June 13, 2022
11:14
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Investors worry Monday morning about inflation, interest rates, France and China.
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The European stock exchanges
around 11 am with a loss of 2.3 percent. The Bel20
keeps it at a loss of 1.7 percent. Sofina
dips below 200 euros in Brussels, UCB
goes under 80 euros.
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The fact that Brussels loses less than the European average has to do with the lower content of interest-sensitive technology and e-commerce stocks. In Amsterdam, for example, the AEX loses 2.6 percent. Payment specialist Adyen
loses 6 percent, Just Eat Takeaway
tumbles 13 percent.
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The advancing inflation and interest rate expectations are having an effect on the bond market. The Belgian ten-year interest rate will rise by 5 basis points to 2.21 percent on Monday morning. The higher the yield on bonds, the more they present themselves as an alternative to stocks.
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The poor stock market climate is further exacerbated by China, where new covid measures were announced. That helps the price of aluminum plummet to its lowest level in six months.
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France
Finally it also helps the election results in France not† President Macron is in danger of losing his absolute majority. Investors are not looking forward to a scenario where Macron must seek compromises and become dependent on others to deliver on his ambitious reforms. BNP Paribas
in Societe Generale
lose up to 3 to 4 percent.
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Morgan Stanley strategist Michael Wilson believes that the stock markets still do not sufficiently take into account the impact of inflation on company margins and on consumer spending behavior. “I think 3,400 points for the S&P500 index is a reliable support level,” Wilson said. That is 500 points or 13 percent below the current level.
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Bitcoin
The risk aversion in the markets is also reflected in the crypto market. Bitcoin will fall below 25,000 this morning. Bitcoin has lost about 15 percent of its value in the past five days.
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