At around 10:15 AM, the AEX index was 4.2% higher at 481.3 points. The stock market indicator already rose by 9% on Tuesday and thus had the best day in almost 12 years. By the way, the AEX topped its low this year at 389.60 points. Before the corona crisis broke out, the index reached a year-high last month at 632.12 points.
The AMX climbed 5.5% this morning to 671.6 points. The stock markets in London (+ 3.7%), Paris (+ 3.6%) and Frankfurt (+ 3.5%) were also sunny.
“Do not underestimate economic impact of corona”
“Investors today realize that stock markets sometimes go up very fast,” says wealth strategist Simon Wiersma (ING). But he warns that stock markets may not have seen the trough yet. “There are now some positive developments, but we should not underestimate the economic impact of the corona virus.”
According to Wiersma, the US $ 2000 billion aid package may seem huge, but may require more capital. It can also take weeks or even months to get the money from companies and citizens in the US. The ING strategist also points out that the coronavirus is not yet under control in Europe and North America. Investors should therefore take into account that there is currently a bear market rally as we saw it during the financial crisis in 2008, Wiersma said.
US agreement on $ 2000 billion aid package
The US government reached an agreement with the Senate last night on a $ 2000 billion aid package to deal with the economic consequences of the corona pandemic. The deal was reached after hours of negotiations between Senate Democrat leader Chuck Schumer and Secretary of State Steven Mnuchin (Finance).
An advance was already paid on Wall Street on Tuesday evening. The Dow Jones index rose 11.3%, marking the best trading day since 1933. The American stock markets are expected to open 2% to 3% higher this afternoon. In Japan, the Nikkei index was up 8% this morning.
German economy in shock
German entrepreneurs’ confidence in the economy has plummeted even more than previously assumed, under pressure from the corona crisis in March. Ifo’s confidence index reached a final level of 86.1 against 96 in February. A preliminary estimate last week reported a level of 87.7. It is the strongest decline since 1990, when German reunification took place. The indicator is now at its lowest level since 2009.
Ifo President Clemens Fuest said that the German economy, the largest in Europe, is “shocked” by the crisis. According to him, German entrepreneurs have never been so gloomy about the future. To tackle the crisis, Berlin is mobilizing € 750 billion in emergency support for companies.
There was a biotechnology group in the AEX Galapagos the star with a price jump of 13.5%. ASMI traded 9.6% higher. The chip machine manufacturer made its debut with the main funds this week and also made a jump of 13% on Tuesday.
Steel producer ArcelorMittal (+ 8.1%) and information supplier Relx (+ 8.1%) were also firmly on the rise. Fair weight Royal Dutch Shell increased by 7.3%.
In the AMX was gym chain Basic-Fit (+ 21.7%) the largest climber. Altice Europe improved 12.5%. The cable and telecom group said it expects a further increase in operating profit and revenues throughout 2020, despite the corona crisis. The quotes from biotechnology company Pharming (+ 12,%) and soil researcher Fugro (+ 12.2%) also picked up considerably.
Trust office Intertrust (-4.1%) was the largest fall in medium-sized funds. Tank storage group Vopak declined by 1.8%.
Small cap fund Avantium (+ 11.1%) came with annual figures. The specialty chemicals group increased sales last year, while reducing losses.
NIBC reported that investor Blackstone is sticking to the takeover bid for the bank from The Hague. Due to the corona crisis, investors had doubts about this last week, which caused the price of NIBC to plunge temporarily. The NIBC share rose as much as 26.8% this morning.
The locally noted automation company Ctac (+ 9.7%) announced that it would change its dividend proposal due to the corona crisis. Instead of a cash dividend of EUR 0.08 per share, a stock dividend of EUR 0.08 per share is now being proposed. The shareholders’ meeting of May 13 was also postponed.
Biotechnology company Curetis went down 9.2%. The merger between Curetis and the American OpGen is expected to close in early April. Although the German specialist in diagnosis systems is the acquiring party, the merger is legally designed as an acquisition of Curetis with a stock exchange listing in Amsterdam by OpGen. It was also reported that Curetis shipped the first coronavirus detection kits in Europe this week.
Would you like to receive the DFT Newsletter automatically every morning by email? Then you can register here for free.