Bel20 shrugs off US sales wave | beursduivel.be

(ABM FN) The Brussels Stock Exchange managed to close in the green on Wednesday, despite a sell-off that hit U.S. technology funds in particular. The Bel20 index gained 0.3 percent to 4,017.59 points.

Remarkably, the Belgian stock market is doing very well today. The Dutch AEX is currently at least 1.8% in the red, while in the US the Nasdaq and S&P 500 are down sharply. “Following last week’s weaker-than-expected US inflation data, investors around the world are increasingly confident that the Fed will soon embark on a real long-term easing cycle,” can be heard in the KBC market room, giving markets a boost.

However, today there is not much of this positivity left and it seems that this is due to President Biden. For example, many chip manufacturers around the world are under pressure because the United States has told its allies that it wants to implement serious trade restrictions if companies like ASML and Tokyo Electron continue to give China access to the most advanced technology.

This also explains why Belgium is somewhat exempt from today’s sell-off. Dutch indices are filled with technology and chip stocks, so the Bel20 area, which is mainly filled with banks and real estate, has little to fear from potential sanctions.

On the macroeconomic front, the situation has been fairly calm. Fed Governor Christopher Waller believes the central bank is “approaching the point where cutting” interest rates is warranted, but he still wants more evidence that inflation is slowing before he is ready to act.

“I think the current data is consistent with a soft landing, and I will be looking for data to support that view in the coming months,” Waller said. “While we are not there yet, I think we are getting closer to the point where a rate cut is warranted.”

In addition, it was announced that the number of mortgage applications in the United States rose by 3.9 percent last week. The market index rose from 206.1 to 214.1.

Building permits issued in the United States rose 3.4% to 1.446 million in June, while residential construction rose 3.0% to 1.353 million.

U.S. industrial production rose at a slower pace in June than the previous month. In June, output grew by 0.6%, after a 0.9% increase in May.

U.S. crude oil inventories unexpectedly fell last week, after being expected to stabilize after sharp declines in previous weeks. In the week ending July 12, crude oil inventories fell by 4.9 million barrels to 440.2 million barrels. Analysts had expected the level to remain unchanged at 445.1 million barrels. The price of a barrel of West Texas Intermediate crude rose by 3.4 percent.

Interest rates remained close to home and the EUR/USD rose to 1.0931.

Risers and Fallers

On the main index, Solvay was the top gainer, up 4.6 percent, followed by Sensco, up 3.0 percent. Ageas lost 0.4 percent. Its industrial rival Score fell sharply in Paris on Tuesday after a profit warning.

Argenx and D’Ieteren also lost more than 1 percent.

Jefferies raised its price target on UCB from €162 to €167 while maintaining a buy recommendation. UCB shares fell 0.8 percent.

Barco delivered disappointing margins in the first half of the year, said analyst Chris Capers of DeGrove Petercam. The company this morning cut its full-year 2024 margin forecast. It now expects a margin of 11 to 13 percent, compared with a previous forecast of 14 percent. The stock initially fell 5 percent but eventually rose about 10 percent. Investors reacted with relief despite the lowered forecasts, KBC analyst Tom Simons told ABM Financial News. The price rise also coincides with a broader move by investors to stockpile small- and mid-cap stocks. “It seems like the bad news was already priced in.”

ING lowered the target price on Orange Belgium from €30.00 to €22.00 while maintaining a Buy recommendation. Orange Belgium managed to maintain a small profit.

Among smaller stocks, WHATS Cooking gained about 4 percent, while Onward Medical lost 2.7 percent.

Wall Street Ratings

At the close of trading in Brussels, the S&P 500 lost about 1.2 percent and the Nasdaq lost 2.6 percent.

Source: ABM Financial News

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