July 4-8 | Summer forecasts: Market news and a new earnings season

News

The summer festivities are here! The week begins with the 4th of July: Independence Day for the United States, which means the US equity market will be closed on Monday. The first week of July should be relatively calm on the markets, before a new earnings season which will begin on the 15th of the month. In the meantime, let’s take a look together at the relevant events for you, and for your precious wallet!

CropEnergies carbide

This German group, specializing in bioethanol, is already announcing that it expects a significant increase in its profits, which will be published on Wednesday July 6. These should be in line with a record year for the group, which is benefiting from a sharp rise in ethanol prices. An increase that should easily offset the increase in raw material and energy costs.

It’s also worth noting that CropEnergies is known to be generous with dividends. The group plans to increase its July 15 dividend to €0.45. Much higher than what most companies in the sector pay!

Interested in companies that are known to pay large dividends? Take a look at the following ETFs:

• All World Dividend ETF (Vanguard)
• EU Dividend ETF (iShares)
• Europe Dividend ETF (SPDR)

Please note that the payment of dividends is never guaranteed!

The OECD for a Productive Future

This Thursday 7 July and Friday 8 July, the Organization for Economic Co-operation and Development (OECD) is organizing its international productivity forum in Brussels, to discuss the challenges around productivity growth in the post-covid era. Among the guests will be representatives of the European Central Bank, and some big names from the economic sector.

If you invest in European equities, or European ETFs, then this event may be interesting to follow. It will focus on trade in the Eurozone, as well as potential economic restructuring for both inflation and unexpected climate emergencies. 

Airlines face a turbulent summer ahead

Whether it’s Charles de Gaulle in Paris, or Schipol in Amsterdam, the beginning of July generally coincides with the first mass vacation departures. While some are predicting a tourism boom, airlines are in dire straits due to understaffing and strikes, leading to mass flight cancellations.

The budget airlines are the most affected for the moment, but the trend has also been confirmed in national carriers, such as Air France-KLM, which already announced strikes in July, and Lufthansa, which has already canceled 2,200 flights for this summer.

Two French companies go public!

Two French companies will be introduced to the markets this week. Both the music streaming giant Deezer, and the audiovisual production juggernaut Banijay will face difficult market conditions, however they have raised enough money to get started. Will this great debut live up to expectations? Only time will tell.

Economic and earnings calendar

Monday – Trade balance in Germany (May). Unemployment rate in Spain (June).

Tuesday – Industrial production in France (May). PMI services index in Spain, France, Italy, Germany, and the Eurozone (June).

Wednesday – Non-monetary meeting of the European Central Bank. Industrial production in Spain (June). Unemployment rate in Ireland (June). CropEnergies quarterly results.

Thursday –  Inflation rate in the Netherlands (June). Industrial production in Germany (May). US weekly unemployment figures. OECD Global Productivity Forum.

Friday – Trade balance in France (May). Trade balance in Austria (April). Inflation rate in Ireland (June). OECD Global Productivity Forum.

We’ll be back next week with another edition of the BUX Breakdown. In the meantime, have a great week on the markets!

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This BUX Breakdown was written by Clémentine Pougnet.

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All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.