January 25, 2022

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Hogere start Bel20 voorzien

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Photo: Euronext

(ABM FN) The Brussels Stock Exchange is expected to open higher on Monday. Euro Stoxx 50 futures pointed to a half-percent gain an hour before the stock bell.

The Brussels Stock Exchange closed on Friday, after a disappointing US jobs report, down 0.2 percent at 4,301.59 points.

Stock markets around the world came under pressure last week after the Federal Reserve’s latest meeting minutes confirmed that a majority within the central bank wanted interest rates to rise quickly. The Fed also plans to start reducing its portfolio of about $9 trillion in bonds and other assets relatively soon.

Unprecedented monetary financing, which has significantly increased the money supply, is believed to be the main driver of the stock market’s rally since it hit its lowest levels in March 2020, at the height of the coronavirus crisis.

As the trading week comes to a close, calm has returned to the markets. “It appears that investors’ worst fears are about the Federal Reserve shutting down money sooner than expected,” said ING chief investment officer Simon Warsma.

But investors remained cautious, in part because bond market yields rose sharply. This morning the yield on the 10-year US Treasury was 1.77 per cent. At the turn of the year, the 1.50 percent yield was still on the plates. Given the high yields, government bonds can be an alternative to volatile stock markets for risk-averse investors.

Friday also emerged that job growth in America came under pressure in December, while average hourly wages rose at least 4.7 percent year on year. This has been interpreted by Wall Street investors as the worst of both worlds, with the Fed tightening under pressure from rising inflation, fueled not only by global supply chain problems but also by high wage costs at a time when progress may be starting. falter.

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On Wall Street, the index of the 500 largest US companies, the S&P 500, closed on Friday 0.4 percent lower for the fourth consecutive day of trading, after closing from an all-time high exactly a week ago. The Nasdaq also lost just under one percent on Friday, leading to a 4.5 percent loss on tech-laden index panels on a weekly basis.

In addition to interest rates, investors are also closely watching the rise of the omikron variable. Despite a record number of infections, governments in Europe so far see no point in a strict lockdown, with the exception of the Netherlands, after it is now clear that Omicron is less sick than the Delta variant.

In Asia, the Japanese stock exchange was closed this morning for a holiday. Hong Kong’s stock market gained 0.8 percent, while the Kospi in Seoul was down just 1 percent.

A barrel of US crude oil futures for February closed 0.7 percent lower in New York on Friday at $78.90. However, on a weekly basis, the price of oil closed up about 5.0 percent, mainly due to the major political turmoil in Kazakhstan.

According to market analyst Helima Croft of RBC Capital Markets, the turmoil in the country increases the potential for disruptions to the energy supply. This morning, oil futures were flat in Asian trading.

The macroeconomic calendar is almost empty today. This week, investors are especially looking forward to the December US inflation which will be released on Wednesday.

At the end of the trading week, the major financial companies will begin earnings season on Wall Street. In Beursplein 5, updates for Fastned and Just Eat Takeaway are coming later this week.

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company news

Biocartis has achieved its main goals in 2021. The Belgian diagnostics company announced this in a press release.

Nexua transplanted the first US patient into the DREAM IDE study in December. The company still expects to complete the transplants, which are taking place at 15 US sites, in the first quarter of this year. This was announced by a sleep apnea specialist from Mont-Saint-Guibert.

Celyad Oncology finished 2021 with €30 million in cash and shares the forecast for 2022.

Citi lowered its UCB advice from buy to neutral and its target price from 112.00 to 97.00 euros.

Close positions on Wall Street

The leading S&P 500 index fell 0.4 percent to 4,677.03 points on Friday, the Dow Jones closed flat at 36,231.86 points and the Nasdaq closed 1.0 percent lower at 14,935.90 points.

Pron: ABM Financial News

From Beursplein 5, Editors ABM Financial News Keep a close eye on developments on the stock exchanges, and the Amsterdam Stock Exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.