(ABM FN) The Brussels stock exchange is expected to have a green opening on Monday. Futures on the Euro Stoxx 50 index recorded a gain of barely half a percent about an hour before the stock exchange bell.
Last week, the Bel20 was almost two percent lower on a weekly basis at a closing level of 3,438.86 points. This made the star index a dissonance. The Euro Stoxx 50 index actually closed in the green.
“Since interest rates have been capped somewhat and the situation in the Middle East has not escalated further […] investors are putting on rose-colored glasses again,” investment advisor Rein Schutte of Noesis Capital told ABM Financial News. But the market expert doubts whether this is justified. The economy, especially in Europe, is increasingly struggling and this could have consequences for profits of companies.
On Wall Street, investor enthusiasm remained high last week.
On Thursday, Federal Reserve Chairman Jerome Powell ended an eight-trading day winning streak for the S&P 500, saying it was still too early to put a definitive end to the series of rate hikes, but optimism was back on Friday. with a gain for the S&P of more than one and a half percent, while the Nasdaq tech exchange even added more than two percent.
On Friday evening after trading, Moody’s announced that it is the last of the three major credit rating agencies to consider downgrading the ‘Triple A’ credit status of the US, due to increased interest rates, which lead to higher financing costs, and doubts about the US government’s ability to implement an effective fiscal policy.
Last weekend, the new Speaker of the US House of Representatives, Mike Johnson, unveiled a short-term spending plan aimed at preventing a government shutdown in the United States.
The measure does not impose any cuts and does not include financial support for Ukraine, Israel and Taiwan. The deadline to avoid another shutdown is November 17.
The American ten-year interest rate is slightly higher this morning by two basis points.
In Asia, stock markets traded cautiously this morning and the main indices are trading within a narrow range compared to Friday’s close. US oil futures also fell 0.8 percent this morning to $76.57 per barrel.
US President Joe Biden and Chinese President Xi Jinping will hold their first in-person meeting in about a year in San Francisco on Wednesday. Investors will be alert to statements about rising tensions with Taiwan, the situation in Ukraine and the Middle East, and technological sanctions.
The macroeconomic agenda is virtually empty today.
Company news
Solvay aims to become the market leader in essential chemicals in terms of size and costs, while remaining among the quarter of the most profitable companies in that sector. The company stated this when presenting its objectives for the next five years.
UCB received a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) for rozanolixizumab. UCB also announced that it will present a post-hoc analysis of its Exxelerate study, which investigated the effectiveness of certolizumab pegol and adalimumab treatments in patients with rheumatoid arthritis.
Proximus announced on Friday evening after the markets closed that it has raised 750 million euros with the issuance of green bonds. The bonds offer a coupon of 4.125 percent and are redeemable in 2033.
Exmar ended the third quarter with a net profit on a proportional basis of $39.5 million, compared to $317.4 million in the same period a year earlier. Earnings per share amounted to $0.69, from $5.55 a year earlier.
Wall Street closing positions
The S&P 500 rose 1.6 percent to 4,415.24 points on Friday, the Dow Jones index gained 1.2 percent to 34,283.10 points and the Nasdaq closed 2.1 percent higher at 13,798.11 points.
Source: ABM Financial News
ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
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