AEX begins the new week convincingly
Monday, 08 March 2021 5:52 PM
(ABM FN-Dow Jones) The Amsterdam Stock Exchange has convincingly kicked off the new trading week. At 665.65 points, the AEX index was up 1.8 percent on Monday.
According to Lynx’s Justin Blikemollin, AEX is in the consolidation phase, but “significant support levels remain intact,” according to the investment specialist.
If the AEX index manages to breach 671.5 points in the short term, then the index will have “enough strength again” to test 689 points and with that, a new record high will be on the horizon, Blemmullen says.
This weekend, the US Senate approved President Joe Biden’s $ 1.9 trillion support package to tackle Corona. The proposal has been modified at some points and must now be reconsidered by the House of Representatives. This is expected to happen this week, after which there will be a new vote and Biden can sign it with an agreement.
Meanwhile, the US interest rate continues to rise for ten years. On Monday it was 1.60 percent, and the German variant was -0.27 percent.
According to Plekemolen, the higher interest rate is “good for many stocks on the Dutch stock exchange”, such as financial stocks, which have recently benefited from this and were also on the rise on Monday.
The European Central Bank will also release its interest rate decision later this week. No changes are expected, but Chairman Christine Lagarde will definitely comment on the interest rate hikes, according to market experts.
Economists at Bank of America believe Lagarde will reassure markets that accommodative monetary policies will be maintained in the long term to ensure favorable financial conditions.
Economists said: “We do not expect a slight tantrum in Europe.”
On the macroeconomic front, calm prevailed on Monday. The unexpected drop in industrial production in Germany in January was staggering. Minimum growth was expected, but production was down 2.5 percent compared to December.
According to ING economist Carsten Brzeski, the decline shows that it will be difficult for German industry to keep the entire economy afloat and prevent a new economic downturn.
Toward the end of the week in Amsterdam, the EUR / USD fell 0.4 percent to 1.1862.
A barrel of WTI crude oil was trading down half a percent at the time, just under $ 66. Oil prices rose this morning after reports of Yemeni Houthi forces targeting a major oil port in the Kingdom of Saudi Arabia on the Persian Gulf this weekend.
Financial data closed strongly on Monday. Egon, ENG and IBN Amro rose 5 to 9 percent. Shares in Unipil Rodamco Westfield rose more than 8 percent.
The biggest drop was Prosus, losing 1.2 percent, while the Galapagos were down 0.5 percent. Moreover, all AEX stocks closed in green.
At AMX, OCI and Boskalis have done a good job with price gains of over 4 to 6 percent. Here too, real estate has performed well, with European commercial real estate up by more than 3 per cent.
OCI wants to accelerate its operating strategy, which will increase Adjusted Operating Income (EBITDA) by $ 75 million annually over the next 3 to 5 years. This was made clear on Monday by the new fertilizer, melamine and methanol targets, which were introduced during ESG Strategy Day.
The company also wants to reduce carbon dioxide emissions by 20% by 2030 and expects to be climate neutral by 2050.
Corbion is bottom of the league by more than 2%. Barclays lifted Corby’s goal on Monday.
Wereldha had a good day with her beanie hats. The stock won by 5 percent. Sligrow was the leader with nearly 8 percent. BAM stock is down roughly 1 percent and losses in AScX have been very limited.
AMG Vanadium has entered into a long-term agreement with a major oil refinery in North America to process and recycle used catalysts. AMG reported Monday afternoon without providing financial details or mentioning the name of the customer. AMG shares fell 0.5 percent.
Domestically, Beter Bed featured with profits of around 15 percent.
Wall Street Ranking
US exchanges were mostly green around the Amsterdam hatch on Monday. The Nasdaq index fell 0.6 percent.
ABM Financial News; [email protected]; Revised text: +31 (0) 20 26 28999.