(ABM FN) The Bel20 index is expected to start higher on Monday. Futures on the Euro Stoxx 50 index pointed to a gain of more than 1 percent about an hour before the stock market bell.
The Brussels Stock Exchange was hit hard on Friday, although the star index still performed significantly better than in neighboring countries, where losses were between 3.5 percent and 4.5 percent. The Bel20 index lost 2.6 percent to 4,126.73 points. The index closed the previous week at 4,231.19 points.
Wall Street also had to take a significant step back during a shortened trading day on Black Friday with a loss for the main indicator S&P 500 of 2.3 percent.
In Asia, investors were the first to react to the new corona reality on Friday morning and the main indices lost 2 to 3 percent. This morning Asian equity markets are showing no recovery, but there does not appear to be any sign of panic either. The Nikkei index in Japan is down 1.6 percent, while Hong Kong and Seoul are roughly 1 percent lower. Sydney and Shanghai lose about half a percent. The airline Cathay Pacific has fallen sharply by 5 percent.
US oil futures lost as much as 12 percent on Friday amid fears of increasing travel restrictions, falling below $69 a barrel. In Asia, however, oil futures rose by 4.5 percent this morning.
“It looks like this variant may not be as dire as the market feared Friday, but it does lead to investors becoming more cautious,” said Nikko Asset Management analyst John Vail.
The World Health Organization (WHO) said in a statement on Sunday that it is still unclear whether infection with the omicron variant causes a more severe course of the disease than other corona variants, including the delta variant.
Investors are now looking with extra attention to China, which with a successful corona approach managed to show the disease earlier.
“The proliferation of highly communicable variants could ultimately make China’s zero-covid strategy unsustainable. But in the short term, there is a good chance that the authorities will implement very strict measures,” said Capital Economics analyst Mark Williams. Previously, the Chinese authorities did not shy away from implementing very strict lockdowns, including completely shutting off cities from the outside world.
The earnings season is now over and the macroeconomic agenda is scantly filled today. Investors will, however, gain insight into German inflation in November and upcoming US home sales in the US.
Company news
The Belgian biotech company Bone Therapeutics sold the worldwide rights to cell therapy product Allob to Link Health. Under the deal, Bone Therapeutics can receive up to €60 million in milestone payments and royalties of up to 25 percent of net sales.
Mithra is organizing an investor day today, during which it will discuss the expansion of its Donesta study and the acquisition of a new cancer treatment.
The engineering firm ABO-Group and Floris Pelgrims made a new financial chief executive. He was most recently financial director at BESIX Stay.
Berenberg raised the price target for Ekopak from 19.70 to 20.60 euros with a repeat of the buy recommendation.
Wall Street closing positions
The S&P 500 lost 2.3 percent Friday at a close of 4,594.62 points, the Nasdaq fell 2.2 percent to close at 15,491.66 points. The Dow Jones index ended 2.5 percent in the red at 34,899.34 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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