The Amsterdam exchange stands on Monday afternoon at a slight profit. After two weeks of fine price hikes, investor optimism is dampened by the increasing number of corona infections in, among others, the US. In the AEX retail property fund Unibail is the big winner with a jump of more than 12%.
Around noon the AEX index was 0.3% higher at 598.8 points. The stock market gauge ticked a stand of 602.06 this morning. The AMX climbed 1.5% to 872.1 points.
According to investment strategist Simon Wiersma (ING), investors are currently in a field of tension. On the one hand, they expect better times thanks to the arrival of corona vaccines, while on the other hand, the number of coronavirus infections is currently increasing in the US, Germany and Japan. “There is already a lot of positive news priced in the quotes. In addition, trust among US private investors has been at the highest level since January 2018. That always makes me a bit reluctant,” explains Wiersma.
The exchange signs in London (+0.7%), Paris (+1.2%) and Frankfurt (+0.6%) also turned green. US stock exchanges are expected to open 0.6% to 0.9% in the plus this afternoon.
There was a cheerful vote in Asia this morning, mainly because of the trade deal concluded by China and fourteen other Asian and Pacific countries on Sunday. Moreover, the Japanese economy showed a stronger recovery in the third quarter with a plus of 5% than expected.
The hopeful news about the coronavaccin of Pfizer and BionTech a week ago still supported. However, due to worrying reports about the coronavirus, investors did not dare to enter the market fully. For example, the number of hospitalizations of coronapatics in the US reached a record on Sunday, Austria reinstates and Germany is considering more stringent measures.
In the AEX Unibail-Rodamco-Westfield excelled with a profit of 12.4%. The retail property fund should soon be looking for a new top man and financial director. According to the French newspaper Le Journal Du Dimanche, their position has become untenable because the shareholders did not give the green light to the planned share issue.
ABN Amro added 2.6%, helped by a price target increase from €9 to €10.50 by the Morgan Stanley business bank. ING went 1.3% ahead. According to investment strategist Wiersma, European bank shares were also in the wind after the Spanish bank BBVA sold its US branch for $11.6 billion to industry partner PNC.
Steel manufacturer ArcelorMittal (+2.4%) was also positive. Broadcaster Randstad won 2.1%. The AEX also received support from the heavyweights Royal Dutch Shell (+1.2%) and Prosus (+1%).
ASML climbed 0.3%. Taiwanese chipmaker TSMC has allegedly ordered at least 13 EUV machines from the chip machine manufacturer.
Information supplier Wolters Kluwer dropped 2.5% after being put on the sales list by the American investment bank Goldman Sachs. KPN lost 1.4%, probably out of disappointment that there was no inheritance news. Last week, the telecom company went up sharply on reports that the Swedish investment company EQT is interested.
In the AMX soil researcher Fugro was the leader with a plus of 7.5%. Air France KLM went up 7.3% after a strong price target increase to €3.25 by the UK bank HSBC. This is still clearly below the current market price of the airline group.
PostNL increased 3.4%, in response to the announced sale of its remaining 20% stake in the former Italian subsidiary Nexive. KBC Securities finds it positive that the parcel and postal delivery company is further streamlining the organisation and maintaining its buying advice.
What do you have to do with your savings? Are stocks a good alternative in this uncertain time? Jim Tehupuring and Stefaan Casteleyn of 1Vergensbeheer give their vision on Thursday evening during a free webinar. Sign up for free.