Brussels turns red on Valentine’s Day | Beursduivel.be
(ABM FN) The Brussels stock market remained under strong pressure on Monday, as concerns about Ukraine continue to determine sentiment in European financial markets.
The Bel20 closed 1.9 percent lower at 4,004.89 points.
“The sovereignty and territorial integrity of Ukraine is non-negotiable for Germany and our partners. Should Russia nevertheless violate territorial integrity, then our partners and our partners will know what to do,” German Chancellor Olaf Scholz said on Monday.
The fear surrounding Ukraine does mean that the problem of higher rents is temporarily in the background. For example, the US 10-year yield rose to above 2 percent last week, but after reports of an impending Russian invasion, it fell again to 1.91 percent.
“The turnaround came during US trading hours after a warning from US National Security Adviser Sullivan,” said Mathias Van der Jeugt, Head of Market Research at KBC.
He said that Russian actions in Ukraine are possible before the end of the winter games on February 20. Sullivan’s verbal intervention with the ailing US stock markets led to a loss of up to 2.8 percent for the Nasdaq. The technical pictures are now all a return from below the annual lows,” said the KBC employee. Liabilities act like a safe haven, resulting in falling interest rates.
In the coming period, the center of gravity may shift away from the rental market and thus also away from the aggressive discount bidding, the KB member expects. “There is still an update between now and the main Fed and ECB policy meetings, but it will not be released until early March,” said Van der Jeugt, which could even lead to some rust on the interest rate market.
But there is more misery for investors. “Besides the geopolitical risk, the outlook is getting weaker and weaker. Perma-inflation eats away at the disposable income of a more reserved consumer. In addition to increasing transport and material costs, companies also have to deal with an income mass,” explains Van der Jeugt.
The Eurostoxx 50 tests the crucial fulcrum in the low 4,000 point zone. “The chances of a rupture bearing are rising rapidly. The next technical benchmark is the pre-Covid peak of 3,867 points. Then we quickly look towards 3,608”, said the KBC employee.
There were no macroeconomic data on the agenda today. The euro/dollar traded at 1.1303 visual price for a VAT Brent oil rose 3.4 percent to $94.50.
Risers and Fallers
All shares in the Bel20 closed in the red on Monday. The smallest decliner in the index was Elia with a price loss of 0.4 percent. Solvay, Umicore and A. Haaren lost 3.4, 3.2 and 2.9 percent.
KBC also 2.8 percent on Monday. RBC has lowered the price target for KBC from 87.00 to 84.00 euros. UBS raised the price target by 2 euros to 72.00 euros, but reiterated the sell advice.
Green can be found in the BelMid with a gain of 8.8 percent, otherwise only Fagron gained 1.4 percent. Analysts from Kepler Cheuvreux, KBC Securities and ING have become more enthusiastic about Barco after last week’s results.
D’Ieteren has made a binding offer for Bain Capital Private Equity’s Parts Holding Europe. D’Ieteren share 2.1 percent.
IBA signed a contract with SOGAZ Insurance Group for the delivery of a ProteusOne in Saint Petersburg, Russia. IBA does not say any financial details, but said such a contract is worth between 35 and 45 million euros. The company will receive its first payment this year. The stock fell 7.1 percent.
Among the smaller stocks, Sequana rose 4.6 percent, following the British Standards Institution’s market clearance for its alpha pump system under new European Union legislation.
Oxurion has released a week of additional results from part of its clinical trial of the previous THR treatment of diabetic macular edema, showing greater vision improvement at higher doses. No surprises according to Degroof Petercam. It requested 2.6 percent.
Acacia Pharma and Balta fell 5.8 and 6.4 percent.
Wall Street
At the close of the European stock markets, the technology index Nasdaq gained 0.7 percent, documentaries from S&P500 and the Dow-Jones lost 0.2 and 0.5 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.