Live Markets: Before the bell: futures dip, preparing for earnings season

Essity AB (publ)

23/01/2025 07:40

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    BEFORE THE BELL: FUTURES DIPS, PREPARING FOR EARNINGS SEASON
    European shares were set for a softer start on Thursday as enthusiasm over Donald Trump's AI
investment push ebbed following an industrial stocks-led rally the day before that drove both
the STOXX 600 and Germany's DAX to lifetime highs.
    Measures by China to boost its stock market reassured investors and might cushion any losses
during the session ahead. Futures on the EuroSTOXX50 and FTSE indices fell 0.1-0.3%, about 30
minutes before the cash market open.
    S&P 500 derivative contracts were also a touch lower after the index hit an intrday all-time
high on Wednesday, lifted by AI optimism and Netflix results.
    Overnight, Beijing announced plans to channel hundreds of billions of yuan from state-owned
insurers into shares, measures that come soon after Trump's threat to slap a 10% punitive duty
on Chinese imports.
    Meanwhile in Europe, traders were preparing for the start of the earnings season, which is
expected to show a third straight quarter of profit growth. STOXX earnings are estimated to have
risen 1.5% or 4.9% excluding energy in Q4, per LSEG IBES.
    Among the early releases, Swedbank  SWEDa.ST  beat dividend and operating profit
expectations, helped by robust interest income and solid credit quality. "NII was the key
positive of the result...", wrote Jefferies, also noting a lack of new information on a U.S. DoJ
investigation. 
    Still in Sweden, high raw material costs and a strong U.S. dollar hurt margins at hygiene
products maker Essity  ESSITYa.ST . Its Q4 core earnings came below expectations.
    Eyes were also on Volkswagen  VOWG_p.DE . In a pre-close call before its official release on
March 11, the automaker told its target of a 6% margin on the VW passenger car brand was now
more realistic in the "medium term".
    
    (Danilo Masoni)
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