European stock markets are recovering today, just like the Brussels star Bel20 index, but the journey is full of bumps.
Brussels Star Bel20 and other stock market indices both recovered today after yesterday’s hits. The Bel20 recorded a recovery of about 1 percent. An hour before the close, selling pressure in the US caused a drop for a while. The largest European shares, members of the Eurostoxx 50, fell 4.1 percent yesterday, and the runaway stock market day in the United States was over on Monday evening.
European stock markets immediately opened slightly in the positive this morning after yesterday’s hit, but Monday night’s recovery was already in question in the first stock market trading in the US. These are the same topics that preoccupy the stock market: What impact will the interest rate decision of the US central bank, the Federal Reserve, have on fighting inflation?
According to US investment bank Goldman Sachs, a growth shock is imminent. If the Fed is slamming on the brakes too hard, that threatens to weigh on economic growth. In Europe, too, there are questions about the short-term potential of stocks. Central bankers are gradually removing their support. There was also an extra turbo on the stock in a higher shape MultiplesThis too is declining, said Peter Vanden Hutt, chief economist at ING Bank.
Nicholas Colas of Datatrek Research expresses himself in this sense as well. “We are cautious about stocks in the short term, but we remain optimistic about the medium and long term.”
After yesterday’s hit, the Bel20 index, which includes the top 20 stocks in Brussels, rose again above 4,000 points. Half an hour before the close, there is a rebound of more than 1 percent after a 3.7 percent drop on Monday. In the end, Bel20 closed 0.91 percent higher at about 4,030 points. KBC Group reported the strongest recovery and Colruyt, Proximus and Elia were also among the strongest gainers.
Frank Franken, equity strategist at Edmond de Rothschild, said yesterday that some recovery was possible after the hit. Trade fairs don’t go in a straight line. The VIX, which measures volatility in the stock market, has risen sharply, meaning investors’ journey looks bumpy.
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