The AEX closed 2% lower at 560.5 points. Technical analyst Nico Bakker points out that the decline remains unaffected at 575 points. “The top end of the market is therefore boarded up. If the average line holds at 555, there are again short-term buying opportunities towards 575. Below 555 means a serious weakening of the technical picture. ”
The AMX fell 1.6% to 838.1 points. The price signs in London (-1.7%), Frankfurt (-2.5%) and Paris (-2.1%) also turned deep red.
When the European stock markets closed, the Dow Jones index was 0.5% lower and the Nasdaq index had lost 1%.
The main reason for the selloff was US Treasury Secretary Steven Mnuchin’s comment Wednesday evening that a new corona support package is unlikely to be in place ahead of the Nov. 3 presidential election. “This shows once again that the main driver for the stock markets is short-term stimulus. The longer it takes for Joe Modaal to receive support, the more dangerous it becomes. Companies are better off idling than going bankrupt, because that destroys a lot more capital ”, says Koen Bender, director of Mercurius Vermogensbeheer:
Bender thinks that if Donald Trump loses the election, the bailout package won’t come before Joe Biden’s inauguration on Jan. 20. “Perhaps Trump is still trying to quickly reach an agreement with the Democrats, who want a much broader support package. It is entrusted to him to claim this as a victory. ”
The ongoing rise of the corona virus in many European countries is also worrying Bender, especially because it is leading to stricter measures. For example, France has declared a public health emergency and additional measures in Germany seem inevitable due to the record number of new corona infections. “The longer the lockdown lasts, the more damaging to the economy. I argue for hard financial consequences for offenders, who after all ensure that taxes have to be raised for a long time to reduce the debts.
On the Brexit front, another important deadline threatens to be missed. Tonight the moment will pass for which, according to British Prime Minister Boris Johnson, an agreement must have been reached on a trade agreement with the European Union before the departure of the British. However, both parties have barely come together during months of negotiations.
Unibail shoots up
The cyclical agency Randstad ended in the AEX with a minus of 4.3% at the bottom.
Royal Dutch Shell dropped 3.7%, moath in response to the 2-3% drop in oil prices.
It weighs heavily in the index ASML fell 3.5%. On Wednesday, investors already reacted negatively to the quarterly figures of the chip machine manufacturer.
ABN Amro limited the loss to 1.1%. The Public Prosecution Service has almost completed the money laundering investigation against the banking group. According to De Telegraaf, this allows negotiations about a settlement with the bank to start. Analysts suspect that the settlement for ABN Amro will amount to around € 400 million.
Unibail-Rodamco-Westfield was a positive outlier with a plus of 14.1%. A group of shareholders led by former Unibail boss Léon Bressler has launched an attack on the retail property fund’s plan to issue € 3.5 billion worth of shares. Bender calls this a risky strategy. “Unibail is in dire straits and if the share issue does not go ahead, the risk of bankruptcy increases considerably.”
Food delivery service Just Eat Takeaway won 1.8%. Wednesday’s well-received quarterly figures have led to many price target increases by analysts.
In the AMX went Fugro 12% down. In response to speculation in the market, the soil researcher reported to be in talks about a refinancing, including a share issue.
SBM Offshore and technology company TKH followed with minuses of 3.7% and 3.1% respectively.
Smallcap TomTom, which came out with uninspiring quarterly figures on Wednesday, fell 5.8%.
Shot at the local market AND 9.7% up. The navigation specialist will focus more on specific route information, such as areas with environmental zones, and will change its company name to GeoJunxion.
The supplier of software for customer contact centers CM.com 2.4%, after the publication of solid growth figures for the third quarter.
RoodMicrotec rose 1.1%, because the chip company is confident in a positive result in the second half of the year.
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