(ABM FN) The Brussels stock exchange is preparing for a sharply lower opening on Friday. Futures on the Euro Stoxx index pointed to a loss of more than one and a half percent about an hour before the stock market bell.
On Thursday, the Bel20 was still 0.2 percent higher to 4,218.48 points, after a Chinese interest rate cut and easing US interest rate pressure gave investors some color again. The US 10-year yield is trading at 1.78 percent this morning, after peaking at 1.90 percent earlier this week.
Wall Street also had a brisk opening Thursday afternoon, supporting European stocks, but, as is often the case in the still fledgling stock year, US sentiment turned negative during the trading day, with a loss of 1.1 on the closing buzzer. percent on the plates for the main indicator S&P 500. Tech exchange Nasdaq fell even faster with 1.3 percent.
“The market has been sending conflicting signals several times over the past few weeks, but now it really looks like the broader market is starting to correct,” said T3 Live trader Scott Redler.
Due to Thursday’s drop, the Nasdaq index is now trading in correction territory, falling more than 10 percent below the November record. Rising interest rates put additional pressure on technology stocks as future earnings look less attractive.
Market analyst Naeem Aslam of AvaTrade predicts that investors will wait for the stock markets to correct another 5 percent more before going bargain hunting. That decline is not inconceivable, says Aslam, if the quarterly earnings season continues to disappoint.
After trading hours on WallStreet on Thursday, investors were faced with a bitter pill to swallow in this regard. Streaming service Netflix, one of the Wall Street success stories with a market cap of more than $200 billion, disappointed with its forecast of 2.5 million new subscribers in the current quarter. Analysts expected an average of 5.8 million new subscribers for the first quarter. Netflix now has nearly 222 million subscribers worldwide.
The higher-than-expected earnings per share in the past quarter were pushed aside by the unexpected slowdown in investor subscriber growth, and shares fell as much as 20 percent in after-hours e-commerce. The price reaction has had an impact on US index futures this morning, which point to a lower opening on Wall Street this afternoon.
Bitcoin also made a nosedive this morning with a drop of almost 8 percent to $ 38,893. That is well below the $40,000 that many investors saw as a major prop for the cryptocurrency.
Asian stocks took a step back this morning after the hosanna vote the day before, prompted by China’s interest rate cut. The Chinese and Japanese stock exchanges lose up to one percent. The main index in Sydney, which is loaded with financial and commodities stocks, is 2.3 percent lower.
The US oil future made a mark on Thursday evening in New York at $ 86.90 a barrel. In Asian trade, the future is trading up to 1 percent.
The corporate calendar is traditionally almost empty on Fridays. On the macroeconomic front, attention is focused on the index of the leading indicators in the US and preliminary consumer confidence in the eurozone in January.
Company news
UCB again achieved positive results with bimekizumab, this time with a Phase 3 BE COMPLETE study for the treatment of psoriatic arthritis. UCB plans to file an application for bimekizumab for the treatment of psoriatic arthritis with regulators in the US and Europe in the third quarter of this year.
Agfa-Gevaert increased prices for PCB Phototooling and medical products. The price increases are due to the high transport costs, but also the high price for raw materials.
Econocom appointed Laurent Roudil as general manager and CEO and Angel Benguigui as deputy general manager.
Wall Street closing positions
The S&P 500 fell 1.1 percent on Thursday at 4,482.73 points, the Dow Jones index lost 0.9 percent to 34,715.39 points and the Nasdaq closed 1.3 percent lower at 14,154.02 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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