Brussels will probably start the trading week in the green

Brussels will probably start the trading week in the green
Brussels will probably start the trading week in the green

(ABM FN) The Brussels stock exchange is expected to open higher on Monday. Futures on the Euro Stoxx 50 index were in the green about an hour before the stock market bell.

The Brussels stock exchange ended higher on Friday. With a final score of 3,913.37 points, the Bel20 rose 0.5 percent. On a weekly basis, the star index gained approximately one percent.

“We are in the middle of the earnings season, so there is more than enough movement in individual shares. The overall picture is predominantly positive, as is usually the case. Of course, that does not mean that prices are also rising, because that is also where the delusion of the day,” said ING investment manager Simon Wiersma.

“Although the results so far have been excellent, analysis shows that profit figures are rewarded with an average price increase of 1 to 2 percent, while setbacks send shares down an average of 5 to 6 percent. Investors are clearly more demanding,” says Frank Vranken of Bank Edmond de Rothschild.

Much attention was paid last week to the Federal Reserve’s interest rate decision and the American jobs report. As expected, the Fed left interest rates unchanged last week. “Powell’s comment that the next interest rate move is likely to be downward was little more than small consolation,” Wiersma said.

Friday’s American jobs report showed disappointing job growth of 175,000 in April, an unemployment rate of 3.9 percent and annual wage growth of also 3.9 percent. The market expected job growth of 240,000, a stable unemployment rate of 3.8 percent and wage growth of 4.0 percent.

The disappointing job growth was interpreted positively by investors because it increases the chance of a faster interest rate cut. The American ten-year yield fell more than 5 basis points, and on Wall Street the Nasdaq tech index was 2.0 percent higher on Friday evening. The S&P gained 1.3 percent.

The American indices also received a big boost from Apple, which gained 6.0 percent. Heavyweight Apple sold fewer iPhones, but the results were better than expected. The tech giant also announced a new purchasing program of no less than 110 billion dollars.

The Asian stock markets were mainly higher this morning, after the green close on Wall Street on Friday evening.

The leader was the Shanghai Composite with a gain of approximately one percent. Sydney climbed more than half a percent, while Hong Kong was narrowly in the red. The Japanese stock market was closed today.

The share price of the maker of smartphones for Apple, Taiwan’s Foxconn, rose approximately seven percent this morning after the announcement of a turnover increase in April of 19 percent on an annual basis.

Oil also became 0.4 percent cheaper this morning at $78.41 per barrel. Last week, black gold lost 7 percent on a weekly basis.

Oil prices were under pressure due to declining concerns about possible supply disruptions in the Middle East, the strength of US oil production and increasing US inventories, among other things. At the same time, there are signs of declining demand and deteriorating economic growth.

Investors today are paying attention to, among other things, the purchasing managers’ index for the services sector in the eurozone in April and producer prices in the eurozone in March.

Company news

Biocartis will collaborate with Merck to improve patient access to personalized medicine in the Middle East and North Africa regions.

Mithra enters into exclusive negotiations with Gedeon Richter regarding an offer for the activities of Estetra SRL, Neuralis SA and specific assets owned by Mithra R&D related to the E4 platform. Mithra announced this on Friday evening.

Wall Street closing positions

The S&P 500 index rose 1.3 percent to 5,127.79 points on Friday, the Dow Jones index gained 1.2 percent to 38,675.83 points and the Nasdaq was 2.0 percent higher at 16,156.33 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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The article is in Dutch

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