The AEX in Amsterdam started slightly lower on Friday, after a heavy loss on Thursday. UMG, Prosus and Just Eat Takeaway lead the way. Shell is the most sold. Air France KLM is doing well in the Midkap. Investors react to US President Joe Biden’s statements that a recession is “not inevitable” for the world’s largest economy.
The market is also reacting to the close on Wall Street, where the Dow Jones Closed 2.4% or 740 points lower and entered a ‘bear market’. Futures are now clearly in the plus, gaining 0.8% before the S&P 500 opens this afternoon.
In Amsterdam, the share AkzoNobel responding to a price target cut by Jefferies from $84 to $77, the ‘hold’ advice still stands. small cap fund TomTom sees that Teslin Participaties has increased its stake in the navigation company.
The effective interest payment for the 10-year US Treasury bond falls 4 basis points to 3.262%. Its German counterpart, the bund is up fractionally at 1.699%. Dutch government debt of that duration is higher at 2.078%.
“That interest rates are finally going up after a period of absurdly low levels, often negative, is normal and actually a blessing. It does mean that there is no room for fantasy investments,” said ING’s market strategist Simon Wiersma. Valuations of all asset classes are under pressure, bond prices, which move in the opposite direction to the development of interest rates, but also equities. “That this is happening is not surprising in itself, but the pace has surprised almost everyone,” said Wiersma.
In the foreign exchange market, the euros by 0.4% to $1.0505.
The European gas price with a small cooling still stands at $120 per terawatt hour. However, the storage is filling up at a good pace, according to Warren Patterson, head of raw materials at ING. The oil price drops slightly: Brent is 0.2% cheaper at $119 a barrel. Gold and silver are slightly declining.
The AEX Thursday closed 3.8% lower at 638.34 points. Stock markets in Europe experienced a similar drama: the DAX (-3.3%), FTSE 100 (-3.1%) and CAC 40 (-2.4%).