(ABM FN-Dow Jones) The Amsterdam stock exchange ended lower on Thursday, after disappointing macroeconomic data from the US.
The AEX ultimately closed 0.4 percent lower at 870.27 points.
Although the day started cautiously, the financial markets received a cold shower at half past two, after the growth of the American economy in the first quarter was much lower than expected at 1.6 percent. In the fourth quarter the economy grew by 3.4 percent.
What was particularly striking in the report, however, was that consumer prices rose by 3.4 percent in the first quarter. That was well above the 1.8 percent increase in the previous quarter. And core prices increased by 3.7 percent. That was 2.0 percent in the last quarter of 2023.
“This means that core PCE inflation for March will also be higher than expected tomorrow,” Rabobank market analyst Philip Marey told ABM Financial News. The weak growth figure indicates that momentum in the economy is weakening more than expected. “But that is apparently for the later care markets,” Marey said.
According to CME’s FedWatch Tool, the market is only now cautiously considering a rate cut for the first time in July, but the chances are shrinking. The Fed may cut rates twice this year, but the likelihood of just one cut seems greatest.
What also did not help was the share price of Meta, which fell by 12.9 percent after Wednesday evening’s figures. After the fair, Alphabet and Microsoft are on the agenda, among others.
Oil prices fell slightly as concerns about a possible downturn in the US economy rise. This outweighs the fear of new conflicts in the Middle East. The price for a barrel of Brent oil fell 0.4 percent to $87.70.
Interest rates continued to rise. In Germany, the ten-year government bond traded 5 basis points higher at 2.63 percent. In the US, the ten-year interest rate rose to 4.71 percent and the two-year interest rate even briefly exceeded 5 percent.
The euro/dollar remained relatively calm and rose slightly to 1.0716.
Risers and fallers
Among the main stocks, the quarterly figures of heavyweight Unilever received a positive reception. The stock closed 5.9 percent higher after reporting better-than-expected underlying growth. Jefferies spoke of good figures.
On the other hand, the thumbs went down considerably for Adyen, after a disappointing turnover according to Jefferies. The reason behind this, according to Degroof Petercam, is that Adyen is mainly growing among its largest customers, where the take rate is lower. The share closed as much as 18.4 percent lower.
Akzo Nobel also lost ground and had to give up 0.7 percent after a price target reduction by ING.
Besi also initially took a heavy beating, falling more than 8 percent in the morning after reporting weak order inflows in the past quarter. Based on the outlook for the second quarter, Degroof thinks that analysts will significantly reduce their profit estimates. The share ultimately managed to limit the loss somewhat and closed 2.2 percent lower.
In the AMX, Flow Traders took the lead after figures with a gain of 2.3 percent. The company benefited from crypto trading last quarter. Fugro also gained 2.1 percent after figures. KBC Securities and Degroof Petercam increased their price target for the soil researcher.
WDP was 4.9 percent lower after an ex-dividend listing and Alfen also had a difficult day and lost 4.4 percent
In the AScX, Renewi gained 4.7 percent. Renewi emphasized before the opening that the annual figures will be in line with the lowered expectations at the beginning of this year and in line with market expectations. B&S Group won 2.9 percent.
CM.com lost 3.7 percent and the red lantern was for Vivoryon with a loss of 8.4 percent.
Wall Street rankings
Around the close of the Amsterdam stock exchange, the stock exchanges on Wall Street were in the red. The leading S&P 500 lost 1.2 percent, the Nasdaq 1.6 percent and the Dow Jones lost 1.5 percent.
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