Red week start AEX planned

Monday, May 9, 2022 08:06

The Amsterdam Stock Exchange will probably continue to be under pressure on Monday. Futures on the AEX index pointed to a loss of just over 1 percent about an hour before the gong.

Last week, the AEX fell more than 4 percent on a weekly basis to 682.19 points, after many quarterly figures and rate hikes from the US Federal Reserve and the Bank of England. On November 18 last year, the AEX topped with a position of 829.66 points.

The war in Ukraine continues and Beijing adheres to strict corona measures. Energy prices continue to rise as a result, oil became 6 percent more expensive last week, and supply chain disruptions remain ubiquitous.

However, analyst Steve Brive of Standard Chartered Wealth Management warns against getting too gloomy, because in his eyes, many negative news are already priced in.

“If you look at indicators … from a market perspective, stocks are ‘oversold’ and it’s usually a buying opportunity,” Brice said. “I know there are many challenges… especially in light of the inflation outlook, but the markets are already pricing a very, very sharp monetary tightening. At some point, we will find a bottom.”

With a view to monetary policy, this week’s focus will be on Wednesday’s announcement of US consumer prices in April. Analysts expect a small annual decline to 8.1 percent after an inflation rate of 8.5 percent in March. Excluding volatile food and energy prices, core inflation is expected to rise by 6.0 per cent in April after rising by 6.5 per cent in March.

Prices of crude oil, gas and other energy raw materials rose in late February and March following the start of the Russian invasion of Ukraine. US oil futures peaked at $ 130 per barrel. barrel in early March. The future traded at $ 110 per barrel this morning.

Fed Chairman Jerome Powell said he saw signs that core inflation peaked in last week’s interest rate decision. Dutch inflation in April will be announced on Tuesday.

Today, Russia also celebrates its victory in World War II, the most important holiday of the year, including a military parade in Moscow. There is speculation that Putin in his speech officially wants to declare war on Ukraine and declare a general mobilization. However, some observers have suggested that Putin try to de-escalate the situation.

On Friday, Wall Street closed an unprecedented volatile trading week in the red. On Thursday, the Dow and S&P already lost more than 3 percent and the Nasdaq even 5 percent. On a weekly basis, the Nasdaq lost 1.5 percent. However, the Dow and S&P fell only slightly thanks to a rally early in the trading week.

In Asia, the Nikkei index in Tokyo lost more than 2 percent this morning. The ASX 200 in Sydney gives up more than 1 per cent. Chinese exports grew, as expected, much less sharply in April than a month earlier, while imports remained stable, resulting in a larger-than-expected trade surplus.

The earnings season has passed its peak, but there are still many companies on the agenda this week, including Beursplein 5 Ahold, Aegon, Boskalis and SBM Offshore. There are also many ex-dividend quotes.

Company news

In the first quarter, PostNL saw its revenue and profit fall more sharply than expected and lowered expectations for the entire year. The postal company now expects 170 to 210 million euros in normalized EBIT, from 210 to 240 million euros previously.

Artisan reported a 5.13 percent stake in Philips with voting rights. This interest is kept real in the medium term. On April 25 this year, Artisan announced for the first time a 3.45 percent stake in Philips with the same voting rights.

In April, Euronext’s cash market volume fell by 40 percent on a monthly basis. On an annual basis, there was a break. The average daily transaction value was 11.9 billion euros, a decrease of 30 percent on a monthly basis.

Jefferies resumed after Prosus with a Hold recommendation and a price target of $ 46.00. Deutsche Bank raised the price target for Aperam from 67.00 to 68.00 euros.

Arcadis has been selected to manage the design and development program for a new production facility for Wallbox electric car chargers in Arlington, USA.

DGB launches a green bond. This was announced by the developer of CO2 projects on Sunday afternoon.

Wall Streets closing positions

The S&P 500 index fell 0.6 percent Friday to 4,123.34 points, the Dow Jones index lost 0.3 percent to 32,899.37 points and the Nasdaq closed 1.4 percent lower at 12,144.66 points.

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