(ABM FN) The Brussels stock exchange started the week on a low note with a main index that saw losses mount on Monday afternoon. The Bel20 eventually closed the trading day with a loss of 1.3 percent at 4,250.79 points.
Among the major European stock exchanges, Amsterdam did a lot worse with a 1.9 percent drop for the AEX. This index is extra sensitive to rising interest rates because of all tech stocks, just like the Nasdaq, for example.
The decline in global stock markets was set in motion last week by the US Federal Reserve’s minutes, which showed that the central bank is rushing to halt inflation.
The markets are shocked by this prospect, said chief economist Luc Aben of investment bank Van Lanschot Kempen. Investors are mainly avoiding growth stocks, which are better represented in the US markets.
According to Aben, the composition of the European stock markets is much better equipped for higher interest rates.
Tighter-than-expected monetary policy is a risk factor for investors this year, the economist warned. And in this regard, inflation figures are important to monitor. The American, Dutch, French and Chinese inflation figures are on the agenda this week.
Another important fact, according to Aben, is the state of the American labor market. The latest report, released Friday, showed disappointing job creation as the unemployment rate approaches pre-coronavirus levels.
In the meantime, the corona virus also remains in the spotlight, the economist noted. But the idea that the omikron variant is more contagious but less dangerous supports the idea that the pandemic has reached its final stages, Aben said. It remains to be seen whether this scenario materializes, the economist warns, but as long as there are sufficient reasons to believe the pain will be severe but brief, investors can see through it.
On a macroeconomic level, Monday was a quiet day. The lion’s share of the figures will follow later in the week.
The unemployment rate in the eurozone fell from 7.2 percent in November from 7.3 percent in October. The euro weakened again against the dollar. At the close of European markets, the currency pair was trading at 1.1329.
Risers and Fallers
In the main index, the number of risers was limited, with only 6 of the 20 main stocks closing in the green, led by Telenet and AB InBev with gains of 2.3 percent respectively.
Argen-x was at the bottom of the Bel20 with a loss of 5.9 percent. The stock has been under pressure since last week, when the biotech company announced it expects more than $1 billion in costs this year.
In the BelMid, Unifiedpost took the lead with a plus of 2.9 percent.
Biocartis lost some ground, but nevertheless rose 2.4 percent. The diagnostics company has managed to achieve its own goals for 2021. According to KBC Securities, Biocartis’s growth potential has not been fully priced in by the market.
Bekaert added 0.9 percent after a positive report from Kepler Cheuvreux. “We think the Chinese market will make a softer landing than previously expected after the Evergrande crisis,” Kepler said. “In addition, we expect the decline in OE tire sales due to the supply crisis in the semiconductor sector to be the worst.” The stock exchange raised the price target for Bekaert to 50.00 euros with a buy recommendation.
D’Ieteren and Shurgard lost 7.3 and 4.3 percent respectively.
Among the smaller stocks, Acacia Pharma rose 8.2 percent. Exmar lost 4.5 pour cents.
Nyxoah implanted the first US patient in his DREAM IDE study in December. The company still expects the implants, which are taking place at 15 locations in the United States, to be completed in the first quarter of this year. Degroof Petercam also raised the price target for the stock, which closed 1.4 percent higher.
Celyad Oncology closed 2021 with 30 million euros in cash and shared the outlook for 2022. The share rose 1.0 percent.
Wall Street
The US indices are also under pressure on Monday. At the close of the European stock markets, the main US index S&P500 fell 1.4 percent, while the technology index Nasdaq lost 1.8 percent.
Bron: ABM Financial News
From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
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