AEX is likely to start higher on the day of the ECP interest rate decision

AEX is likely to start higher on the day of the ECP interest rate decision

Thursday, March 11, 2021 7:56 AM

(ABM FN-Dow Jones) The Amsterdam Stock Exchange is expected to open in green on Thursday. The futures of the AEX index showed a gain of 0.3 percent an hour before the stock market Kong.

On Wednesday, the AEX was already up 0.4 percent at 678.03 points. U.S. interest rates fell slightly on Wall Street on Tuesday night, giving investors confidence after a sharp rally in technology stocks.

This afternoon, all eyes are on Frankfurt, where the European Central Bank will announce its interest rate decision at 1:45 pm, following which President Christine Lagarde will explain at 2:30 pm.

Rising interest rates, especially in the United States, have led to the rise in ECP. As a defender of financial stability in the eurozone, the ECP At present interest rates cannot be allowed to rise because high interest rates, coupled with rising budget deficits and dark economic opportunities, will immediately plague southern member states, especially with major financial problems.

Therefore, ECB experts predict that the central bank will use tools to lower interest rates, such as buying more government securities. According to ING economist Carsten Presky, doing nothing does not signal to the market that rising interest rates are justified by economic conditions.

“It simply came to our notice then [en stijgende rentes]Said Presky.

Dow Jones at the highest level

Wall Street received support Wednesday for news that the House of Representatives had approved a $ 1.9 trillion Corona support package. President Joe Biden plans to sign the bill this week.

The improved economic outlook, according to market followers, gives priority to sectors such as banking and energy, which benefit from the recovery, as opposed to the technical stocks that were firmly in the saddle during last year’s locks.

“We see a real cycle from growth stocks to value stocks,” said Altaf Qassam, investment strategist at State Street Global Advisors. “Previously backward companies like financial services and energy have been leading the way recently,” he said.

Wednesday evening was that too. The technology transfer closed the Nasdaq flat, while the more traditionally passed Dow Jones index closed firmly with a gain of 1.5 percent on its all-time high.

The sentiment in Asia was also positive this morning. Seoul and Shanghai are up about 2 percent, while the Nikkei index is up 0.6 percent and the Sydney stock market is flat.

April futures for the New York Mercantile Exchange traded up 0.7 percent at $ 64.44 a barrel on Wednesday, up from $ 13.8 million a barrel last week, according to the latest data from US energy company EIA. Million barrels.

In Asian trade this morning, the futures rose 0.7 percent.

The Euro / Dollar pair traded flat at 1.1924 this morning.

In addition to the ECP’s interest rate decision, investors are also focusing on weekly support requests in the United States today.

Company News

The volume of Dutch animal feed performers fell 3.5 percent to 9.74 million tonnes last fiscal year. However, the base EPIDTA increased by 8.7 per cent in 2020 to .2 96.2 million. Performers wants to significantly reduce costs in the coming years, and the basic EPIDA should be raised to 125 125 to 13 135 million by 2025.

The Dutch government still wants a second representative on the Air France-KLM group. This was written by Head Finance Seal Doc Platt based on a brief report sent by the Dutch government to the French Stock Exchange Commission AMF.

Sigmund de Vries, CEO of Farming Group, will present a presentation today at Biogapital Europe.

Bernberg lowered the price target for TKH from 50.00 to 45.00 euros while maintaining purchase advice. Investment Bank slashed the target price of JTE Beats from 41.00 to 38.00 Euros. Here again the purchase advice was repeated.

Lavid signed a framework agreement with the Netherlands Sorgh Behre (NZB) for further cooperation.

Closing levels Wall Street

The Leading S&P 500 Index was up 0.6 percent at 3,898.77 points on Wednesday, the Dow Jones Industrial Average was up 1.5 percent at 32,297.09 points and the Nasdaq Flat was at 13,068.83 points.

ABM Financial News; [email protected]; Redactie: +31 (0) 20 26 28 999.