AEX profit shrinks after Wall Street opens | Financial

The AEX index is in the green at ten over four 0.4% at 790.4 points. The AMX loses 0.6% at 1093.3 points.

The other European stock markets are doing less well. The UK’s FTSE and German DAX are up a modest 0.1%. The French CAC 40 is down 0.1%. The growth of the British economy virtually stagnated (+0.1%) in July compared to June, this morning showed.

According to figures from Statistics Netherlands, the Dutch industry has reached the highest production ever, after an increase of 14.1% compared to last year. German inflation was slightly higher month-on-month at 4%.

Asian support

In Asia, gains from Chinese technology funds such as Alibaba, Tencent, JD.com and Meitan boosted stock markets by more than 2%. The Nikkei is Closed 1.3% higher.

Chinese media report that the required permission Beijing requires for video games has only been delayed, not scrapped. That gives video producers and internet companies such as Tencent air. Tech Investment Fund Prosus, with a 28.9% interest in Tencent, is 0.4% lower in Amsterdam.

The US stock markets have slipped somewhat after a cautiously positive start. After more than half an hour of trading, the Dow Jones is 0.1% lower and the Nasdaq index 0.3% higher.

ECB ‘reassess’ decision

Investors assess details of the ECB’s decision to slightly phase out government and corporate bond purchases under the PEPP pandemic relief program.

According to ECB President Lagarde, this is possible thanks to the economic recovery, rising inflation and ‘favourable financing conditions’. Lagarde does not call the dismantling an official one tapering, but ‘recalibration’. An interest rate hike is far from in sight, she said on Thursday.

“This is a great outcome for investors”

“This ECB decision is an excellent outcome for investors: there is still ample monetary support, interest rates remain low, there is growth: the sun is shining for equities,” summarizes Joop van de Groep of asset manager Fintessa.

According to the ECB, full employment is required to continue with the reduction of aid. “And that is certainly still disappointing in the US. The demand from the market is sufficient, it is now about the supply side. Within the central banks there is a battle between so-called hawks, who want to reduce support earlier, and the pigeons going on in the ECB, but also within the Federal Reserve,” he outlines.

“It is certain that the money tap is closing”

However, the move towards less support has become clear to the market, says investment strategist Vincent Juvyns of JPMorgan. “In two weeks’ time at the Federal Reserve meeting, investors will mainly be looking at the risks of longer inflation expectations,” he says. “It is certain that the money tap is closing.”

The euro is up 0.1% to $1.1833. According to currency trader Monex, the ECB disclosure disappointed slightly, as inflation did not rise towards 2%.

“The start of the PEPP cut will put a floor under the euro next quarter,” said currency analyst Ima Sammani of Monex Europe.

Bonded stock

The interest rate for the German 10-year government bond is 2 basis points higher to -0.344%. The US counterpart is up 2 basis points to 1.319%. Gold fell to just below $1800.

Brent oil costs 1.9% more at $72.70 a barrel.

Tech leads in AEX

The main funds include suppliers to the chip sector Iron, ASMI on ASML with gains of 4.2%, 4% and 2.1% respectively. French investment bank Oddo raised its price target from ASML from €769 to €900.

ASMI, which is making its disclosure to investors on Sept. 28 and is already up 100% this year, will yield $450 per share, Oddo says, up from $320. ASMI also receives buying advice from AlphaValue/Baader.

Due to the interest rate hike that will not rise for a long time, according to the ECB, retail property fund Unibail-Rodamco-Westfield 4.1% lower.

Also defensive stocks like Ahold Delhaize (-1.1%) are hit.

Just Eat Takeway falls 0.6%. The meal delivery company is continuing its lawsuit in New York for its subsidiary Grubhub in the US against a reduced ceiling for commissions it can charge, a case that competitors DoorDash and Uber Eats are joining. The deliverers would have already missed more than € 100 million in revenue.

Chemicaliëndistibuteur IMCD loses fractionally. According to JPMorgan, his CEO has mentioned possible acquisitions in Asia in an explanation. CEO Van der Slikke would like to become a major player, especially in China.

Air France goes down

Prices for medium-sized funds Eurocommercial Properties 2.3% stock. Air France KLM falls 1.9%.

Post vault landlord InPost is in the lead here with a gain of 1.8%.

Smallcap CM.com, which provides business text messages for companies, rose 0.4%. The two founders Gilbert Gooijers (coo) and Jeroen van Glabbeek (ceo) have made 500,000 of their own shares available as major shareholders in order to be able to go short, according to the company’s wishes from investors.

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