At the start of the new trading week, European investors will mainly focus on the German parliamentary elections and the gains for the Social Democratic SPD on Monday. The uncertainty surrounding the bankruptcy of the major Chinese real estate developer Evergrande continues to haunt the financial markets, as do the power and gas problems in many countries.
The SPD, led by Finance Minister Olaf Scholz, won 25.7 percent of the vote. The centre-left party was thus narrowly ahead of the CDU/CSU. The Conservatives gained 24.1 percent. The Greens finished in third place with 14.8 percent. Negotiations to form a viable coalition are expected to be lengthy. The most obvious is a coalition of the SPD, the Greens and the liberal FDP, which Scholz prefers.
The focus is also on the central bankers’ meeting hosted by the European Central Bank (ECB) in Sintra, Portugal. That meeting begins Tuesday and will be attended by ECB President Christine Lagarde, US Federal Reserve Chair Jerome Powell and Bank of England Governor Andrew Bailey. Lagarde will also appear in the European Parliament on Monday.
In addition, several macroeconomic data will be released this week, including inflation in France and Germany. Furthermore, the Dutch chip companies ASMI and ASML are holding investor days this week.
European stocks look set to open higher on Monday. However, the Amsterdam AEX index took another step back on Friday, after the leading indicator finished above 800 points for the first time the day before. Elsewhere in Europe, negatives could also be seen on the price boards. On Wall Street, it was about limited movements.
Financial service provider Intertrust can count on attention among the companies on Damrak. Intertrust announced that it would buy back its own shares for 100 million euros. The company states that the current share price is too low and that Intertrust is undervalued.
It was also announced that Mirage Retail Group, the company behind the retail chains Blokker, Intertoys and Big Bazar, wants an IPO in Amsterdam next year. Mirage’s turnover is expected to reach 1.1 billion euros this year.
The euro was worth $1.1720 against $1.1714 at the close of trading in New York on Friday. The price of a barrel of US oil rose 1.4 percent to $ 75.99, and Brent oil became 1.3 percent more expensive at $ 79.10 a barrel.