AEX hit the wheels with collapse Shell | Financial

The AEX index ended 1.2% lower at 540.8 after an interim dip to below 535 points, the lowest level since the beginning of June. The AMX index fell 1.4% to 789, 28 points.

Elsewhere in Europe, the UK FTSE 100 limited damage to a loss of 0.1%, the German DAX index lost 1% and the French CAC 40 dropped 1.6%. According to the latest figures, the French economy is expected to rebound but shrink by 9% this year.

After the nice recovery in prices a day earlier, investors fell back into their shells on Tuesday. According to Rein Schutte, investment advisor at Noesis Capital Management, the tech story still plays a major role in the greatly reduced desire to buy. “Tech stocks have performed very well in the past few months, but have fallen sharply since late last week due to uncertainty creeping into the market as to whether things have gone too fast. Brexit, which had disappeared from the radar for a long time, is now included in my view as an explanation for the sales pressure, partly due to the fall of the British pound. ”

Schutte takes into account that, despite the recent downturn in tech stocks, there will be little movement this trading month with an expected continuation of the sideways trend for the AEX. “The current tech rally cannot be compared to the one in 2000, because many tech companies at the time still suffered heavy losses. Moreover, there is now hardly any alternative because of the very low interest rates. The upcoming US presidential elections in combination with the ongoing unrest in that country still pose a risk. ”

Daam-Martijn van Holst, trader at ABN Amro, emphasizes that a combination of factors has contributed to the gloomy state of affairs on the Damrak. He points out, among other things, the increased stress about a possible hard Brexit in view of Johnson’s threatening language. The renewed selling pressure on tech stocks and the uncertainty about the upcoming ECB decision later this week also play a role in the depressed sentiment, he says. “Tech funds that have risen sharply in previous months are currently blowing off steam. However, no major correction is expected, although September does have a reputation as a crash month. Furthermore, the ECB will probably indicate in the explanatory memorandum that it will keep a finger on the pulse on, among other things, the rise of the euro. ”

ASMI bitten dog

In the almost entirely red-colored AEX, the tech values ​​still had to deal with heavy headwinds. The semiconductor companies ASMI in ASML gleden 5,5% and 2.2% respectively. Biotech company Galapagos was hit by 4.5%. Payment processor Adyen fell 1.9%.

Steel concern Arcelor Mittal lost 1.3%. Shell was weak in the market, declining 4.2% in response to the ongoing downturn in oil prices amid heightened concerns about a drop in demand for oil due to rising corona infections.

Telecom company KPN (-1.9%) reported to have raised € 600 million through the issuance of Eurobonds. The loans were placed with a wide range of institutional investors.

Unilever was among the scarce winners with a gain of 0.3%.

Chip supplier headed to Midcap bottom Iron with a bloodletting of 3.7%. Fitness chain Basic-Fit lost 2.2%.

Lighting company Signify thickness 1.6% on the claim that it has achieved global carbon neutrality for all of the company’s activities. Boskalis Westminster rose 1.1%.

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