KBC price loss pushes Bel20 into the red zone

(EBMFN) The Brussels Stock Exchange closed in the red on Tuesday, awaiting the Federal Reserve’s interest rate decision and new US inflation numbers.

The Bel20 index closed 0.8 percent lower at 3,857.98 points. KBC gave the worst performance in the star index.

The entire European banking sector came under pressure on Tuesday.

Bernard Kippen, chief economist at CBC Bank, noted that Macron’s poker move, which surprised everyone, brought political risks back to the center of financial markets and put France in a very precarious and even dangerous position.

“Macron’s announcement led to a sharp correction in the French stock market, with a sharp decline in bank stocks in particular,” Kebin said.

“But in the bond market in particular the reaction has been stronger, with a general increase in bond yields and a very clear increase in the spread between interest rates and bonds.” [Duitse] Bond and the French Contract.”

Moreover, investors are mainly awaiting the release of US inflation numbers tomorrow and the interest rate decision from the US Federal Reserve tomorrow evening.

In any case, an interest rate cut is not expected before Wednesday. “So all attention is focused on the quarterly update of forecasts on growth, inflation and interest rate policy of individual board members, the so-called ‘dot chart.’ The starting point is that most central bankers expect one or two interest rates,” says chief economist Luc Abin of Van Lanchot Kempen: “The cuts.”

Inflation is expected to reach 3.4 percent year-on-year, in line with April, forecasts analyst Michael Cramer of Mott Capital. Core inflation is expected to reach 3.5 percent. This would be slightly lower than 3.6 percent in April.

EUR/USD fell to 1.0730 and the price of oil became approximately 1% higher.

The risers and the fallers

UCB initially took the lead on Tuesday after positive analyst reports from America. JP Morgan has withdrawn its sell recommendation for UCB and raised its price target from €70 to €150. Citi maintained its buy recommendation with a target price of 161 euros instead of 126 euros.

Shortly after the opening of trading, UCB’s share price reached €137.30, but then the price fell to €131.40, an increase of 1.0 percent.

Solvay shares gained 1.9 percent and Sensco gained 1.0 percent.

Argenex, Ackermans and Van Haren shares rose 0.3 and 0.1 percent. Kepler Cheuvreux remains the buyer for Ackermans and increased its price target from €178 to €197.

Umicore had to give up another 2.0% and KBC fell 3.4%. Bank stocks also struggled elsewhere in Europe.

Bartel Puelinckx has been elected as the new CFO of KBC Group.

Real estate also had a tough time. WDP shares fell 2.7 percent and Cofinimmo fell 3.4 percent.

As the numbers came out this evening after hours, Colruyt’s stock gains reached 1.5 percent. Analysts believe Colruyt has met its own expectations.

Deutsche Bank starts following Azelis with a Hold recommendation and a target price of €20.40. However, Azelis stock was 3.1% in the red.

Care Property lost 4.2 percent and Shurgard even 4.6 percent.

Agfa-Gefert shares lost 2.9 percent, despite the new contract with Alliance Medical. The financial details of the contract were not disclosed, but Agfa described the contract as “important.”

The CFE small-cap index rose 1.9%. Nexwah became 3.6 percent cheaper.

Source: ABM Financial News

ABM Financial News is a resource for stock market news, video and data, both for real-time trading platforms and trading rooms and for online and offline media publications. The information in this article is not intended to provide professional investment advice or a recommendation to make particular investments.