Economy

AEX is narrowly holding above 640 points | Financial

At a quarter past four, on the last trading day of January, the AEX is listed 1.1% lower at 641.8 points. Earlier in the afternoon, the index even dipped below 640 points. The AMX is clearly doing better and limits the loss to 0.2% on 964.8 points.

The other European stock markets are also clearly lower. The British FTSE, the German DAX and the French CAC-40 lose 1.6%, 1.3% and 1.5% respectively.

“Sentiment seems to be turning”, says Jeroen Blokland of asset manager Robeco after the 0.2% profit for the AEX on Wednesday. The ‘shaky index’ VIX, measure of volatility on the stock exchange, is above 30 points. “That is quite high, while the futures of the stock market are falling,” said Blokland.

The American stock market indicators have started clearly lower. After 45 minutes of trading, the Dow Jones index is 0.7% and the Nasdaq index 0.8% lower.

Great volatility

In the US, broker RobinHood has resumed the partially blocked trading of stocks and derivatives from companies that are being sought after by ‘stock exchange rebels’.

Shares like GameStop – which immediately rose 100% again in futures trade Friday morning – and AMC, but also Bed, Bath & Beyond, Beyond Meat and Macy’s have significant short positions. Large-scale purchase of those shares with options pushes the price down due to leverage.

After a wild ride on Thursday, price increases of hundreds of percent, Robinhood and Interactive Brokers restricted the purchases. Robinhood thus claimed to protect the company and consumers.

On Friday, it raised $ 1.5 billion in additional capital to arm itself against the massive shocks to trading on its platform.

These sudden interventions are the subject of investigation by stock market watchdog SEC. Some American politicians demand that the market should be able to do its job. The common man could also benefit from this, not just Wall Street, said Sherrod Brown, chairman of the US Banking Committee. The Senate opens a hearing on “the state of the stock market” because of these huge price spikes.

Corona care

The number of coronavirus deaths is still increasing. London extended the lockdowns.

The American Novavax reports that its vaccine protects nine out of ten people against Covid-19. Also, based on preliminary results, the drug would be almost as effective against the British variant of the virus.

The European Medicines Agency (EMA) will issue its opinion on the vaccine from pharmaceutical company AstraZeneca and the University of Oxford around three o’clock. A fierce conflict has arisen between the European Commission and AstraZeneca. The British-Swedish pharmaceutical company reported much less in the first quarter than the previously promised number of doses of its vaccine.

Bitcoin price soared above $ 37,000 after a high-profile tweet from Tesla CEO Elon Musk.

Philips considerably lower

The AEX contains a medical technology company Philips with a loss of 2.4% at the bottom. Payment processor Adyen drops 2.3%.

Heineken follows with a decline of 2.1%. Steelmaker ArcelorMittal drops 1.5%. The previously envisaged takeover of Tata Steel IJmuiden by the Swedish SABB in its sector is canceled.

ING, mentioned in a currency trading scandal in Asia, is down 1.2%.

Chip machine maker ASML declined 1.3%, despite a target increase by Berenberg to € 540 with an unchanged buy recommendation. The German investment bank states that ASML is rapidly becoming a different type of company, in which the new EUV machines play a greater role. Industry colleague ASMI keeps the loss limited to 0.1%, after also being upgraded by Berenberg.

Just Eat Takeaway is taking the lead with a progress of 4%. The meal deliverer thrives during lockdowns.

Chemical and paint producer AkzoNobel wins 0.3% after the confirmation of a binding offer of € 1.4 billion for its Finnish peer Tikkurila. Heavyweight Shell supports the AEX with 0.2% profit, aided by a slight rebound in oil prices.

With the medium-sized funds Signify with a minus of 2.9% at the bottom. The lighting company made more profit in the past quarter, but expects to be suffering from the effects of the corona crisis for a long time to come. It was announced on Thursday that the former light branch of Philips will cut more than 700 jobs worldwide, 250 of which are in the Netherlands.

Real estate fund WDP leads with 4.5% profit in response to its full-year results release.

FlowTraders climbs 2.7%. The market maker benefits from more volatility in the stock markets and also received a buy recommendation from the American bank Jefferies.

HALL loses 0.4% on the local market. The investment company reported lower annual figures and a dividend cut on Thursday after the close of the market.

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