US plugs propel AEX above 560 points Financial

The AEX index posted a 2.6% gain of around a quarter to five at 560.52 points, the highest level since late February. The main gauge thus smoothed out the heavy corona crash that started in early March. The AMX index sprinted to 1.9% gain to 759.20 points.

At European exchanges elsewhere, the atmosphere also got better: the British FTSE 100 (+ 1.9%), CAC 40 (+ 1.8%) and German DAX (+ 1.6%) took advantage of optimism. The DAX companies have landed on a price profit ratio of 20; the highest level since the dot.com bubble. The new German unemployment rate, adding 238,000 to 6.3% of the labor force, exceeded expectations.

In the afternoon, the highly satisfactory job report from salary processor ADP was released. The number of jobs in American business has fallen much less rapidly than previously feared. Luc Aben, chief economist at Van Lanschot, emphasizes that some green shoots were already visible in the American labor market last week. “However, the huge deviation between the real ADP figure and the expectation is striking. This corona period makes it difficult to properly estimate the actual situation. In addition, so far mainly workers with temporary jobs have been made redundant, which can also be quickly taken on again by the relaxation. ”

A significant improvement in the US services sector further fueled investor appetite. The ISM index bounced back from quite low.

Investors are also hopeful of new stimulus in the run-up to the ECB’s interest rate decision, Aben says. “Even if the ECB does not act tomorrow, the explanatory notes will almost certainly hint that it will do it next time. I think that ECB President Lagarde had previously envisioned a quieter familiarization period. Policy makers have learned a lot from the crisis in 2008 and 2009 by stimulating large-scale efforts. ”

Aben takes into account that the V-shaped recovery in the stock markets may continue even further. He points out that due to the lack of alternatives, the TINA effect has surfaced again. The limited number of new corona infections despite the lifting of the lockdowns has also given courage. “You can see that investors are now picking up stocks again, which were hit hard in March, such as real estate, financials and oil values.” On the other hand, he warns against too much optimism. “In the US there is a risk that the coronavirus will reappear en masse, but a country such as Brazil, where many multinationals are active, is also a great uncertainty due to the danger of corona.”

Unibail is looking great

Real estate fund played in the AEX Unibail-Rodamco-Westfield prominent the leading role with 13.5% price gains. Chip supplier ASMI (+ 6.5%) also profited greatly from the desire to buy. Industry colleague ASML set a record of well above € 300 with a plus of 3.5%.

Financial institutions were also booming, following signs that negative interest rates are nearing their end: Aegon was best on track with a price jump of 10.3%. ING saw the price pick up 4% while ABN 3.2% won.

Furthermore experienced Shell a great day and became 3.9% more expensive in response to the further upturn in oil prices.

Adyen had to donate 0.3%. Directors at the Stock Exchange Pearl have reduced part of their interests in the payment processor. Tech investor Prosus, another high flyer dropped 1.1%.

At the medium-sized funds Air France KLM wings with a price jump of 8.5%. Sector colleague Lufthansa announced a major reorganization. Engineering office Arcadis was also on the rise with a 5% advance. For soil researcher Fugro investors had 5.3% more left.

LED lighting manufacturer Signify in the Midkap increased by 6.8%. Analysts from the French bank Société Générale increased their recommendation.

Specialty chemical company Avantium (+ 2.2%) stated that they had received an assignment from the King Abdullah University of Science and Technology for the small caps. “The assignment is worthwhile,” said analysts at KBC Securities. ING has pasted a buying advice on Avantium.

Furthermore was Kendrion in good condition and thickness 7%. In the slipstream, the supplier for the car industry followed the strongly improved mood in this sector.

More relevant financial news every morning for free in your mail? Sign up here.

–