AEX probably starts neutrally in the run-up to US inflation figures

AEX probably starts neutrally in the run-up to US inflation figures
AEX probably starts neutrally in the run-up to US inflation figures

The Amsterdam stock exchange is preparing for a narrowly lower opening on Tuesday. Futures on the AEX index indicated a loss of 0.1 percent about an hour before the stock market gong.

The AEX had a good start to the week on Monday during a news-free trading day, with a gain of one percent to 753.41 points. Last week the index already rose more than 3 percent.

On Wall Street, the main indexes barely moved on Monday evening, awaiting new inflation figures from the US that will be released this afternoon at 2:30 PM. For October, annual inflation is expected to be 3.3 percent, compared to 3.7 percent in September. Core inflation is likely to have remained stable at 4.1 percent.

“We are increasingly confident that US inflation will reach 2 percent by summer of next year. The rate hikes appear to be working and we believe the Fed’s next step will be a rate cut if the economy need some support in 2024,” ING said in a preview.

Also interesting for the markets is the meeting between US President Joe Biden and his Chinese counterpart Xi Jinping, which is expected to take place on Wednesday in San Francisco.

Late on Friday evening, Moody’s lowered the outlook for the credit status of the United States from stable to negative due to higher interest rates and doubts about the ability of the US government to implement effective fiscal policy. The adjustment was taken as notice on the bond markets.

In the short term, policymakers on Capitol Hill must ensure that a budget deal is reached. Otherwise, another government shutdown threatens.

“This week we delve back into the US political saga as the government’s short-term funding deadline expires on November 17 and not much progress has been made towards striking a new deal,” Swissquote Bank said.

“Depending on the new deal, or lack thereof, we could see 10-year yields return above 4.80 percent,” Swissquote warned. The US ten-year yield was 4.62 percent on Monday.

Analysts estimate the chance of a shutdown next weekend at 40 percent.

The euro/dollar was trading at 1.0696 this morning. WTI oil also became more than one percent more expensive on Monday evening.

In Asia, the main indices managed to find their way up this morning. The leader is the stock exchange in Seoul with an increase of more than one percent.

In addition to the American inflation figures, investors are also looking at the release at 11:00 am of the German ZEW index.

Company news

TKH Group saw turnover increase in the third quarter, but less strongly than in the first half of the year, and it became more cautious about the outlook for 2023. For this year, TKH expects an EBITA of 230 to 240 million euros, after 2022. amounted to 235 million euros. However, TKH warned that it will now probably end up at the lower end of this bandwidth.

By 2027, Fugro aims for an EBIT margin of 11 to 15 percent, a free cash flow of 6 to 9 percent of turnover and a return on invested capital of more than 15 percent. The company expects to be able to achieve this through turnover growth from 2.1 billion euros now to 3.0 to 3.5 billion euros in 2027.

Euronext Amsterdam has agreed to a request from Majorel and Teleperformance to delist the Majorel share from the stock exchange due to the takeover by the French company. The last trading day is December 8 and Majorel is no longer listed on December 11.

Wall Street closing positions

The S&P 500 fell 0.1 percent to 4,410.09 points on Monday, the Dow Jones index rose 0.1 percent to 34,324.61 points and the Nasdaq was 0.2 percent lower at 13,767.16 points.

The article is in Dutch

Tags: AEX starts neutrally runup inflation figures


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