Around 11 a.m., the AEX index was 1.2% lower at 551.7 points. The AMX fell 0.4% to 822 points. The price signs in London (-0.7%), Paris (-0.9%) and Frankfurt (-0.9%) also turned red.
Investors were negative, because US central bank chairman Powell did not hint on an expansion of the buy-back program on Wednesday evening. They had hoped for that. “Powell has made it clear that we are in a long period of very low interest rates,” said asset manager Renco van Schie (Valuedge). The Fed chairman stated that the interest rate in the US will certainly continue until 2023 will stay close to zero. That is longer than what analysts previously took into account. “Powell also indicated that even after that, interest rates will go up in small steps,” said Van Schie.
Elsewhere, the stock markets also drove lower. The Japanese Nikkei index closed 0.7% in the red this morning. Stock market trading in Tokyo was dominated by the Bank of Japan, which said it would maintain its ultra-low interest rates and very loose monetary policy. The central bank was slightly more cheerful about the Japanese economy than in July.
Of American stock exchange trading showed a mixed picture on Wednesday. Tech exchange Nasdaq ended 1.3% lower, while the Dow Jones index gained 0.1%. The stock exchanges in New York are expected to open 0.9% to 1.3% in the min.
Thump for Unibail
In the AEX was Unibail-Rodamco-Westfield the biggest loser with a minus of 8.5%. The retail property fund wants to strengthen its financial position and is therefore spending € 3.5 billion in shares. The company also wants to dispose of assets worth around € 4 billion and its dividend and investments are being scaled back. All savings must be used to reduce indebtedness.
The financial values ABN Amro (-2,7%), Aegon (-1.9%) in ING (-2%) the AEX also pulled down. The chip machine manufacturers ASMI (-2.3%) in ASML (-2.3%) were also among the bigger losers among the main funds.
Steel giant ArcelorMittal (+ 1%) was the largest riser in the AEX. Payment service provider Adyen was allowed to add 0.9%. IMCD climbed 0.8%. The chemicals distributor already gained more than 9% on Wednesday after the announcement of the acquisition of the Indian industry peer Signet.
In the AMX became real estate fund Eurocommercial (-4%) pulled down by Unibail. Fugro won another 5.9%, after already winning 4.6% on Wednesday. Almost a month ago, rumors of a possible merger with British maritime services provider Acteon surfaced, which the soil researcher has denied.
The locally listed stock Euronext left 1.4%. Analysts at the British bank HSBC have scaled back their recommendation for the stock market operator from ‘buy’ to ‘keep’.
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