The AEX is likely to continue its rise up to the ECB’s interest rate decision

(ABM UN-Dow Jones) The Amsterdam Stock Exchange is likely to continue its rise on Thursday after a green lock on Wall Street on Wednesday night. Futures on the AEX index pointed to a surplus of nearly half a percent about an hour before the gong.

On Wednesday, the AEX rose 0.7 percent to 694.41 points, mainly thanks to ASML, which after the release of the quarterly figures managed to get rid of an opening loss of more than 4 percent and eventually closed more than 3 percent higher.

It was already the fourth trading day in a row that the AEX found its way convincingly despite high inflation and central bank austerity policies.

Market analysts point out that many doomsday scenarios did not materialize at the start of the earnings season. Higher costs can often be passed on so that margins remain fairly stable. In addition, there is a lot of money on the sidelines and the accumulated short positions are high, which can lead to an upward price pressure.

“The bulls appear to be back in the market. We have seen sharp advances in technology, cryptocurrencies and other risky assets in recent days,” said eToro analyst Callie Cox. “It’s remarkable, because in a weak economy, one would expect otherwise [meer defensieve] parts of the market would do well. But the animal spirit is back, at least for now, “Cox added.

On Wall Street, the Nasdaq technology exchange closed more than one and a half percent higher on Wednesday night. Figures from the streaming service Netflix were received with applause, and the share rose almost 7 percent. The gain for the more traditionally compounded Dow Jones index remained modest at 0.2 percent.

In its quarterly market report, Tesla reported that it maintains its long-term goal of increasing deliveries by an average of 50 percent per year in the coming years. Investors appreciated this outlook, and the share of electronic commerce rose one and a half percent.

In Asia, the Bank of Japan left interest rates unchanged at minus 0.1 percent this morning. Today at 13:45, the European Central Bank announces its interest rate decision, and the interest rate is expected to be raised by 25 to 50 basis points from -0.50 percent. It would be the first rate hike in 11 years.

Investors were particularly prepared for the explanation at 2.30pm by President Christine Lagarde. An instrument will then be presented to stem the rising interest rate differentials between Member States and to prevent a new debt crisis.

The Asian stock markets are mixed this morning with losses for the Chinese stocks and modest gains for the other major stocks.

September futures for a barrel of West Texas Intermediate crude closed nearly 1 percent lower on the New York Mercantile Exchange on Wednesday at $ 99.88.

This morning it was announced that the Russian gas pipeline Nordstream1 will again supply gas. This can be a relief, especially in Germany, where the large manufacturing industry is heavily dependent on Russian gas.

The gas pipeline appears to be running at 40 percent capacity.

Company news

ASMI’s revenue increased on a quarterly basis from DKK 517 million. EUR 560 million EUR. This was in line with the 540 to 570 million euros in turnover that ASMI itself reckoned with. Order intake increased to a record amount of 943 million euros. The gross margin was 47.5 percent, slightly lower than in the previous quarter, and the operating profit was almost 148 million euros. For the current third quarter, ASMI expects revenue of 570 to 600 million euros.

Besi achieved revenue of 214.0 million euros in the most recent quarter, a quarterly increase of 5.7 percent. The company itself expected an increase of about 10 percent in advance. Analysts’ consensus was aimed at a turnover of 225 million euros, a plus of 11 percent. Besi said Thursday that it expects sales to fall 20 to 30 percent quarter-on-quarter for the current third quarter. The gross profit is between 60 and 62 percent. “Whether the current weakness in the market is a temporary pause or lasts longer is hard to say,” Besi said, pointing to the conflicting signals for the economy, geopolitically and within its own sector.

Aalberts saw its annual turnover increase by 7 percent from 1.51 billion to 1.62 billion euros. Consensus also aimed at 1.62 billion euros. The order book increased significantly by 39 per cent.

Sligro has increased its revenue in the first half of 2022 and has seen an increase in its result and is again paying dividends.

Nedap’s revenue increased by 12 percent over the past six months to 112.4 million euros. In the first half of 2021, it was still 100.7 million euros. Recurring sales increased by 21 percent and now account for 30 percent of the total. Operating profit rose from 12.3 million to 13.3 million euros, but the profit margin fell from 12.2 to 11.8 percent.

Berenberg lowered the price target for ASML from 845.00 to 815.00 euros with an unchanged buy recommendation. Deutsche Bank raised the price target for ASML from EUR 475.00 to EUR 525.00. The advice remains.

Accell’s listing expires on August 22, 2022 due to the acquisition of KKR.

Wall Streets closing positions

The S&P 500 index rose 0.6 percent on Wednesday to 3,959.90 points, the Dow Jones index rose 0.2 percent to 31,874.84 points and the Nasdaq closed 1.6 percent higher at 11,897.65 points.


© ABM Financial News; info@abmfn.nl; Editors: +31 (0) 20 26 28 999;
Disclaimer

Leave a Comment