The AEX is closed slightly lower Monday. Investors took it easy in the run-up to quarterly publications and because Wall Street is closed. Especially Ahold Delhaize and Unibail-Rodamco-Westfield had a hard time. Galapagos and ArcelorMittal, on the other hand, were loved.
The AEX closed 0.2% lower at 650.3 points. The AMX rose 0.5% to 976.8 points.
The results on the other European exchanges were also minimal. The British FTSE 100 closed down 0.2%. The German DAX and the French CAC 40 won 0.4% and 0.1% respectively. Stellantis debuted as a merged product of Fiat-Chrysler and Peugeot mother PSA in Paris and Milan with a profit of 6.9%.
The volumes were 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. That‘s 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 attributed 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
Ahold Delhaize ended with a loss of 3.7% at the bottom of the AEX, possibly in response to the failure of Canadian Alimentation Couche-Tard’s attempt to take over French Carrefour. Investors may also fear that possibly setting a curfew in the Netherlands will affect the supermarket chain.
Unibail-Rodamco-Westfield retail property fund lost 3.2%.
AkzoNobel went down 2.5%. With a bid for his Finnish industry partner, the painter launches a bid battle with the American PPG Industries.
Shell lost 0.9%. The energy giant was already suffering from profits on Friday, after the strong rise since the end of October.
Data supplier Wolters Kluwer picked up 0.4%.
Biotechnology company Galapagos reached the shared leading position after a final sprint with a plus of 2.4%.
Steelmaker ArcelorMittal also won 2.4%, after an advisory increase to ‘outperform’ of Credit Suisse, at a price target of $24
and ING and ABN Amro climbed 1.6% and 1.5% respectively. The German commercial bank Berenberg finds banks in the European sector relatively attractive.
With medium-sized funds, logistics service provider WDP ended with a plus of 3.1% at the head.
Soil researcher Fugro fell 1.7% after being removed from the purchase list by Degroof Petercam.
Air France KLM lost 1.1%, on reports that talks between the French and Dutch State about a new capital injection were very difficult. For this reason, the UK bank HSBC has reduced its target to €2.50.