Brussels neutral start
(ABM FN) The Brussels stock exchange will start on Friday without much movement. Futures on the Euro Stoxx 50 index pointed to a neutral opening about an hour before the stock market bell.
On Thursday, the Bel20 closed slightly higher with 0.1 percent at 3,915 points. Many European stock exchanges, on the other hand, found themselves moving forward from the starting blocks.
Wall Street took inspiration from the news that semiconductor manufacturer Broadcom is willing to put $61 billion on the table for the acquisition of cloud services provider VMware. Investors have accelerated with relief at the latest Federal Reserve meeting that appeared Wednesday evening that gave the message to the central bank that will not be scheduled.
“That sounds like music to investors’ ears,” said AvaTrade market analyst Naeem Aslam. “Nobody wants the Fed to get overly hawkish when there are concerns about a recession,” the market expert said.
The rally in the US stock markets on Thursday, according to asset manager Phillip Toews of Toews Asset Management, is mainly due to the idea that shares have been punished very hard in recent times. “At least that’s the sentiment now.” Toews does not rule out the possibility that the stock markets will take a step back.
Faced with a sharp decline on Wall Street, the Dow Jones index is on track to close on a weekly basis today, breaking through an eight-week run of negatives. A sort of year series was last recorded 100 years ago, in the year 1923.
The index of the approximately 500 largest US listed companies, the S&P 500, gained 2 percent on Thursday evening, while open tech exchange Nasdaq added 2.7 percent. Since establishing its all-time high on the second trading day of 2022, the S&P is now down around 16 percent. The Nasdaq is down nearly 28 percent since its all-time high of November last year. The loss for the more traditional Dow Jones index is limited to just 12 percent.
Alibaba boosts Hong Kong stock market
In Asia, investors were able to react this morning to strongly better-than-expected figures from the Chinese tech giant Alibaba, which were published on Thursday afternoon. The e-commerce giant turned out to have benefited greatly from the hit in recent months despite gloomy estimates, with annualized sales soaring 9 percent. Net profit came in at $2.6 billion. Shares rose 12 percent this morning.
In the wake of Alibaba, the other Chinese tech giant, Tencent, gained more than 2 percent in Hong Kong this morning.
The other main Asian stock markets are taking it easy, but are sometimes trading in the green. Sydney and Seoul gain about 1 percent, the Nikkei index in Tokyo is more than half a percent higher.
The oil price was clearly on the rise with an increase of more than 3 percent for the US oil future at more than $114 per VAT. This was partly due to a decline in US oil and gasoline stocks, according to analyst Robbie Fraser of Schneider Electric. In addition, oil prices moved along with higher stock markets. This morning in Asian trading, gains are accompanied by.
The euro wins. ten vs. dollar After the dollar has appreciated significantly over the past 12 months, with the dollar falling from about 1.22 to 1.04, the euro has been resilient over the past two weeks. The Fed’s minutes gave the euro an extra boost and the currency pair is trading at 1.0755 this morning.
Investors are looking at US consumer confidence in April, among other things. The PCE is a measure of it which is part of the official price index. This index has last passed to become the world’s most followed macro-digit.
Company news
The shareholders of Nyrstar NV will meet at a general meeting on June 28.
Wall Street closing positions
The S&P 500 index gained 2.0 percent on Thursday at 4,057.84 points, the Dow Jones index rose 1.6 percent at 32,637.19 points and the Nasdaq closed 2.7 percent higher at 11,740.65 points.
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