Fear returns to Damrak, AEX closes with loss | Financial

After a turbulent close, the AEX closed 0.3% lower at 731.48 points. The AMX falls 0.8% to 1049.50 points.

The Damrak is avoiding a bigger downturn in Europe. Britain’s FTSE 100 is down 1.1%, Germany’s DAX is down 1.2% and France’s CAC 40 is closing in the red at 1.3%.

Technical analyst Nico Bakker calls 735 points a difficult hurdle for the AEX. “This must be taken to ensure the short-termuptrend to continue towards 750 or higher. If one of these days a black candle appear, a correction towards 725 can take place,” he warns.

In Asia, Japan’s Nikkei index closed 0.2% higher.

New York loses

Stocks are falling in New York. The Dow Jones is down 1%. Tech exchange Nasdaq limits the decline at the close in Amsterdam to -0.1%.

US purchasing manager figures disappoint, employment and inventory figures also fall short of expectations. The purchasing managers index for June fell from a record level of 64 in May to 60.1 points in June. Economists expected a decline to a maximum of 63.3.

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The Chinese taxi company Didi drops 25% on Wall Street. An intervention by the data traffic regulator pushes the company below its introduction rate: Didi has been removed from all major app stores.

Angst

Interest rates are declining: the yield on the US 10-year debt is 6 basis points lower at 1.378%, the German bund falls 5 basis points to -0.265%, fees in Italy and Spain are moving downward.

“You see fear creeping into the market among investors that the best of the recovery and the peak has now been, and that returning to stable economic growth will take longer than expected,” said Simon Wiersma of ING.

“There are now clear slowdowns in growth due to the lack of supply, especially with staff. Companies have a hard time finding employees. In the US, that could be easier if schools reopen and support from Washington is limited in September. But for now, markets are reacting with fear, especially in the bond markets,” said Wiersma.

Wiersma: ,,The German ZEW figure was much better than expected, but that of the preview was lower. Investors then look ahead and wonder how much better things can get, while at the same time seeing a revival of the Delta virus. That may indicate more lockdowns and a slowdown in growth.” A similar picture seems to be looming in the US.

ING says it is positive about European equities. “We think the number of corporate lockdowns here will remain limited.”

The oil price falls 1.9%. Gold gains 1.3% and is above $1800 per troy ounce (31.1 grams).

‘Split Fed’

Asset manager Renco van Schie of Valuedge states that investors are awaiting the publication of the minutes of the last meeting of the US central bank on Wednesday evening.

“Recently it has become clear that the Fed is thinking of phasing out the bond-buying program in 2022 and of raising interest rates in 2023. But Fed member Bullard recently indicated that interest rates may have to go up as early as 2022,” he says.

“There is a clear split within the Fed. Chairman Powell wants to delay an interest rate hike as long as possible, partly because as a Republican he has a better chance of being re-elected by Democratic President Biden in 2022.

According to Van Schie, the eruption of the corporate earnings season next week also means that investors are now taking it easy. He is not convinced that the data releases will push the stock markets further. “If companies do not clearly exceed expectations, they can suffer from profit taking.”

ASMI en Prosus leiden

At the Dutch main funds, semiconductor ASMI ended the day with 2% price gain. Prosus took the lead with a gain of 1.8%. The tech investor plunged 6% on Monday in response to the expansion of investigations by Chinese authorities into cybersecurity at online platforms.

Payment processor Adyen plus 1.3%, also data analytics company Relx wins 1.3%.

Steelmaker ArcelorMittal is the biggest loser with 5.1% downturn. At the bottom, financials write as Aegon (-3.7%) in ING (-3,2%).

lighting company Signify is 2.9% lower, after being taken off the buying list by the American Citi.

Shell drops 2%. The price of oil reversed in the afternoon, falling 3.2% to $74.70 a barrel after rising in the morning.

ABN down

Ended up with the medium-sized companies ABN Amro with a minus of 3.9% at the bottom. AMG, supplier of specialty metals, loses 4.1% at the lock.

Elves gains 0.4%, despite the notification to develop a solar park for the Rotterdam airport together with Unisun Energy.

Steel producer aperam rises 1.1%, after an advice increase to buy by the Swiss bank Credit Suisse.

real estate fund WDP adds 1.9%.

Fastned climbs 4.7% in the local market, in response to the purchase of ten fast charging locations in Belgium.

Neways drops 2.4% to €14.20. Industrial group VDL announced to renounce of a takeover of the Brabant manufacturer of electronic components, so that no takeover battle arises. Last month, the company’s board agreed to an offer of €14.55 per share from Enschede investor Infestos.

In New Amsterdam Invest has not yet been acted upon. This spac has raised nearly $50 million, intended to invest in other companies or make acquisitions.

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