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European Stock Futures Mixed; SAP, Next Raise Forecasts Amid Earnings Rush

European Stock Futures Mixed; SAP, Next Raise Forecasts Amid Earnings Rush

21 Jul 2021

European stock markets are seen opening mixed Wednesday, stabilizing after the week’s volatile start with earnings season continuing in strong style

At 2:10 AM ET (0605 GMT), the DAX Futures contract in Germany traded 0.1% lower, while CAC 40 Futures in France climbed 0.3% and the ftse 100 fUTURES contract in the U.K. rose 0.2%.

Stock indices in Europe closed higher Tuesday, with the DAX up 0.6%, the CAC 40 up 0.8% and the FTSE 100 0.5% higher, rebounding after Monday’s sharp losses after fears the recent surge of Covid-19 cases will derail the global economic recovery.

While the uncertainty caused by the increase of global coronavirus injections, caused mainly by the highly-transmissible delta variant, remains, investors are also turning their eyes towards the quarterly earnings season.

Julius Baer  is likely to be in the spotlight Wednesday after the Zurich-based wealth manager posted a 23% rise in half-year net profit to 606 million Swiss francs ($658 million), while drugmaker Novartis  beat expectations for its second-quarter profit while keeping its 2021 guidance.

There were also upward revisions to guidance from SAP , Europe’s largest software company, and U.K. retailer Next , the latter saying that sales through June had been “materially ahead” of expectations. Paints maker Akzo Nobel  also beat forecasts but warned of enduring issues with raw material costs and availability.

On the flip side, German auto maker Daimler  said that the global semiconductor chip shortage will continue to affect its business in the second half of 2020 and that its third-quarter car sales will be the same or below the second quarter.

The FTSE MIB climbed up by 1.23% to 24,399.82. In the cash markets, the DAX  Germany was trading up 0.51%  to 15,294.17. CAC 40  in France rose by 1.24% to 6,425.60 while the FTSE 100  in the U.K. were up by 1.60% to 6,994.88. ,at the time of writing.