(ABM FN) The Brussels stock exchange is expected to have a lower opening on Tuesday. Futures on the Euro Stoxx 50 index pointed to a loss of more than half a percent about an hour before the gong.
The Brussels Bel20 index already closed lower on Monday, with the pharmaceutical sector in particular performing poorly. At the end of the day, the Bel20 was 0.7 percent in the red at 4,203.53 points.
On Monday, the US main indices took off after the announcement of the proposed reappointment of Fed chairman Jerome Powell. Investors appreciate the accommodative monetary policy of the US central bank in recent years and saw the continuity of the Fed’s policy guaranteed with the reappointment of the chairman.
Tech stocks, in particular, are negatively correlated with higher yields, and the Nasdaq opened more than 1 percent higher from its all-time high. Apple, the world’s most expensive stock by market capitalization, even opened more than 3 percent higher, shattering its all-time high.
However, during the trading day, the bond markets started to prepare for higher yields, causing sentiment among tech investors in particular to sour. Ten-year Treasury yields rose 8 basis points to 1.63 percent on Monday. In October the return peaked at 1.70 percent, while earlier this month a return of 1.44 percent was on the plates.
Tech investors chose eggs for their money and the profits for tech exchange Nasdaq evaporated. In the last trading hour, the decline even accelerated considerably and the Nasdaq eventually closed 1.3 percent lower. The more traditionally composed Dow Jones index, which also includes financial stocks that benefit from rising interest rates, still managed to close fractionally in the green.
It has been a short week on the stock market for American investors because of Thanksgiving. The US markets will be closed on Thursday and on Friday, the New York stock exchanges will close a few hours earlier than Black Friday.
Asian investors aren’t exactly shocked by the Nasdaq’s slump this morning. The Shanghai Composite is narrowly trading in the green, while the Sydney stock exchange, with many commodities funds and banks, gains 0.8 percent. The Hang Seng index in Hong Kong is feeling the downward pressure from tech stocks and the index is losing more than 1 percent. Tencent, Alibaba and Meituan give about 3 percent. The Tokyo stock exchange is closed today.
The US oil future fell more than 1 percent on Monday evening in New York to $ 76.75 a barrel. This morning in Asia, the future is again more than 1 percent price.
Last week, the WTI oil price still lost almost 6 percent, partly due to the increasing corona infections, which will curtail travel movements and depress demand for oil.
Investors are looking today, among other things, for the release of the preliminary composite purchasing managers indices in September, which will be released in the course of the trading day in the Eurozone and the Americas.
Company news
The battle for the takeover of the Walloon cable company VOO seems decided, after Orange Belgium has been selected to negotiate exclusively. Orange Belgium is expected to buy 75 percent minus one share of Nethys. The offer values VOO at 1.8 billion euros, according to Orange, and corresponds to 9.5 times EBITDA for synergies.
After an excellent third quarter, Ackermans & Van Haaren is on track to record record results this year. Subsidiary CFE raised its outlook for 2021. Turnover and net profit will return to pre-coronavirus levels, the dredger predicts.
Tessenderlo expects profit this year to be higher than previously thought. Adjusted EBITDA will be approximately 10 percent higher this year than last year, when it was EUR 314.6 million. Tessenderlo previously thought that adjusted EBITDA in 2021 would be the same as in 2020.
For Picanol, an increase in adjusted EBITDA of 15 percent is now forecast for 2021. That is 5 percentage points more than previously expected. In 2020, adjusted EBITDA amounted to EUR 361.7 million.
Galapagos has completed enrollment in its MANGROVE Phase 2 study with the investigational CFTR inhibitor GLPG2737 in patients with autosomal dominant polycystic kidney disease.
Cofinimmo concluded agreements to acquire three residential care centers in the Land Rhineland-Palatinate under certain conditions, two of which in Essenheim and one in Bruchmühlbach-Miesau. The investment for the three sites amounts to a total of approximately 39 million euros.
Xior will make an investment of 55 million euros to develop its Karspeldreef campus in Amsterdam.
Inclusion has bought a new building in Anderlecht and will rent it out to Samusocial. The social real estate company announced this on Tuesday morning without disclosing financial details.
Kepler Cheuvreux has started following D’Ieteren with a buy recommendation and a price target of 193.00 euros.
Wall Street closing positions
The S&P 500 fell 0.3 percent to 4,682.94 points Monday, while the Dow Jones index rose just 0.1 percent to 35,619.25 points. The Nasdaq lost 1.3 percent to end at 15,854.76 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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