Higher opening in Brussels planned | Beursduivel.be
(ABM FN) The Brussels stock exchange will open higher on Wednesday. Tuesday the star index was already 0.5 percent higher at 3,901.59 points.
European stocks are set to open higher as major stock markets in Asia found their way up this morning. worries about high interest rates and a slowdown in the global economy continue to hang over the markets.
Wall Street was still swinging between profit and loss on Tuesday evening, after a higher opening in which the Nasdaq briefly registered a gain of almost 3 percent. Shortly afterwards, much of the gains were lost and the US stock markets appeared to be on a fourth day of losses. The stock market strategy, however, stands, with investors focusing on Wednesday afternoon consumer price data and the possibility that a peak in development may be behind us.
Stock markets in the days have not yet started to decline, partly because investors are committed to the soft landing or the Federal Reserve will close to tame the high annual, according to asset manager Steve Chiavarone of Federated Hermes. “The answer to the question is up in the air and until then, volatility will remain high,” the asset manager said.
“Investors are clearly warring about what the Fed will do this year and how aggressively the money tap is being turned off,” said Invesco strategist Kristina Hooper. “This can also be seen from the expectations for the number of interest rate hikes this year, which vary widely. And the fluctuating expectations are reflected in the high volatility in the stock markets.”
HSBC does not rule out a sharp decline in economic growth in the coming months. Analysts of the bank are therefore very reluctant to take risks. “The stock market movements in recent days have been brutal, with a selloff in the stock and bond markets pushing the dollar sharply higher,” HSBC said.
“All indicators show that we can expect a significant slowdown in growth. Not just in 2023, but in the next three to six months.”
There may still be factors that could positively impact growth, including a sharp rally in the stock market and in government bond measures, in addition to significant dollar support.
Economists from Oxford Economic outlook in the short term not a global recession, but do see the risks of growth in 2023 and beyond. Factors such as a tighter Fed policy, lockdowns in China and high commodity prices will not lead to a major economic slowdown, according to Oxford. “The three factors are more likely to result in a slowdown in growth, according to the situation in 2015 and 2016, than a full-scale recession,” economists at Oxford Economics. “The slowdown in growth may already be enough to bring it down and slow the pace of rate hikes.”
The risks of a recession are higher in Europe than in the United States, Oxford warned.
Oil closed below $100 in New York on Tuesday, for the first time in nearly two weeks, amid concerns about the growth outlook for the global economy. The June West Texas Intermediate crude oil futures closed 3.2 percent lower at $99.76 on the New York Mercantile Exchange. The future recovered in Asian trading this morning, with the oil price trading above $100 again.
The euro/dollar is quoted at 1.0541. At the close of the US markets on Tuesday, the currency pair moved at 1.0530 and at the close of the European markets it was 1.0531 on the plates.
Company news
Ageas posted less than expected profits in the first quarter, but maintained its outlook for the whole book. The insurer is counting on a net profit excluding RPni of 1 billion euros for 2022.
Aedifica has seen profits in the first quarter and expects higher profitability in the current year.
Bekaert performed better than expected in the first quarter of 2022. “While the outlook for 2022 remains extremely volatile, we expect current organic sales growth to continue throughout the year,” said Bekaert.
Shareholders of Argenx have approved all items on the agenda of the annual meeting, including the reappointment of CEO Tim Van Hauwermeiren.
Ontex confirmed the exploratory Group with American Industrial Partners on Wednesday morning, above Bloomberg wrote about an acquisition Tuesday evening.
Wall Street closing positions
The S&P 500 closed 0.3 percent higher on 4,001.05 points on Tuesday. The Dow Jones index fell 0.3 percent to 32,160.74 points and technology exchange Nasdaq gained 1.0 percent with a close at 11,737.67 points.
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.