(ABM FN) The Brussels stock exchange traded significantly higher on Monday. Chinese real estate worries failed to ruin the mood on the first trading day of the new year. The calendar was mainly colored by purchasing managers indices for the industry.

Towards the end of the morning, the Bel20 index went 0.6 percent in the green at 4,336.77 points.

2021 was a good year for the stock market. The Bel20 index was able to gain 19 percent, the Eurostoxx50 gained more than 20 percent. The US S&P500 index, on the other hand, was able to soar 27 percent.

The reopening of the economy, a few strong tech companies such as Tesla and Microsoft, but also the stimulating policy of the central banks together form a strong tailwind.

Vincent Juvyns, market analyst at JP Morgan Asset Management, looked ahead with ABM Financial News to the new year and follow-up triggers, positive or negative, for stock prices.

“First, there is omikron. Let’s hope this doesn’t get too acute, but in a single region there is still less immunity, which is a concern. Just look at China and Asia in general”, explains Juvyns. “Secondly, there are the price increases and wage spirals. Everywhere you see very high prices and wage growth. For at least half of the year, and probably longer than that, we stay in a high environmental environment. The impact of consumer behavior and corporate margins are also important here, as are monetary policy, the impact on interest rates,” said the economy, finally pointing to geopolitical tensions. “The relations between Russia, China and the United States are not really optimal at the moment.”

In Asia, stocks in Australia, Japan and mainland China closed this morning. The Hong Kong stock market is half a percent in the red.

Investors today are keeping an eye on sentiment among purchasing managers.

The industrial growth rate in the eurozone slowed in December. The purchasing managers index fell from 58.4 to 58.0. The preliminary indication for December also pointed to 58.0. The German growth rate remained stable, which declined slightly in France, but was higher than expected. The Italian index also came in higher than expected with a robust industry and the Spanish index fell again in one month.

During the afternoon we find out the American purchasing managers index for the industry, from research firm Markit in any case. The more followed index of ISM will not follow until Tuesday afternoon.

Oil prices declined slightly, with the euro/dollar trading at 1.1358. The Turkish lira, meanwhile, continues to lose ground, gaining a staggering 36 percent in the country in December.

Risers and Fallers

Investors should not count on directional company news yet. Still, the shares decided to price higher.

In the main index, the largest player, brewer AB InBev, won 2.9 percent. On the other hand, biotech company Galapagos was down 2.0 percent.

In the second row, Deceuninck rose by no less than 8.6 percent. A weekend interview in The Times with the company’s top executives could spark investor interest in the PVC window profile manufacturer.

Orange Belgium was a subject in the BelMid with a loss of 1.2 percent.

Among the smaller companies of the BelSmall index, Nyxoah was the winner with a plus of 7.4 percent. Biotech company Acacia Pharma also won a nice 5.0 percent. Ekopak was on the other side with a loss of 1.5 percent.

Source: ABM Financial News

From Beursplein 5, the editors of Financial news from ABM keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make.