Red opening Bel20 anticipated after American tech figures

(ABM FN) The Brussels stock exchange is expected to start sharply lower on Friday. Futures on the Euro Stoxx 50 index indicated a loss of more than 1 percent an hour before the gong.

On Thursday, the Bel20 closed 0.4 percent lower at 3,036.59 points.

Market analyst David Madden of CMC Markets found that the European markets on Thursday failed to hold on to the opening profits after the price drop on Wednesday. Investors were cautious, he said, now that new measures have been announced in Germany and France due to the rapidly increasing number of corona infections. The US elections next Tuesday also cast their shadow ahead.

As expected, there were also no changes at the ECB, but the central bank clearly hinted at further intervention in December.

Wall Street did partly recover on Thursday evening with a profit for main indicator S&P 500 of 1.2 percent, after a drop of 3.5 percent on Wednesday. However, all eyes were on the after-market figures of the tech giants Apple, Amazon.com, and Alphabet.

Receipt of the figures was negative on balance and futures on the S&P 500 index are down about 2 percent this morning. Nasdaq futures are selling around 2.4 percent.

The negative outlier was Apple, which after the market gave more than 4 percent price in the electronic trade after its figures report. In regular trade, the share rose by almost 4 percent. The group saw the turnover of the number of iPhones sold fall significantly in the past quarter, partly because the launch of the new iPhone 12 was postponed due to production interruptions due to the corona outbreak.

Increased sales of iPads and Mac computers still increased revenue slightly from $ 64.0 billion to $ 64.7 billion, but net profit was still at $ 12.7 billion, from $ 13.7 billion a year earlier . This was still better than the average expectation of analysts, but an outlook was unexpectedly lacking.

Amazon.com actually benefited from the corona pandemic as the number of online shoppers increased exponentially. Sales rose by no less than 37 percent on an annual basis in the past quarter, from just under 70 billion to more than 96 billion dollars. The online retail giant had issued a revenue forecast for the previous quarterly update of $ 87 billion to $ 93 billion. However, the share in the electronic trade after-market was barely 2 percent lower, after a gain of 1.5 percent in regular trading.

Facebook also recorded more than 2 percent lower, after an increase of no less than 5 percent in the run-up to the numbers during regular trading. The social media giant suffered from an advertising boycott of a number of large international companies in the past quarter, but still managed to exceed market expectations. Net profit rose 29 percent year-on-year to $ 7.8 billion.

Figures from Alphabet, Google’s parent company, were received with applause. The share rose by more than 6 percent after the market. The share already closed in regular trade with 3.4 percent higher. “We have had a strong quarter,” said CEO Sundar Pichai, attributing this to the investments the company made in artificial intelligence, for example. dollars to $ 11.2 billion.

In Asia, the main stock markets are lower this morning, with Apple suppliers weighing on the indices, among others. Japan and Seoul are losing more than 1 percent. The Shanghai Composite and the Sydney stock exchange fell roughly half a percent.

The oil price was under considerable pressure on Thursday. The December future for a barrel of crude oil closed 3.3 percent lower on the New York Mercantile Exchange at $ 36.17. On Wednesday the oil price already closed 5.5 percent lower. Lockdown measures that reduce mobility weigh on sentiment for the black gold.

The euro / dollar currency pair was stable at 1.1683 this morning.

In addition to company figures, investors today also have an eye for, among other things, American consumer confidence and the preliminary economic growth in the eurozone in the past quarter.

Company news

In the third quarter, Proximus saw the results of its international subsidiary BICS under pressure due to the corona crisis, but saw the group’s EBITDA decline less sharply than expected. Proximus expects to close the year 2020 with an underlying EBITDA capex of at least 830 million euros. This amount includes estimated group investments of less than 1 billion euros.

Exmar’s proportional consolidation revenue, which includes the joint ventures, increased to $ 217.9 million in the first nine months of 2020 from $ 163.2 million in the same period last year. EBITDA amounted to USD 105.6 million compared to USD 67.8 million last year.

Kinepolis has been hit hard by the measures to limit the spread of the corona pandemic, but it said it withstood the corona crisis well in the third quarter. Kinepolis received 2.4 million visitors in the past quarter. This is a quarter of last year’s visitors.

Cofinimmo is considering the purchase of a number of companies that own several Belgian residential care centers and an office building in the Tour & Taxis district in Brussels. The company confirmed this after rumors in the media.

Recticel saw sales recover in the third quarter, but the first nine months still saw a significant decline in sales. If the recovery continues in the second and third quarters and COVID-19 has no further impact, Recticel believes that consolidated net sales and adjusted EBITDA from continuing operations can be expected to be at the level of the second half of 2019. This is in line with the message that Recticel already issued in July.

Bone Therapeutics wants to raise fresh capital in the current fourth quarter. Bone announced that it was in talks with potential partners to explore opportunities in the market. In addition, the plan is to raise money in the current quarter. Existing shareholders have already indicated that they want to participate in the capital increase. How much money Bone wants to raise was not disclosed.

The investment manager from Leuven Quest for Growth made a profit again in the first nine months of 2020, although the profit was higher a year earlier.

Closing positions Wall Street

The Dow Jones won 0.5 percent on Thursday at 26,659.11 points, the broader S&P 500 index rose 1.2 percent to 3,310.11 points and the Nasdaq tech exchange even gained 1.6 percent on 11,185.59 points.

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

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