The AEX index ends with a 2.1% plunge to 721.09 points after previously diving well below this limit. The main indicator is thus experiencing the worst trading day of this year. The stock market indicator set a record last Wednesday at a position of 747.35 points. The AMX is also under strong pressure with a 2.2% bump to 1011.5 points.
The price boards in London, Paris and Frankfurt are also colored deep red.
“The prices are going down across a broad front today,” notes asset manager Renco van Schie (Valuedge). The mood in the financial markets is being depressed, among other things, by growing concerns about the delta variant of the corona virus. “The virus will be with us a little longer than we expected at the beginning of this year. But it won’t have as much of an impact as last year,” says Van Schie.
The sharply lower oil prices also put the prices under pressure with a dip of almost 6% for the Brent. OPEC and allies such as Russia and Kazakhstan agreed on Sunday to increase oil production by 400,000 barrels per day from August.
The recent disappointing macro figures also play a role in the gloomy sentiment, emphasizes Corné van Zeijl, analyst at Actiam. “For example, the decline in consumer confidence in the US was striking. The great optimism among investors could quickly be dented.”
‘Sentiment too optimistic’
Van Schie has also felt that the sentiment on the stock markets has been too optimistic for some time and has therefore been underweight equities since the beginning of this month. That is the first time since March 2020. The asset manager has expanded its position in real estate funds and Asian corporate bonds.
This week, investors at Beursplein 5 are also focused on the quarterly figures of ASML, Unilever, AkzoNobel and Signify. In addition, the ECB will provide an insight into monetary policy on Thursday. The central bank recently changed its inflation target from ‘just under 2%’ to 2%. The question now is whether with this change the ECB will be inclined to keep interest rates low and buy bonds any longer. Asset manager Van Schie (Valuedge) does not expect the ECB to treat investors to a positive surprise on Thursday.
In the almost completely red AEX, retail property funds mainly receive Unibail having a hard time with a bloodletting of 7,3%. Steel giant ArcelorMittal heats back 3.5%.
The AEX is also burdened by heavyweight Royal Dutch Shell (-4.9%) after a sharp correction in oil prices. banking group ING also fell sharply with a weakening of 3.6% .
Furthermore, chip supplier is running ASMI against serious damage. The price takes a hit of 2.9%
Just Eat Takeaway is a positive exception with a plus of 2.6%.
Soil researcher Fugro (-7.1%) is falling hard in the AMX in response to the significantly lower oil prices.
Going to the local market Pershing Square 4.9% down. Billionaire Bill Ackman announces that his investment fund Pershing Square Tontine Holdings is forgoing the purchase of a 10% stake in Universal Music, the music label of pop stars such as Lady Gaga, Taylor Swift and Billie Eilish. According to Ackman, Pershing Square could not come to an agreement after discussions with the US regulator SEC. In the coming months, he will try to find another construction to allow the transaction to go through.
VAM Investments announced that it had raised more than €200 million in the IPO on the Damrak and Energy Transition Partners raised €175 million. The two investment funds are so-called special purpose acquisition companies or ‘spacs’. These are funds that have been set up specifically to invest in other companies or to make acquisitions. The market for these funds has grown strongly in recent times. Ten spacs have already been listed in Amsterdam this year.
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