Interest Fear Drops Tech Stocks | Financial

At half past four, the AEX is 0.3% lower at 681.3 points. The Midkap index decreases 0.9% to 1006.1 points.

Most other European indicators also submit. The UK FTSE and French CAC 40 are down 0.5% and 0.1% respectively. The German DAX is almost flat.

In the US, the Nasdaq index is 1% lower after two hours of trading. The Dow Jones index is doing significantly better with a plus of 0.1%.

In the run-up to the Fed decision at seven o’clock tonight and the subsequent press conference, bond yields are rising again. At 1.68%, this is the highest level for 10-year US Treasuries in the past twelve months.

OHV asset manager Richard Abma thinks Fed chairman Jerome Powell will try to talk interest rates down. “It remains to be seen whether that will work. As more and more American states open up, the number of vaccinees increases and the corona support program provides a boost in demand, inflation is rising sharply. But the Fed actually cannot do anything about this. ”

Abma points out that the central bank is in a dilemma. “She wants to stimulate the economy and thus employment. But this does put upward pressure on inflation. Ultimately, she cannot avoid raising the short-term interest rate, but for the time being it seems that this will happen in the second half of next year at the earliest. For the very long term, the market is now targeting a Fed rate of 2.5%. ”

The asset manager thinks that bond yields could rise a bit further. “This is generally bad for bonds, but also for stocks. Technology stocks are particularly affected, as their future gains must be discounted at higher interest rates. My preference is therefore for value stocks, such as financial institutions. ”

InsingerGilissen analyst Jos Versteeg is less concerned. “The rise in interest rates is creating additional volatility, especially in technology stocks. But once the second quarter business figures are released, I think these stocks will do well again. ”

In the fight against the coronavirus, European countries want to start using the AstraZeneca vaccine again if the EMA is positive. The European medicine watchdog has so far found no evidence that the vaccine causes problems with blood clotting. A final conclusion is expected on Thursday.

The AEX contains payment processor Adyen in the rear with a price drop of 2.5%. Biotechnology company Galapagos loses 2.3%.

Prosus gives up 2.2% after the retreat of the Chinese internet company Tencent, in which the tech investor has a major interest.

Retail real estate investor Unibail-Rodamco-Westfield, which closed at the highest level in twelve months on Tuesday, fell 2.2% due to profit-taking.

ABN Amro zhe continues on Tuesday’s recovery, gaining an additional 1.8%. On Monday, the bank went down because the Public Prosecution Service expanded its investigation into debt money laundering. ING and KPN follow pluses of 1.5%.

Dataleverancier Relx climbs 1.4% after news of a deal with a California university.

With the medium-sized funds Basic-Fit with a minus of 3.6% at the bottom

Soil researcher Fugro gives a 2% price.

PostNL is at the forefront and gains 2.1%.

Logistic real estate developer CTP which will go to the stock exchange in Amsterdam next week, has announced its introductory price. This is between € 13.50 and € 16 per share. With this, up to a maximum of € 976 million can be raised.

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