Third day win in a row in Brussels
(ABM FN) The Brussels stock exchange also closed the third trading day of 2023 with a profit. The Bel20 index rose 0.8 percent to 3,820.39 points.
According to ING, the stock markets are reacting enthusiastically to lower oil and gas prices and deflation in Germany. Interest rates are also falling, which is good news.
Investors, meanwhile, are already looking forward to tonight’s Fed minutes.
Neel Kashkari of the Minneapolis Fed said in an essay that the Fed should not cut rates again anytime soon. If the Fed slacks off quickly, as the deed did in the 1970s, “the fixed will flare up again,” under the central banker. “That would be a costly mistake.”
But in general, “there is a discussion of investor optimism as the new year begins with new opportunities and gains ahead,” said Tastyworks market analyst Scott Sheridan. “However, the underlying structural problems, such as high progress and the ongoing war in Ukraine, are still there,” he warned.
The IMF kicked off the new year by warning that a third of the world’s economy will be in recession by 2023, stifling corporate earnings.
“We believe, however, that the risk of a recession is overstated,” said market strategist Marko Papic of Clocktower Group
The market saw a series of purchasing managers’ indices for the services sector on Wednesday. The services sector in the eurozone contracted less sharply in December. The index increased from 48.5 to 49.8. The German, Italian and French services sectors shrank less and the Spanish services sector developed even faster in December.
German import prices rose by 14.5 percent year-on-year in November, resulting in a month-on-month decline of 4.5 percent. That is a sign of the future outcome. Tuesday turned out to have already disappeared in December.
And French consumer prices reported a little less difficult again in December. The achieved achieved 5.9 percent on an annual basis, against 6.2 percent a month earlier.
The euro/dollar was trading at 1.0605 and US 10-year yields have fallen below 3.70 percent.
Oil became almost 5 percent cheaper on Wednesday, while petrol prices in Europe also fell another 10 percent.
Risers and fallers
There was not much news to report today.
Campine expects to have more profit in 2022. That higher profit in the past year is due to “the successful integration of the new factories from the acquisition of the Recylex”, according to Campine. The stock rose 9.5 percent.
In the Bel20 most stocks went higher. Solvay gained 2.6 percent and VGP 2.5 percent. AB InBev won 2.1 percent.
KBC closed unchanged. The KBC share was placed on the sell list by Exane BNP Paribas, according to trader Bert van der Pol of Today’s Group. The Dutch ABN AMRO just received a buy recommendation.
Only Galapagos and Argenx were really in the red, with losses of 2.2 and 2.8 percent. These were the stocks that performed well on Tuesday.
DEME rose 2.5 percent in the BelMid. DEME won an American contract with revenues of 150 to 300 million euros.
Bpost became 3.1 percent more expensive and Recticel 4.1 percent more expensive, but Exmar and Euronav fell 3.1 and 6.8 percent.
Among the smaller shares in the Bel Small, Unifiedpost gained 4.8 percent, but Smartphoto fell 2.2 percent, as did Biocartis.
Wall Street
When the European stock markets closed, the S&P 500 index gained 0.9 percent, while the Nasdaq also rose 0.9 percent.
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