Weather pandoering in Brussels | Beursduivel.be
(ABM FN) The Brussels stock exchange has again closed in the red, with losses increasing further during the afternoon, just like on the stock exchanges.
The Bel20 closed the day 3.7 percent lower at 3,993.65 points.
“It’s hard to stay calm at the moment,” said CBC Bank chief economist Bernard Keppenne. He points to fears of a conflict in Ukraine, the upcoming Federal Reserve interest rate meeting, tensions in the Middle East and omikron.
Inevitably, we will see a sharp rise in oil and gas prices, which will lead to even more pressure,” said Hallo, j.
Investors are therefore looking for safe havens, such as the Swiss franc, according to the economist.
According to Keppenne, this week’s Fed meeting “is clearly not a reassuring factor. Especially when the results of American companies are disappointing.” Netflix share price fell by 22 percent last week, after issuing a disappointing outlook.
Van Lanschot Kempen’s chief economist Luc Aben said there is little chance of an even more aggressive Fed next Wednesday.
But he also doesn’t expect the Fed to nip an economic recovery too abruptly in the bud. “Suppose the central bank raises the key rate in 2022 and 2023 by scalding 25 basis points. Then if the current terms start to be correct, that remains a final interest. What the US economy should be able to handle anyway,” says Aben.
Moreover, it remains to be seen whether the Fed will actually implement these eight increases, Aben said. In 2018, the US central bank also had plans, but after a planned future schedule.
At the macro level, investors paid close attention to sentiment among purchasing managers, which pointed to a slowdown in economic activity in both Europe and the US.
“The activity [in Europa] delayed for the second month in a row,” said Markit. Omikron took its toll. Consumers spent less at the start of the year, according to economist Chris Williamson of Markit. However, the impact appears to be not too bad and that the industry has been encouraged to improve in January, according to the economist.
“The sharp increase in corona cases has brought the US economy to a standstill,” he continued.
The euro came under pressure against the dollar on Monday. At the close of European markets trading currency pair at 1.1313.
Risers and Fallers
It was quiet on Monday with company news.
In the main index, Proximus is holding in with a price gain of 1.7 percent.
At the bottom of Bel20 were Melexis and Aperam, which fell 4 percent.
In the BelMid, the number of risers was also limited, with only Home Invest, with a plus of 0.4 percent.
D’Ieteren Group and Econocom gave 9.3 and 9.2 percent.
Among the smaller stocks, Vastned rose by 1.0 percent and Qrf too. Oxurion won 0.5 percent.
Balta fell 10.6 percent and Celyad 8.2 percent.
Wall Street
As the European markets closed, the US markets also fell sharply with a 2.6 percent drop for the S&P500.
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.