On Prinsjesdag, the AEX, led by Shell, once again managed to gain ground. Investors felt supported by economic boosters from China and Germany. Banks did not share in the positive sentiment. SBM excelled in the Midkap.
After a flat start, the AEX index got the wind in its back and ended 0.6% higher at 555.95 points. The AMX rose 0.8% to 816.96 points.
Elsewhere in Europe the stock <strong>market indicators also turned green. The British FTSE 100, the French CAC and the German DAX advanced to 1%.
In the morning, the macro news from Germany came in better than expected. Investors‘ confidence in the outlook for their own economy this month was stronger than had been anticipated. The macro figures from China were also disappointing. Jos Versteeg, analyst at InsingerGilissen, emphasises that the growth in retail sales in the Asian country in particular is encouraging. That was for the first time since the outbreak of the corona-andemic
Furthermore, we are waiting for the US interest rate decision to come out tomorrow evening. According to Philip Marey, economist at Rabobank, the so-called dotplot will be in the spotlight, giving an indication of the outlook for interest rates in the medium term. In our forecast, we take into account that the Fed will not raise interest rates again until the end of 2024. Powell will also comment on the previously announced flexibilisation of the inflation target in the explanatory memorandum
Marey anticipates that the stock markets will experience some turbulence in the fourth quarter. He points out that there could be a period of turbulence, especially after the US presidential elections. Due to the enormous polarisation in US politics, it is not inconceivable that the presidential candidates will contest the result, especially as there is a lot of postal voting. A possible second coronavirus outbreak in the US during the flu season is also a source of uncertainty. In addition, Trump may also take the blunt axe to the Chinese and there is a chance that the Republican and Democrats will not come out at all with the new fiscal stimulus
Versteeg is still looking positively at the stock market. There is some more volatility in the market, but you can see investors shrugging off the dust of last week’s tech correction. It is expected that tech funds will continue to pull the wool over the cart as they continue to benefit from massive home-working from the corona crisis
Shell at the forefront
Meal delivery service Just Eat Takeaway improved by 0.9% at the Dutch main funds, following a purchase advice from Citi. The American bank has a price target of €138.
Heavyweight Shell made a profit of 1.5%, supported by a recovery in oil prices. The International Energy Agency (IEA) predicts that the recovery of the oil market in the second half of this year will be less strong than previously thought. Unilever also attacked 1.1% in taste and thickness.
ABN Amro lost 2.8% on Monday after the handsome plus. ING dropped 1.2%. It is reported that the Swiss banks UBS, where former ING top executive Ralph Hamers will soon take over the helm, and Credit Suisse have started an investigation into a possible merger.
Among the mid-sized funds, Eurocommercial Properties excelled with a price jump of 6.8% after JPMorgan took the real estate company off the sales list.
Signify was also up 3.6%, with Goldman Sachs putting the lighting company on the list of favourites.
SBM Offshore gained 5% after a strong upturn around lunch. Investors welcomed the news that the service provider for the oil industry is conducting exclusive negotiations with Brazilian oil giant Petrobras for the supply of a floating production platform to produce gas and oil.
Vopak, on the other hand, lost 0.4%. On Monday, investors were still cautiously positive about an acquisition of terminals in the US.
Smallcap Forfarmers won 3.6%, in response to the announcement of its financial targets for the next five years. The animal feed company wants to grow further in Europe and pay more dividend.
Kiadis Pharma shot up 10.7% in the local market thanks to the receipt of a $9.5 million subsidy from the US for the further development of a corona medicine. The biotechnology company had already hinted at this on Monday, when regulatory approval was obtained from the FDA to launch a clinical trial to treat Covid-19. Business bank KBC saw reason to raise the price target to €2.80, but stuck to its holding advice.
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