film medicine.
Futures markets were last projecting a higher open on Wall Street as Dow Jones contracts were last trading by more than 0.1% higher on the day, while respective S&P 500 and Nasdaq 100 contracts were 0.1% up. Among others, the US will today see the release of its much-awaited August nonfarm payrolls report.