Wall Street closed higher yesterday and Asia joined in. The futures point to a slightly higher opening for our main index: +0.2%. The majority of the other European stock markets also appear to be starting higher.
Yesterday may have been an official day off due to Ascension Day, but trading continued stoically on the stock exchange. Not entirely unexpectedly, trading volumes were somewhat lower than normal. Besi was the winner of the day. Almost immediately after the opening of the market, the share started up almost 10%. Ultimately, Besi closed ‘only’ 3.6% higher. But why did Besi rise?
The group announced that it had received an order for no fewer than 26 hybrid bonding systems. Besi also reported that it expects more orders in the second quarter. Previously, there were doubts about whether there would be sufficient demand for Besi’s technology. That concern seems to be a thing of the past for now. Despite a number of funds going ex-dividend, the AEX managed to close 0.5% higher at 904.21 points.
Even today, there are a number of funds that are quoted ex-dividend: Aperam, Arcadis, AMG (AMX) and Wolters Kluwer (AEX). Furthermore, the morning is well filled with British macro figures. This gives investors insight into economic growth (Q1), the trade balance and industrial production – both for March. There is 1 company that opens its books before the market opens: Eurocommercial Properties. We’ll walk past that briefly now.
Eurocommercial Properties figures look favourable
Eurocommercial Properties shows robust performance in Q1 2024, with a 3.6% like-for-like rental growth and a 3.7% increase in retail sales. The continued low vacancy rate and successful merchandising projects underline the company’s effective management strategies.
The dividend policy is also favorable, with a proposed total dividend of €1.70 per share for 2023, of which €0.64 has already been paid and €1.06 is planned for July 2024. The confirmation of the investment forecast between €2.30 and €2.40 per share for the whole of 2024 offers investors stability and growth prospects. An extensive analysis will of course follow later on the website.
Wall Street closes higher
The American stock markets ended higher yesterday and are again closer to their records. For example, it was announced that the number of new applications for unemployment benefits rose much faster than expected last week. The number of new applications for unemployment benefits amounted to 231,000.
This could indicate increasing weakness in the US labor market, which investors could see as good news as it may force the Fed to start cutting rates sooner rather than later. Investors already started the week hopeful about the likelihood of interest rate cuts, following last week’s weak US jobs report.
- S&P 500: +0.5%
- Dow Jones: +0.9%
- Nasdaq: +0.3%
Then some company news: Beyond Meat’s share fell 14.4% after the meat substitute producer’s second-quarter outlook disappointed. Holiday home rental company Airbnb’s outlook was also below market expectations. The stock lost 6.9%. ARM also presented a disappointing outlook and saw its share fall by 2.3%.
The good news comes from the telecom sector. Shares of US Cellular shot up nearly 28% yesterday after the Wall Street Journal reported that peers T-Mobile US and Verizon Communications are both separately in talks to break up US Cellular.
Asia also higher
The Asian stock markets were mostly higher on Friday morning. Investors in Hong Kong responded positively to a report from the Bloomberg news agency.
It stated that the authorities are considering introducing a tax exemption for private individuals on dividends received. This would only apply to shares listed on the Hong Kong stock exchange.
“Don’t sell in May, buy dividend stocks”
“The Fed will reduce interest rates less quickly,” predicts Vincent Juvyns of JP Morgan. One thing seems certain in Europe, namely that the ECB will cut interest rates during the course of the year. JP Morgan is expecting three cuts totaling 75 basis points, which is not a good outlook for cash holdings.
Juvyns recommends investing in dividend stocks. These, including share buyback programs, yield between 3 and 4 percent. “Nice redundancy pay,” Juvyns calls this. And price returns are on top of that, according to the expert.
This will not go unnoticed by at least one of your fellow investors. “Many dividend stocks are preparing for this: the iShares Euro Dividend ETF has already risen 18% in 6 months, without the dividend yet to be paid out,” was stated in the comments below this message.
You can watch the video below.
The state of affairs
- The AEX is expected to open slightly higher.
- European futures point to a mostly higher open.
- Asia also finished in the green.
- The CBOE VIX index (volatility) is trading at 12.69.
- The euro falls to $1.0780.
- The Dutch ten-year interest rate is 2.79%.
- The gold price rises by 0.5% to $2,357 per troy ounce.
- For a barrel of WTI oil you now pay $79.86.
- Bitcoin is trading at $62,858.46.
News
The most important news from ABM Financial News:
- 08:01 AEX probably starts trading day in green
- 07:57 Eurocommercial reiterates outlook for 2024
- 07:20 Hong Kong leads in Asia
- 07:19 Jefferies lowers PostNL and Bpost price target
- 06:59 European stock markets open in green
- 06:49 Stock market agenda: foreign funds
- 06:49 Stock market agenda: macroeconomic
- 06:48 Exhibition agenda: Dutch companies
- May 9 Loss Groupon is declining
- May 9 Wall Street closes higher
- May 9 Stock market update: AEX on Wall Street
- May 9 Oil prices continue to rise
- May 9 Price alert: American telecom companies on the rise due to takeover speculation
- May 9 Wall Street moves higher
- May 9 European stock markets close higher
Agenda May 10, 2024
- 08:00 Eurocommercial Properties Q1 figures
- 08:00 UK economic growth first quarter
- 08:00 UK trade balance March
- 08:00 UK industrial production March
- 09:00 Wolters Kluwer €1.36 ex-dividend
- 09:00 Aperam €0.50 ex-dividend
- 09:00 AMG €0.20 ex-dividend
- 09:00 Arcadis €0.85 ex-dividend
- 4:00 PM US Consumer Confidence (University of Michigan) May
And then this
And again at Boeing. This time literally
“BP Eyes Tesla Supercharger Sites in $1 Billion Expansion”
Nostalgic now
Customers receive credits back – with interest!
Have fun and good luck today
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