Signify leads the way in AEX recovery | Financial

The AEX closed 0.6% higher at 723.8 points. The index fell 2.1% on Friday as interest rate fears flared.

The AMX climbed 0.3% to 1044.3 points. The rebalancing of the indices on Euronext started today.

Most stock markets elsewhere in Europe also climbed. Britain’s FTSE 100, Germany’s DAX and France’s CAC 40 gained 0.6%, 1% and 0.5% respectively.

When the European stock markets closed, the Dow Jones index was 1.5% higher and the Nasdaq index 0.6%.

The upward trend is from the AEX this year.

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Investors worldwide are reacting to the change of course at the Federal Reserve, says Renco van Schie of Valuedge. The key interest rate held up on its last decision last week, as did the bond-buying program, but according to the so-called dot plot two rate hikes are planned in 2023.

In addition, Fed director James Bullard sharpened the direction on Friday, noting that interest rates could go up as early as next year.

Inflatievrees

“The change in the dot plot was surprising last week. But investors today are already looking further into the consequences. There is still so much support, there is a lot of buffer before an interest rate hike hits hard,” says Van Schie of Valuedge.

“The smoke has to clear for a while, these kinds of trading days only occur a few times a year. Markets are emerging from cruise control expectations of barely any movement at the Federal Reserve. Investors have to get used to the new message.”

Short-term interest rates are currently rising, while long-term interest rates are falling. At the same time, the dollar experienced the strongest movement since the pound moved enormously during Brexit, Van Schie illustrates the tumult.

He suspects that Fed chief Bullard will adjust his tone on interest rates slightly during a speech today. ,,I expect from the ECB a dovish sound today, as before.”

“There is simply still a lot of confidence in equities”

The market remains positive, he says. “Just look at how easily investors have bought in on almost every dip. $500 billion in ETFs and other investments has flown in, it is expected to reach $1000 billion this year. There is simply still a lot of confidence in equities,” said Van Schie, who recently went neutral in equities.

The yield on a 10-year US Treasury bond is now slightly below 1.50%.

The euro has strengthened 0.3% to $1.19. Bitcoin fell 8% to around $33,000.

Oil prices rose about 1%. On the leading Dutch gas exchange, the price of natural gas has risen to the highest level in thirteen years. Gold recovered 1% to $1787.

Steel gains ground

lighting company Signify led the Dutch main funds with a plus of 1.8%. ArcelorMittal rose 1.2%. The steelmaker announced Friday after hours that it would start its third buyback program for another $750 million.

Ahold Delhaize also climbed 1.2%. British industry rival Morrison won strongly, having just turned down a £9 billion offer. That fuels rumors of a higher offer.

Heineken (+1.0%) would increase its majority stake in Indian beer giant United Breweries (UBL). In 2008, it acquired a 37.5% stake in the Indian brewer.

Chipmachinemaker ASML gained 0.9%, aided by a Barclays price target increase from €650 to €750. British analysts have increased their revenue and profit forecasts to 2026 by 8 to 15%.

Shell rose 0.8%. According to a comparison by the NOS, the pension fund ABP has more than doubled its stake in Shell recently.

Tech investor Prosus rose 0.5% after the release of its quarterly results. The American investment bank Jefferies calls this ‘encouraging’. The South African bank Investec sees this as a reason to reduce the advice to keep.

Payment processor Adyen, which still excelled on Friday, ended with a minus of 1% at the bottom.

Medical Technology Company Philips also fell 1%, after being taken off the buy list by British bank HSBC.

Flow benefits

Fertilizer producer finished in medium-sized funds OCI with 2.8% profit at the top.

Biotech fund ended up at the bottom Galapagos with 2.9% loss.

Pershing Square Holdings (+1.8%) from hedge fund manager Bill Ackman officially acquires a 10% stake in Vivendi’s Universal Music Group business.

Would you like to know how investment experts Koen Bender (Mercurius Asset Management), technical analyst Nico Bakker (BTAC) and Jim Tehupuring (1Asset Management) look at the second half of the year? Report Then sign up for the webinar Thursday evening.

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