The AEX is still slightly lower in the afternoon. Investors are taking it easy in the run-up to the quarterly publications and because Wall Street is closed. AkzoNobel loses after a billion-dollar bid on a Finnish competitor. Shell also has a tough time. ASMI and ArcelorMittal remain in favour of Chinese economic recovery.
The AEX is slightly four hours 0.1% lower at 650.9 points. The AMX rises 0.5% to 977.3 points.
The results on the other European exchanges are also minimal. Stellantis debuts as a merged product of Fiat-Chrysler and Peugeot dam PSA in Paris and Milan with a profit of more than 7%.
The volumes are low, partly because the US fairs remain closed due to the celebration of Martin Luther King Day.
In Asia, the picture was mixed this morning, following the report that the Chinese economy grew over 6% in December and 2.3% throughout the year. Thats the slowest pace in 44 years. But it is the only country that has closed Corona Year 2020 positively. Economic growth of 8% is forecast this year.
Brent oil gives about 10% profit this year. The signals for oil are still green, says ING commodity strategist Warren Patterson: “We see significant interest from large investors in rising inflation expectations. They provide growth for the economy and want to join with investments in commodities. The dollar is falling, and that decline does not seem to disappear for the time being. This is beneficial for raw materials.”
Economist Stefan Koopman of Rabobank ascribes the reluctance among investors in Europe mainly to the delay in the distribution of the coronavaccines. “In addition, things had gone very fast in the past few weeks.”
Although further tightening of corona measures in several European countries threatens, Koopman has little concern. “There is a prospect of economic recovery from the summer when economies are expected to reopen. Delay could occur if the virus mutates in such a way that the vaccines become less effective.”
Investment strategist Wim Zwanenburg van Stroeve & Lemberger sees this as one of the biggest risks, but, like Koopman, estimates the chances of a strong stock exchange correction low. “The new US President Joe Biden pulls the wallet and central banks continue to provide support.”
Koopman expects little from the meeting of the European Central Bank on Thursday afternoon. “This one is getting boring. Lagarde will probably stress that the economic expectations previously issued are still valid and that the incentive programme does not need to be adjusted.”
Investors are also awaiting the next quarterly figures. Investment strategist Wim Zwanenburg van Stroeve & Lemberger sees it quite positively, although the official kick-off Friday was disappointing by American banks. “I think Netflix will come up with a good quarterly report on Tuesday night. While competition has increased, Netflix still has the best offer and the opportunity to increase subscription prices. I also think ASML will report a well-stocked order book on Wednesday. There are shortages of chips in the automotive sector and working from home still offers a lot of growth prospects.”
Akzo colors red
Winkelvastgoedfonds Unibail-Rodamco-Westfield is at the bottom of the AEX with a loss of 3.7%.
Ahold Delhaize loses 2.6%. Canadian Alimentation Couche-Tard ceases its attempt to take over the French Carrefour, following opposition from the French government.
AkzoNobel goes down 2.1%. With a bid for his Finnish industry partner, the painter launches a bid battle with the American PPG Industries.
Shell loses 1.3%. The energy giant was already suffering from profits on Friday, after the strong rise since the end of October.
On the plus side, the supplier gives ASMI a 1.7% profit.
ABN Amro climbs 1%. Berenberg has become more negative about the European banking sector. But the investment bank finds lagging behind such as ABN and ING, who received a holding and buying advice respectively, relatively attractive.
Steelmaker ArcelorMittal wins 1.8%, after an advisory increase to outperform of Credit Suisse, at a price target of $24.
Among the medium-sized funds, real estate fund Eurocommercial Properties is at the bottom with a loss of 3.1%.
Soil researcher Fugro falls 2.3% after having been removed from the purchase list by Degroof Petercam.
Air France KLM loses 1.9%, on reports that talks between the French and Dutch State about a new capital injection are very difficult. For this reason, the UK bank HSBC has reduced its target to €2.50.
Logistics service provider WDP is leading with a plus of 2.7%.