Unibail down on weak stock market | Financial

The AEX closed 1.1% lower at 552.5 points, after falling to 548.3 points just after three hours. The AMX fell 0.1% to 825 points.

Most other European stock market indicators held up better than the AEX. The German DAX and French CAC 40 lost 0.2% and 0.5%, respectively. The UK FTSE limited the loss to 0.3% in response to the speech from the chairman of the British central bank.

When the European stock markets closed, the Dow Jones index was 0.2% lower and the Nasdaq index had lost 1.2%.

Investment strategist Ralph Wessels of ABN Amro attributes the hefty losses first of all to the disappointment about the Fed’s announcements on Wednesday evening. “The market had expected more concrete announcements of what will happen to interest rates at a specific inflation level. It was also hoped for an expansion of the bond purchase program. ”

Asset manager Renco van Schie (Valuedge) is more positive. “Powell has made it clear that we are in a long period of very low interest rates.” The Fed chairman stated that the interest rate in the US will certainly continue until 2023 will stay close to zero. That is longer than what analysts previously took into account. “Powell also indicated that even after that, interest rates will go up in small steps,” said Van Schie.

Wessels also points to various uncertainties as the cause of the gloomy mood among investors. “Stock markets usually fail in the two months leading up to the US presidential election. Moreover, the stock markets have already priced in a lot of economic recovery. We think Europe will fall back into recession in the fourth and first quarter of next year, albeit a mild one. And that zero growth awaits the US. The fact that a large number of American companies are now permanently closing their doors does not bode well for employment. ”

While ABN Amro has been underweight equities for some time, the bank reduced its overweight in technology stocks to neutral at the beginning of this month. “In response to the sharply increased valuations, we took some profit,” said Wessels.

Thump for Unibail

In the AEX was Unibail-Rodamco-Westfield the biggest loser with 10% lower end. The retail property fund wants to strengthen its financial position and is therefore spending € 3.5 billion in shares. The company also wants to dispose of assets worth around € 4 billion and its dividend and investments are being scaled back. All savings must be used to reduce indebtedness.

The banks ABN Amro in ING lost 3.2% and 3.3% respectively.

The heavy losses of the suppliers to the chip sector weighed more heavily ASMI (-2.9%) in ASML (-1.7%) on the AEX, given their higher weighting in the index.

Steel giant ArcelorMittal was with a plus of 3.2% day winner, helped by a buy advice from Bank of America Merrill Lynch.

Biotechnology company Galapagos continued the recovery that started last week after several dramatic weeks with a 2.4% higher end.

IMCD climbed 1.7%. The chemicals distributor already gained more than 9% on Wednesday after the announcement of a major acquisition in India.

In the AMX became real estate fund Eurocommercial Properties (-7.4%) pulled down by Unibail. The supplier to the chip sector Iron fell 3%.

Fugro won another 3.3%, after already winning 4.6% on Wednesday. Almost a month ago, rumors of a possible merger with British maritime services provider Acteon surfaced, which the soil researcher has denied.

The locally listed stock Euronext left 0.8%. The British bank HSBC reduced the advice for the stock market operator from ‘buy’ to ‘keep’.

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