Western European stock indexes are falling in the course of trading on Wednesday, investors took a wait-and-see attitude ahead of the final results of the US congressional elections.
According to preliminary media forecasts, the Republican Party will almost certainly regain the majority in the House of Representatives, while the battle for the Senate continues with approximately equal chances of victory for both parties.
That said, Democrats need 50 seats to win a majority in the upper chamber, while Republicans need 51, as Vice President Kamala Harris, who is from the Democratic Party, has the deciding vote in the absence of a majority in both parties.
The Stoxx Europe 600 composite index of the region’s largest companies was down 0.66 percent at 418.81 points by 11:50 a.m.
The British FTSE 100 stock index was down 0.32%, the German DAX was down 0.76% while the French CAC 40 was down 0.45%. Italian FTSE MIB and Spanish IBEX 35 are losing less than 0.1%.
In addition, market participants are waiting for the data on inflation in the U.S. in October, which may affect the Fed’s policy. The report will be published on Thursday, and analysts polled by Trading Economics on average expect it to indicate a slowdown in inflation in October to 8% from September’s 8.2%.
Also Wednesday, it was reported that inflation in China slowed in October to its lowest level since May. Consumer prices (CPI) rose 2.1% year on year last month after climbing 2.8% in September, while analysts on average had expected a more moderate slowdown to 2.4%.
Compared with the previous month, consumer prices in the PRC rose 0.1% in October after rising 0.3% a month earlier. Experts predicted that the growth rate will remain at the September level.
Shares of adidas AG are down 0.1%. The world’s second-largest sporting goods manufacturer cut its net profit nearly threefold in the third quarter despite a revenue increase and worsened its full-year forecast for the fourth time since the start of the year.
British department store chain Marks & Spencer Group Plc (M&S) was down 6.2%, although it boosted its pretax profit in the first half of fiscal 2023 and reaffirmed its full-year guidance.
Commerzbank AG’s capitalization is also down 6.2%. Germany’s second-largest bank cut net income and revenue in the third quarter of fiscal 2022, though both were better than analysts’ expectations.
The leader of growth among Stoxx 600 components are shares of Evotec SE, a German pharmaceutical company, which fell 9% on news about the company receiving a net loss for the first nine months of this year.
The most active growth in the index is demonstrated by securities of Swedish energy company Orron Energy (+3.8%) and German military-industrial company Rheinmetall AG (+3.6%).
Fifty-one universities from Ukraine have been selected for funding under the European Union’s Erasmus+ program, the Ministry of Education and Science reports.
“Thirteen projects involving 51 universities and other organizations from Ukraine have been selected for funding under the European Union’s Erasmus+ program for capacity development in higher education. A total of 145 projects won the competition,” the Ministry’s press service said in a statement.
It is noted that Ukraine has the largest number of projects in the Eastern Partnership region and is one of the top 12 countries participating in the program.
It is expected that the projects will contribute to the reforms of higher education in Ukraine based on the leading practices and experience of partners from the universities of the EU member states.
According to the report, the grant-coordinators of the projects are four Ukrainian universities: Bukovinian State Medical University, National University “Lviv Polytechnic”, State University “Zhytomyr Polytechnic”, Black Sea National University named after Petro Mohyla.
Also the partnership brings together 6 displaced universities from the temporarily occupied territories, five universities are partners in three projects: Melitopol State Pedagogical University named after Bogdan Khmelnitsky (displaced), National University “Chernihiv Polytechnic”, National Technical University “Dniprovska Polytechnic”, National University “Lviv Polytechnic”.
“Among the financed projects are 9 national and 4 international. Among project teams – 65 partners from 24 countries representing Austria, Albania, Belgium, Armenia, Greece, Georgia, Estonia, Spain, Italy, Kazakhstan, Latvia, Lithuania, Moldova, Germany, Poland, Portugal, Slovakia, Slovenia, Turkey, Uzbekistan, Croatia, Czech Republic, Montenegro, Sweden,” the report says.
“Erasmus+” is a program of the European Union, which through the support of lifelong learning works for the educational, professional and personal development of citizens of the European Union and beyond in education, training, youth and sports.
The exchange rate of US dollar weakly changes on Wednesday morning against major world currencies as investors await the outcome of the mid-term elections to the U.S. Congress.
The ICE index which shows the trend of the US dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, British pound and Swedish krona) is growing by less than 0.1%. Over the past three sessions, the indicator has fallen nearly 3%.
The euro/dollar pair was trading at $1.0073 by 7:55 a.m. qtr. versus $1.0075 at the close of Tuesday’s session.
The dollar/yen is up less than 0.1% at 145.77 yen from 145.69 yen at the end of last session.
The pound is trading at $1.1541, up from $1.1546 at the close of previous trading.
The Republican Party is expected to outperform Democrats in the midterm elections for U.S. Congress, according to U.S. media forecasts. According to CNN’s preliminary forecast, Republicans hold 176 seats in the U.S. House of Representatives, while Democrats have 121 seats. Politico predicts 158 seats for Republicans and 99 for Democrats. One party needs 218 seats out of 435 to control the House of Representatives.
In the Senate election, CNN and Politico predict that Republicans and Democrats are tied at 46 seats each. Republicans need 51 seats to control the Senate – with Vice President Kamala Harris, who is from the Democratic Party, having the right to vote in controversial situations.
In addition, market participants are waiting for data on October inflation in the U.S., which may influence the Fed’s decision. The report will be released Thursday, and analysts polled by Trading Economics on average expect it to point to a slowdown in inflation in October to 8% from September’s 8.2%.
Meanwhile, the mainland yuan gained 0.1% to 7.2445 per $1, while the offshore yuan, which is traded in Hong Kong, strengthened 0.2% to 7.2459 per $1.
China’s inflation slowed in October to its lowest level since May, we learned Wednesday. Consumer prices (CPI) rose 2.1 percent year on year last month after climbing 2.8 percent in September, while analysts on average had expected a more moderate slowdown to 2.4 percent.
Compared with the previous month, consumer prices in the PRC rose 0.1% in October after rising 0.3% a month earlier. Experts predicted that the growth rate would remain at the September level.
Stock indices of Asia-Pacific region (APR) countries do not show unified dynamics during the trading on Wednesday.
Investors are evaluating statistical data from China and waiting for the results of the US Congressional elections.
Meanwhile, the markets are pressed by the worsening situation with a coronavirus in China, which increases fears about potential new lockdowns in the country, writes Trading Economics.
The value of Japan’s Nikkei 225 index by 7:23 a.m. decreased by 0.6%.
The most significant decrease among the components of the indicator was demonstrated by quotations of shares of Nintendo Co. Ltd. (-7.5%). The Japanese manufacturer of game consoles and video games the day before reported a 34% increase in net profit in the first fiscal half, but worsened its annual sales forecast for the Switch console amid a lack of semiconductors.
Shares of several automakers are also down, including Mitsubishi Motors Corp. (-5%), Honda Motor Co. Ltd. (-0.9%) and Nissan Motor Co. Ltd. (-0.9%).
China’s Shanghai Composite index was down 0.4% by 7:35 a.m. and Hong Kong’s Hang Seng was down 1.3%.
The rate of inflation in China slowed in October to its lowest level since May this year. Consumer prices (CPI) rose 2.1% year-on-year last month after climbing 2.8% in September, according to China’s State Bureau of Statistics (SBS).
Analysts on average had expected growth to slow to 2.4 percent, according to Trading Economics.
China’s producer prices (PPI) declined 1.3% year on year last month after rising 0.9% in September. The analysts’ consensus forecast was for a 1.5% decline. Prices fell for the first time since December 2020 amid weak domestic demand and disruptions in production due to tight anti-commodity restrictions.
Leading the decline on the Hong Kong Stock Exchange were shares of biopharmaceutical Wuxi Biologics (Cayman) Inc. (-5.9%), electric car maker BYD Co. Ltd. (-5.8%) and automaker Geely Automobile Holdings Ltd. (-4.4%).
In addition, shares of Tencent (SPB: 700) Holdings Ltd. fell 3.6% and retailer Alibaba (SPB: BABA) Group dropped 1.3%.
South Korea’s Kospi index had gained 1% by 7:33 a.m.
One of the world’s largest chip and electronics maker Samsung Electronics Co. was up 0.5%, while carmaker Hyundai Motor rose 0.3%.
Australia’s S&P/ASX 200 index rose 0.6%.
Share prices of the world’s largest mining companies BHP and Rio Tinto increased by 2.1% and 2.4%, respectively.
The Club of Experts YouTube channel has released another video announcing the events which will take place in Ukraine and in the world from November 7 to 13, 2022. In the new release the founder of the Club of experts Maksim Urakin and co-host Olga Levkun analyzed the main events planned for the nearest future.
This week in Ukraine there will be a number of events devoted to the development of business, the implementation of new technologies in the agricultural sector, IT-innovations and other topics. Among these events we should mention the presentation of a free support tool for Ukrainians on digital security – Nadiyno online platform, as well as the Ukrainian-Slovak Business Forum to be held in Uzhgorod.
In the world this week there will also be a number of major conferences and forums. Several meetings of the EU Economic and Financial Affairs Council will be held in Brussels to discuss the EU budget for the next year; on November 10-11 in Washington the International Monetary Fund will hold its annual research conference devoted to the world economy; and in France there will be the Paris Peace Forum, designed to bring together heads of state, representatives of international organizations, business leaders and civil society. November 13, Bali will also host the Business 20 Summit (B20) on the theme “Promoting innovative, inclusive and shared growth,” which will be a prologue to the main global political event of this autumn: the G20 Summit.
The main sporting events in the next seven days will be the basketball qualifying matches for the World Championship and the Formula 1 Brazilian Grand Prix. Read more details about the future sports events on the portal Sport.ua. The full version of the video can be viewed at the link:
Subscribe to the Club of Experts channel here: https://www.youtube.com/channel/UC4plQ0XBaoLOKPIXrb1aMGQ.
ANNOUNCEMENTS, CLUB_EXPERTS, EVENTS, URAKIN, ЛЕВКУН, МАКСИМ_УРАКИН
US Permanent Representative to the UN Linda Thomas-Greenfield has arrived in Ukraine on a visit, said Nate Evans, Director of Communications and Press Secretary of the US Mission to the UN.
“The US Ambassador to the UN is in Kyiv for a day of meetings to reaffirm the unwavering US support for Ukraine as it defends its freedom and sovereignty in the face of Russia’s brutal and unprovoked invasion,” Evans tweeted on Tuesday.
While in Kyiv, Thomas-Greenfield will meet with Ukrainian government leaders to discuss the unwavering US commitment to Ukraine’s sovereignty and independence, according to the US Embassy in Ukraine. She will oversee efforts to document and preserve evidence of atrocities committed by Russian forces and hear first-hand accounts from survivors.
Ambassador Thomas-Greenfield will also discuss the global food security crisis exacerbated by Russia’s invasion and stress the urgent need to extend the Black Sea Grain Initiative into next year. She will also meet with humanitarian organizations working to meet the winterization needs of vulnerable populations affected by Russian attacks on energy and other civilian infrastructure.
