VOT Research Desk
Nov 4
Analytics and Recommendations
Friday saw an increase in European stock markets, with disappointing German manufacturing orders being overshadowed by the bullish tone in Asia on rumors of China reopening.
The DAX futures contract in Germany, the CAC 40 futures in France, and the FTSE 100 futures contract in the United Kingdom all traded 0.7% up at 04:40 ET (08:40 GMT). soared 0.7%.
Sharp gains in Asia on Friday on repeated rumors of an impending easing of China’s COVID-19 curbs gave European stocks a boost, emphasis the global economy and a key export market for Europe.
Friday saw a rise in European stock markets as optimism in Asia over rumors of a China reopening overshadowed weak factory orders in Germany.
The DAX futures contract in Germany traded 0.7% higher at 04:40 ET (08:40 GMT), the CAC 40 futures contract in France gained 0.8 percent, and the FTSE 100 futures contract in the United Kingdom gained 0.7 percent.
Friday’s strong gains in Asia gave European stocks a boost on renewed speculation that China might ease its COVID-19 restrictions, which could boost economic activity in the world’s second-largest economy and a major export market for Europe.
Hong Kong’s Hang Seng index gained more than 5% at the close, while China’s Shanghai Composite index gained 2.6% and the blue-chip Shanghai Shenzhen CSI 300 index gained 3.2%, both of which were trading close to three-week highs.
A change of this kind would be good for the world economy, which is especially needed in Europe because a drop in factory orders in Germany suggested that the largest economy in the Eurozone was quickly heading into recession.
According to new data, orders for the crucial German manufacturing sector fell by a startling 4.0 percent. This was the sixth decline in the previous seven months and the largest decline since March.
Later in the session, Eurozone services activity data are expected to show that this sector remains firmly in contraction territory.
However, the U.S. payrolls report, which is anticipated to show that nonfarm payrolls increased by 200,000 jobs in October, will be the day’s most important data release. A significant Fed hike in December could be confirmed if the upside surprises.
Societe Generale SA (EPA:) operates in the commercial sector. The third-largest listed bank in France and one of its European rivals both reported higher-than-expected third-quarter net income as a result of increased trading revenues due to market volatility. This resulted in a 4.2% increase in SOGN) stock.
BME: Telefonica TEF) stock gained 1.9% after the Spanish telecom operator reiterated its dividend commitments and full-year financial guidance in the face of rising inflation and slowing economic growth.
Oil prices increased on Friday as traders awaited news on the potential passage of a price cap on Russian exports, a plan aimed at squeezing funding to Moscow without cutting consumer supply, as a result of an easing dollar and fresh rumors that China plans to reduce COVID-related restrictions.
