Tech stocks top performers on higher stock market | Financial

At a quarter past four, the AEX is 0.8% higher at 683.2 points. The AMX rises 1.2% to 1001.1 points.

Most other European stock exchanges are clearly not doing as well as the Damrak. The British FTSE 100, the German DAX and the French CAC-40 gain 0.2%, 0.3% and 0.5% respectively.

The American stock markets have got off to a good start. The Dow Jones index, which already reached a new record on Wednesday, is 0.6% higher after 45 minutes of trading. The technology stock-dominated Nasdaq index adds 1.4%.

Interest is falling

Due to the sharp rise in European bond yields, the ECB decided this afternoon to accelerate the pace of bond purchases. “It is striking that the ECB at the same time indicates that it will not necessarily use the size announced at the end of last year. And also mentions balanced risks. There is a danger that the ECB will use words to try to keep bond yields low and financial conditions flexible, without taking firm steps. The market can start testing it if inflation figures increase, ”said ING market analyst Simon Wiersma. He thinks that this could eventually force the ECB into larger purchases.

After the statement by the ECB and the explanation by President Christine Lagarde, bond yields initially fell sharply and then rebounded somewhat. Nevertheless, the interest on Italian 10-year government paper is still 9 basis points lower than Wednesday. The comparable interest rate in the US, on the other hand, rose slightly to 1.53%, while that in Germany fell 3 basis points to minus 0.34%.

ING believes that 10-year interest rates could rise further this year, towards 0% in Germany and 2% in the US. This perspective recently prompted the bank to reduce its equity weight to neutral in favor of bonds and commodities. In addition, the weighting of US equities has been moved to underweight and from Europe to overweight.

“The recent rotation from technology to more value stocks has usually only been short-lived,” says analyst Wim Zwanenburg van Stroeve and Lemberger. “For the long term, technological innovations are more decisive for investors. Fundamentally, that remains the trend. As corona vaccinations increase, technology companies will benefit more. ”

Corona boost

As expected, the European regulator EMA approved the corona vaccine developed by Janssen in Leiden this afternoon.

However, there is also less good corona news. Various European countries today hit the brakes sharply when administering the AstraZeneca vaccine. Vaccination progress is gaining momentum elsewhere. President Biden reports a smooth rapid vaccination and announced the purchase of an additional 100 million units.

In Germany, the number of new infections has again risen sharply in the past 24 hours. Chancellor Merkel says he expects another three to four difficult months, only after the start of the summer the situation would improve.

ASMI leidt

With the Dutch main funds, the supplier demands the semiconductor sector ASMI in the lead with a 5.1% profit. Kepler Chevreux increased the target price, with an unchanged buy recommendation, from € 150 to € 230.

Payment processor Adyen follows with a profit of 5%. Tech investment fund Prosus plus 3.1%.

Food delivery person Just Eat Takeaway continues Wednesday’s 6% increase after better than expected annual figures: + 3%.

Shell wins 0.3%. Contrary to its sustainability ambitions, the oil and gas company announced a former mining boss as its new chairman.

Financials are struggling due to falling bond yields. ING, ABN Amro in Aegon are at the bottom with minuses of 3.6%, 2.4% and 2.3% respectively.

Insurer NN (-0.6%) saw that activist investor Peter Singer with Elliott Investment Management has slightly reduced his capital interest to 2.93%. Elliot demanded measures last summer to create more shareholder value.

Besi way ahead

The chip supplier is available at the medium-sized funds Iron at 6.3% price gain at the top. Kepler Chevreux raised the target price to € 70 on a buy recommendation.

Fitness chain Basic-Fit strengthens 5.1% after a few days less. Fertilizer producer OCI rises 4%.

Coffee company JDPeet’s climbs 0.6% after a small price target cut by Deutsche Bank in enforcing its buy advice. The analyst expects strong growth for the ‘clear’ number two in the profitable sector if consumers will soon go outside to drink coffee more often vaccinated.

Technology company TKH, which published disappointing annual figures earlier this week, loses 2.1% after a recommendation cut by the German bank Berenberg.

The animal feed supplier included in the AScX index ForFarmers increases 3.6% on reported quarterly results. Jan van Nieuwenhuizen, member of the Rabobank Group Management Board until 1 September 2020, will replace Cees de Jong as Chairman of ForFarmers Supervisory Board.

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