NOS News•today, 6:43 PM
The AEX, the most important indicator of the Amsterdam stock exchange, closed today at 900.06 points. It is the first time that the AEX has passed the 900 point mark. Since the end of October, when the AEX was just above 700 points, stock prices have been on the rise.
Investors have therefore been positive in recent months about the chances of companies to make good money. In recent weeks, investors expect that the time for interest rate increases by central banks is over and that interest rate cuts are on the horizon later this year.
High interest rates dampen economic growth because it becomes more expensive for companies and consumers to borrow money. Interest rate cuts stimulate the economy precisely because borrowing becomes cheaper. Central banks had raised interest rates to cool overheated economies and thus curb inflation. Now that inflation in Europe and the US is no longer so high, interest rates may be able to drop again.
The AEX index is based on the price of the 25 largest and most traded shares on the stock exchange. The most important share belongs to chip machine manufacturer ASML, the Dutch company with the highest stock market value. Shell, Unilever and Heineken, among others, are also included in the AEX index.
