Investors on the Amsterdam Stock Exchange will be watching their eyes on the interest rate hike on US government bonds on Friday. Bond yields have been on the rise for some time now due to improved economic outlook and higher inflation. However, investments in technology funds are becoming less attractive due to higher market interest rates. This caused a 3 percent drop in the price of the NASDAQ tech gauge on Thursday. On the other hand, banks and insurance companies benefit from higher interest rates.
Based on the opening indicators, it appears that the Amsterdam AEX Index is heading towards a lower start to the last trading day of the week. Other European stock markets are also expected to open with losses. Asian markets fell sharply on Friday.
In the battle against the coronavirus, many European countries will use the AstraZeneca Corona vaccine again now that the EMA has decided once again that it is safe. Within the next week, the Netherlands will again vaccinate people with the AstraZeneca vaccine. Many countries have discontinued the vaccine as a precaution because it may cause blood clots.
Attention is also being paid to the escalating tensions between Washington and Beijing. US Secretary of State Anthony Blinken said during the US-China summit in Alaska that some of the measures taken by Beijing pose a threat to global stability. Blinken said he was concerned about cyberattacks on the United States, the situation in Hong Kong and Taiwan, and Chinese “economic coercion” on US allies.
Oil and gas companies have also come into the spotlight after the US Secretary of State’s remarks. Blinken called on companies involved in building the controversial Nord Stream 2 gas pipeline between Russia and Germany to stop work “immediately”. Otherwise, they could face US sanctions. Shell is one of the companies involved in building the pipeline.
The Euro was worth $ 1.1920, compared to $ 1.1926 the previous day. Oil prices continued their decline after the sharp drop on Thursday. Oil traders fear that the delay in vaccinations could undermine the economic recovery from the pandemic and thus the demand for oil. The price of a barrel of US oil fell 1 percent to $ 59.43. Brent oil was also down 1%, at $ 62.66 a barrel.
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