Economy

German boost gives AEX wings | Financial

The AEX closed 1.6% higher at 532.8 points. The AMX rose 1.7% to 706.3 points.

Elsewhere in Europe, investors also turned to shares. The French CAC 40 won 2.2% and the German DAX even jumped 2.9%.

Wall Street remains closed today due to Memorial Day.

JP Morgan’s investment strategist Vincent Juvyns attributes the optimism mainly to the better-than-expected confidence figure of German entrepreneurs. “They are quite positive for future development. Undoubtedly this has to do with the improvement of the health situation, which increases the chance that the economy will open up more quickly. ”

In addition, he points out that Japan is likely to come up with a new comprehensive aid package this week. “This shows that policymakers worldwide are continuing to act to mitigate the effects of the corona crisis as much as possible.”

Juvyns is not very concerned about the report that Gilead’s drug remdesivir is less effective against the coronavirus than previously hoped. “The markets are not pricing in a quick launch of a drug or vaccine. The focus is more on the decreasing intensity of the virus and the fact that we can live with it better now than we did a few months ago. This also means that the economies can be opened further. Of course, the risk of a second contamination wave remains. ”

The investment strategist is also confident that the situation between the US and China is not going to get out of hand. “Given the relatively uncertain state of the world, we cannot use such geopolitical tensions. I expect the parties to look for de-escalation. China will also not want to deter investors by weakening Hong Kong. ”

Juvyns is nevertheless somewhat cautious about equities. “Stock prices have already recovered significantly and one game changer is necessary to become more positive. That could be agreement on a European economic recovery fund during the Euro summit on Thursday. Some countries such as the Netherlands are still against the package that Merkel and Macron agreed on last week, but could be persuaded by some compromises. ”

Investment adviser Rein Schutte of Noesis Capital Management is even more cautious. “Investors take the bad macro numbers for granted on the assumption that the worst is over. There is a danger that the stock markets will overshoot. ”

Schutte notes that the difference in valuation between so-called value shares and growth shares has risen sharply. “Tech companies like Adyen are doing very well, while traditional banks, among others, seem cheap. There will come a time when this is going to run. However, I do not recommend investing heavily in this, as such a situation may persist for a long time to come. ”

In the AEX ended Unibail Rodamco Westfield with a plus of 7.8% in the lead. Despite this recovery, the retailer is still at a loss of two thirds.

Galapagos plus 4.9%. Investor confidence in the biotechnology group returned after the stock went on sale on Ascension Day due to disappointing research results.

Adyen became 3.1% higher in the run-up to the shareholders’ meeting, which will be held digitally from 10 am on Tuesday. The payment service provider is the winner in the AEX this year with a plus of almost 60%.

ABN Amro and specialty chemicals group DSM were left with losses of 0.9% and 0.7%, respectively.

With the medium-sized funds Basic-Fit the biggest winner with a plus of 6.9%. Apparently, investors have come to estimate the chance that the gym may open earlier than on September 1.

Air France KLM rose 4.6%. Finance Minister Hoekstra has to add color to the vote on CEO Ben Smith’s bonus at the shareholders’ meeting of the airline group on Tuesday. In addition, there may soon be more tax money in Air France KLM, because the shareholders will decide tomorrow about a possible share issue.

BAM took 3.2%. The construction company, together with recycling specialist Banzo, has seized € 5.6 million from the municipality of Amsterdam, because the city’s waste processor refuses to pay the bill for its new recycling installation.

Cable and telecom company Altice, that already went down last week after disappointing quarterly figures, lost another 1.1%.

Small cap Accell accelerated 5.2%. The bicycle manufacturer has noticed that the demand for electric bicycles has increased rapidly since the corona crisis.

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