(ABM FN) The Brussels stock exchange is expected to open higher on Tuesday. Futures on the European Stoxx 50 index pointed to a gain of half a percent about an hour before the stock market bell.
On Monday, Brussels had another red trading day with a drop of 1.3 percent to 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 Nasdaq index was more than 2.5 percent in the red around the close of the European stock markets. Over the course of the trading day in New York, however, more and more bargain hunters emerged and thanks to a final sprint, the index even managed to close fractionally in the green, breaking a loss streak of four trading days. The S&P 500 main indicator still narrowly closed in the red.
Tech investors were initially put off by, among other things, the rising fees on US Treasuries, which reflect the approaching end of the extremely low interest rate policy. The yield on the American ‘treasury’ with a term of 10 years initially touched 1.80 percent on Monday. A drop to 1.76 percent then gave investors some confidence again.
The prospect of the start of the earnings season, as a result of which attention is no longer solely focused on interest rates and corona, may also explain the turn in sentiment. In recent years, the quarterly earnings season has often favored investors, resulting in much better-than-expected reporting and rising markets.
At the end of this week, the season for the quarterly results in the US will start with the major US financials JPMorgan Chase, Citigroup, Wells Fargo and BlackRock.
Many investors are putting money into banking stocks because they expect this sector to benefit from rising interest rates. Technology stocks, on the other hand, are seen as the offspring, as the relatively high valuations of these companies are often determined by future earnings that now have to be discounted at a higher interest rate.
In Asia, the main markets are mostly lower this morning. Tokyo, which kept its doors closed on Monday, and Sydney are down to one percent. The stock market in Hong Kong is slightly in the green.
The US oil future is also more than half a percent higher this morning, after a drop of just one percent to $ 78.23 a barrel Monday evening in New York.
ING analyst Warren Patterson pointed to reports from China, where millions of people in the town of Tianjin are being tested for the corona virus, after two omi crashes were discovered. This is happening in the run-up to the Winter Games that start in Beijing in a few weeks.
“Where other countries are learning to live with Covid-19, China is sticking to a zero-covid policy,” Patterson said. “That is a risk to oil demand, because China is the largest oil importer in the world. In addition, it is almost Chinese New Year, a period when there is normally a lot of travel, so any domestic travel restrictions will have an impact on oil consumption,” he said. the ING analyst.
Last week, oil prices rose about 5 percent due to the political unrest in Kazakhstan, good for an oil production of 1.6 million barrels per day.
This week, investors are mainly focused on US inflation in December, which will be released on Wednesday. An annual increase is expected from 6.8 percent in November to 7.1 percent in December.
Company news
VGP has successfully issued one billion euros in green bonds. “I am very pleased with the good reception by the market of our second green bond issue,” CEO Jan Van Geet said in a statement.
Wall Street closing positions
At a close of 4,670.29 points, the S&P 500 fell 0.1 percent on Tuesday. The Dow Jones index lost 0.5 percent at 36,068.87 points and the Nasdaq rose 0.1 percent at 14,942.83 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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