Wednesday, 03 March 2021 5:58 pm
(ABM FN-Dow Jones) After the volatility in the US economic data, the Amsterdam Stock Exchange flattened on Wednesday and bond yields appear to be rising again, which worries stock investors.
The AEX index closed unchanged at 663.35 points and the Midcap index closed almost unchanged.
Finished with financial pride at AEX’s first place helped by rising interest rates in the United States.
“We think a bank like ING is still cheaper, but the level of savings interest rates in the Netherlands remains negative,” said Jose Versteek, an analyst at InsingerGilison. “But apparently Dutch banks expect interest rates to rise in the United States.”
U.S. stock markets split after ATP’s disappointing performance report and continued growth figures for the services sector across the market and ISM in February.
Versteek says rising interest rates were again the most important factor. This again led to a 1.5 percent rise in ten-year U.S. government bonds.
Investors are worried that the central bank will raise interest rates, but Versteek says there is no reason to do so. “The market has been shocked by the $ 1.9 trillion support, while the US economy is in very good shape,” Versteek said. “Stimulus money will lead to higher inflation, but that does not mean that the central bank will be lower, according to Versteek.
“Our economists expect the central bank not to function until interest rates rise to about 3 percent. We are far from being there.”
Verstick pointed out that President Joe Biden had said today that there would be one vaccine for every adult in the United States by the end of May. This puts the US economy in a much better position than the European economy.
Like other European stock markets, the AEX rose early on Wednesday, with German media reports that German Chancellor Angela Merkel will discuss plans to extend the current lock-in until Wednesday, March 28. According to the Reuters news agency, there are plans to phase out the measures.
Traded at Euro / Dollar 1.2079. At the close of US stock markets on Tuesday, the currency pair was still moving to 1.2088, while at the close of European stock markets the plate was still 1.2074 level.
On a larger economic scale, the eurozone service sector contracted slightly less in February than in January. The index went from 45.5 to 45.7. Market economist Chris Williamson calculates a “double recession”, but he noted that helmets are much lower than the first corona waves.
In the afternoon ATP announced disappointing job growth in the private sector in the United States. This figure was half of the market count. “The leisure sector is not continuing to increase in January now with the growth of 26,000 jobs. In December last year, 500,000 jobs were lost in this sector, but this figure does not indicate a real turning point,” said Philip Marie, market analyst at Rabobank. ABM Financial News.
Indices of Purchasing Managers for the US service sector accelerated growth in the market, but also showed a significant slowdown in ISM. The last figure is usually overweight.
Despite a surprising increase in oil inventories due to continued capacity reductions since the Texas cold event, oil prices have risen 3 percent.
Economists recovered refining and thereby reducing crude oil stocks. As a result, gasoline and heating oil stocks fell much faster than expected.
According to Versteek, oil investors are watching the rise in OPEC + production. As a result, he believes oil prices will not rise further.
Recipients and followers
Among the major funds, financials were pork buyers, up 4 per cent for ING and NN Group and 3.5 per cent for Akan. Like the Randstad broadcaster, ASR topped the list.
Semiconductor funds ASML and ASMI ended with losses of 1.5 to 2 percent. Internet investor Process, which has a large stake in Chinese Tencent, still won 1 percent.
Galapagos had a loss of 2.3 percent. Food delivery company Just Eat Takeaway.com lost 2.2 percent.
The results at AMX are modest. Post NL and Arcadia rose 1.5 and 2 percent, respectively. Euro trade also rose more than 1 percent. Fawcett and the WDP lost just 2 percent.
Among small funds, Kentrian and Brunel ended in the top spot with price gains of more than 3 percent. Alpen, Chief Holding and Avantiam were closed.
Domestically listed CIDAC won within 4 per cent after raising interest on the value 8 company to 21.26 per cent. Value 8 is automatically valued at almost 4 percent more.
The Dow Jones Industrial Average won 0.4 percent while the broader S&P 500 index fell 0.2 percent as the final kong sounded on the tomrac. The Nasdaq index also lost 0.8 percent.
ABM Financial News; [email protected]; Redactie: +31 (0) 20 26 28 999.