(ABM FN) The Brussels stock exchange saw losses rise sharply on Wednesday morning. Around eleven o’clock, the Bel20 lost 2.1 percent at 3,361.70 points.
Investors are concerned about an increase in the number of corona infections in the United States. Wall Street also appears to be preparing for a lower opening on Wednesday, with futures on the Dow Jones index dropping more than 200 points. On Tuesday, the Dow Jones and S&P 500 index posted gains for the second day in a row, while tech exchange Nasdaq even set a new record led by Apple.
“There is a lack of direction on the exchanges and the movements cannot be predicted,” said Swissquote Bank analyst Ipek Ozkardeskaya. “We do see that investors continue to buy stocks on the dip while protecting themselves with investments that are considered safe havens in case there is a significant downturn,” said the analyst. “However, it is becoming increasingly clear that stock prices are kept artificially high.”
American virologist Anthony Fauci said on Tuesday that the next two weeks will be very important in curbing the pandemic. States such as Texas, Florida and Arizona continue to see an increase in the number of contamination cases. The European Union is said to be working on a proposal to refuse US travelers to Europe because the US pandemic is not yet under control.
On a macroeconomic level, it was announced this morning that the business climate in Germany continued to recover in June. The composite index for the German business environment for industry and trade has risen from 79.7 in May to 86.2 this month. Economists had expected an index of 84.3.
“This is the strongest increase ever,” said Ifo in an explanation. This is mainly due to the better expectations for the future, the institute stated. “German companies see light at the end of the tunnel.” Business confidence in France also recovered considerably.
ING has seen macroeconomic data pick up lately, and also noted the “less gloomy” purchasing manager indices, which were released on Tuesday. “Improving growth may mean less encouragement from governments and central banks,” said ING investment manager Simon Wiersma. “And perhaps also slightly less low expected inflation and therefore higher interest rates.”
The euro / dollar was trading at 1.1320 on Wednesday and oil was slightly cheaper.
Risers and Fallers
All stocks went lower in the star index. Barco kept losses at a negative of 0.9 percent after approval of a stock split.
Solvay went deeper after a warning for a sharp write-down due to the corona crisis and fell 3.2 percent to 70.24 euros. KBC Securities lowered the price target for Solvay from 100.00 to 90.00 with unchanged Accumulate advice. Argen-X lost 3.4 percent.
In the Bel Mid, Melexis won 4.3 percent. Mithra rose 1.0 percent after the US FDA accepted an application from the Walloon pharmaceutical company. Xior, on the other hand, fell 1.4 percent.
For the smaller shares, Greenyard went up 3.9 percent, but Celyad lost 2.8 percent. ABN AMRO put Greenyard on the purchase list and raised the price target from 5.00 to 7.50 euros. Greenyard’s results for 2019/2020 confirm that the recovery to healthy levels has started, seen from both EBITDA and leverage, bank analysts said. However, the recovery was overshadowed by a disappointing outlook for 2020/2021, they added.
ABM Financial News; [email protected]; Editors: +31 (0) 20 26 28 999.
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