(ABM FN) The Brussels stock exchange is expected to start the trading week in the dark red again. Futures on the Euro Stoxx 50 index pointed to a loss of more than one and a half percent about an hour before the gong.
The Bel20 already closed 2.6 percent lower on Friday to 3,772.42 points. The index closed the previous week at 4,061.17 points.
Investors decided on Friday to sell European equities en masse after a fire broke out at Europe’s largest nuclear power plant in Zaporizhzhya, Ukraine, on Thursday night after a Russian attack. The attack underlined that Russian President Vladimir Putin is relentlessly continuing his war against Ukraine.
“Putin’s actions raise the question of whether Russia will follow scorched earth tactics to crush Ukraine’s resistance,” said CMC Markets market analyst Michael Hewson.
Military unrest, already tight commodity markets and the threat of oil sanctions against Russia are shaking oil markets to their foundations. Last week the price for a barrel of European Brent oil rose by no less than a quarter and this morning in Asian trade another 10 percent is added, so that a price of 130 dollars per barrel is on the plates.
“Oil is rising on the prospect of a complete embargo on Russian oil and products,” said Again Capital oil analyst John Kilduff.
On Sunday, US Secretary of State Antony Blinken told business channel CNBC that he is in talks with European partners and allies to look in a coordinated manner at the prospect of banning Russian oil imports while ensuring is still an appropriate supply of oil to world markets.
In Asia, Tokyo and Hong Kong are roughly 3 percent lower this morning, while Shanghai and Seoul lose more than 2 percent. The commodity-sensitive stock exchange in Sydney limits the loss to 1 percent.
In the meantime, the Australian dollar has been making impressive gains against the euro in recent weeks. The war in Ukraine, the high debts of mainly Southern European member states and the inability of the ECB to raise interest rates, among other things, are leaving their marks on the currency markets. At the beginning of February, the EUR/AUD currency pair was still trading at 0.6158, compared to 0.6812 this morning. An increase of more than 10 percent.
Company news
Resilux’s turnover increased by 15.4 percent to 431 million euros last year. Despite the increasing turnover over 2021, Resilux was able to make relatively less profit. EBITDA rose by 4.1 percent to 53.2 million euros, although profit after tax increased by 14 percent to 26 million euros.
Tessenderlo again submitted a permit application to the Flemish Region for the construction of a new steam and gas turbine power station.
Trading volumes of cash securities on Euronext increased in February on both a monthly and annual basis. In February, cash market volumes were up 5% on a monthly basis. On an annual basis, there was an increase of 7 percent. The average daily transaction value was 15.9 billion euros, which was 6 percent higher than in January.
Wall Street closing positions
The S&P 500 lost 0.8 percent Friday at 4,328.87 points and the Dow Jones index fell 0.5 percent at 33,614.80 points. The Nasdaq lost 1.7 percent to 13,313.44 points.
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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