On the last day of the month at 4.45 pm, the AEX is 1.9% lower at 651.8 points. The Midkap index is down -1.2% at 979.8 points.
“The market is reacting very nervous,” points out Robbert Manders of broker IG on the volatility index VIX, which stands at almost 30 points.
“That VIX level is higher than the recent peak of 2017 and 2019.” Something of which liquidity provider Flow Traders (+ 0.4%) benefits directly.
The market is also responding to ECB director Schnabel. She says today that ‘perhaps extra stimulus’ is needed if interest rates in the US continue to rise.
Elsewhere in Europe, Frankfurt lost 0.8%, Paris lost 1.5% and London lost 2.5%.
Dow to loss
On Wall Street, the Dow Jones goes 260 points lower.
The macro figures show that the average income and expenditure (+ 2.4%) of Americans rose sharply last month, thanks to government support.
“But there is the fear among administrators that President Biden’s stimulus package – strange as it may sound – will become too big for the market,” says macro-economist Léon Cornelisse about the price sentiment.
The proposed aid package amounts to $ 1900 billion. “This will give the economy a significant boost, especially if people are now vaccinated quickly. They will then come out of lockdowns and consumers will make their deferred spending, with a lot of financial backing. Then the prices rise quickly and therefore automatically the interest ”, says Cornelisse.
“People will queue up for a limited number of trips or holiday homes, it becomes likely that providers will increase their prices.”
It is still a long way to go, says the economist. “But the market already fears this inflation. So they are very much looking at what central banks, especially those in the US, are going to do to limit a rapid rate hike. ”
Interest and corona
Interest rates raised are a concern for investors. The US 10-year, the basis for the rate for consumer loans and mortgages, stands at 1.508%.
High real interest rates make investors sell many tech funds: for these stocks, rising interest rates with fewer cash flows cause a lower current valuation of future earnings.
In addition, the corona virus is reviving. France is threatening to lock more regions, including Paris, after a sharp increase in the number of infections. According to today’s latest figures, the French economy has contracted by -1.4% more than expected.
The dollar is strengthening, the euro is trading 0.6% lower to $ 1.2094. Brent oil drops 1.4% to $ 65.30 a barrel.
Bitcoin is down 2% to $ 46,156 and traffic island gold is down 0.6% to $ 1760.
Steel at the bottom
In the completely red-colored AEX is a steel maker ArcelorMittal (-4.8%) and biotech fund Galapagos with a 3.6% decrease. CEO Van der Stolpe reports to De Telegraaf to step down in the event of a new setback.
Shell drops 3.7%. “Because of the strengthening dollar, in which all oil is settled, and the falling oil price,” says Manders. Meal delivery company Just Eat Takeaway goes on sale for over 2.2%.
Retail real estate investor Unibail-Rodamco-Westfield drops 3%.
Financials ING and ASR losses 1.5% and 2.5% respectively.
Tech Funds Prosus (-2.3%), Adyen (-2.4%) – both the biggest weekly losers – and index heavyweight ASML (-0.8%) push the AEX down.
Chip Fund ASMI reported Thursday after the market was still better than expected results, but loses 0.1%.
IMCD (-0.2%) has long been the only windfall after better than expected results, but has fallen.
Food group Unilever let go 0.7%. Danone (Activa, Actimel) is threatening to change his market, now that the Asian Partners fund is pushing for the departure of CEO Faber due to ‘underperformance’. Danone (-2.5%) approached Jan Bennink. He previously sold Numico to Danone. Ahold Delhaize drops 1.4%.
Air France KLM on track
There is a fertilizer manufacturer in the Midkap OCI 3.3% at the bottom, with Aalberts Industry (-3.2%) and food ingredient maker Corbion (-3%).
GrandVision declines 1.4%. The owner of optical chains Pearle and Eye Wish reports a net loss of € 45 million for the corona year 2020. GrandVision persists in the acquisition by industry peer EssilorLuxottica, despite the conflict between the two parties.
Air France KLM on the other hand, it is falling against the negative trend with 1.9% as the scarce winner.
In the case of small caps, metal supplier loses AMG another 6.2% despite optimism about the improving market.
The share Ajax remains upright. After the win against Lille (2-1) in the Europa League, it will be against the Swiss Young Boys in the next round.
Going to the local market Fastned 22% down. The charging station manufacturer has placed 1.9 million new shares worth € 150 million with institutional investors at a price of € 80.
A crucial result for the perception of the company, says analyst Jim Tehupuring of 1Vermogensbeheer:
“The share price loss today is mainly due to the dilution of the shares that is occurring,” says Tehupuring. “The result must be divided by the current shareholders over 12.5% extra shares.”
Also Neways loses, around 4%. The Brabant electronics group, supplier to defense and the automotive sector, after 200 jobs last year, is now cutting 150 jobs according to its annual figures reported today.
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