The AEX index suffered headwind throughout the day and ended 0.8% lower at 558.46 points. The AMX thickness is still 0.1% at 787.4 points. The price signs in Paris (-1%) and Frankfurt (-0.8%) were still red.
In the afternoon, investors were still presented with a boost from the American labor market with an unexpected sharp decrease in the number of new and continued unemployment benefit applications. Corné van Zeijl, an analyst at Actiam, emphasizes that the figures were surprisingly good after claims for benefits had risen again in recent weeks. He points out that the number of contamination cases is also decreasing in many major US cities. “Yet there is still a risk that consumers will lose their hands if a new support package from the US government does not come.” Democrats and Republicans are still negotiating the launch of new corona support this week. “In an election year, it is expected that both parties will come out.”
Furthermore, many investors looked the cat out of the tree pending the US jobs report to be released tomorrow afternoon. It is estimated that 1.5 million new jobs were created in July and unemployment fell to 10.8% of the labor force.
Van Zeijl is holding on to the arm or the AEX to continue its way up after the strong revival this week. “As of June we are already in a bandwidth between 550 and 570 points. The earnings season in particular, which is predominantly less dramatic than was feared, has provided support to the market. On the other hand, the robust economic recovery has leveled off again in April and May. ”
Bank of England
The Bank of England reported today that the UK economy will take longer to recover from the corona crisis than previously thought. However, the UK central bank does not want the key interest rate to drop below 0% in the near future. The interest rate will remain at 0.1% for the time being.
“The Bank of England has informed the markets that negative interest rates should not be expected in the coming months, partly because the central bank is concerned with what such a move could mean for commercial banks. The Fed has said more or less the same thing, ”said Rabobank economist Koopman. “This leaves the ECB and the Bank of Japan somewhat alone with their policy of negative interest rates. The view of central bankers on negative interest rates is currently somewhat less positive than in recent years. ”
ING leading role, Unibail last but not least
Made in the AEX ING a price jump of 5.6%. Due to the corona crisis, the bank set aside more than € 1.3 billion in the second quarter for loans that may never be repaid. Partly because of this, net profit has plummeted by more than 79% to € 299 million. The recently appointed CEO Steven van Rijswijk emphasizes that despite the circumstances, the bank saw interest income decline only slightly. According to van Zeijl, bottom fishermen in particular seem to have entered the bank’s share. ABN traded 1.4% higher in ING’s slipstream.
NN was worth 1.5% more. The insurer increased its operating profit in the first half of the year thanks to further cost savings. The company behind Nationale-Nederlanden, just like competitor ASR, will reward its shareholders with an interim dividend and the purchase of its own shares.
Real estate fund Unibail received a 3.9% blow. The stock market weights ASML (-1.5%) and Shell (-1.7%) were also at a loss.
Broadcaster Randstad left 1.1%. Industry colleague Adecco was hit hard by the corona crisis in the second quarter. Demand for temporary workers faltered worldwide, which had a significant impact on the company’s financial performance. Adecco emphasized in an explanation that it has seen a “gradual improvement” in its markets in June and July.
Fagron and SBM popular
In the AMX shot Fagron 3.7% up. The pharmacy supplier saw sales and profit grow strongly in the first six months of the year. The virus outbreak led to increased demand for the disease-related products from the company. But there was also a lower demand for plannable care, which affected the Compounding Services division, where pharmaceuticals are custom-made from compounding pharmacies.
SBM Offshore could add 3%. The maritime oil service provider has increased its full-year profit forecast. Despite the weak market conditions in the oil and gas industry due to the sharply lower oil price and the impact of the corona crisis, the company managed to reduce its costs through improved operational performance.
GrandVision (-0.6%) this week had a visit from bailiffs who came to secure information on the servers of the parent company of the optical chains Pearle and Eye Wish on behalf of the intended buyer EssilorLuxottica. This step is part of the lawsuit that EssilorLuxottica has filed, because GrandVision would provide too little information about how the company is getting through the corona crisis. GrandVision disagrees.
Huge damage Hunter Douglas and Ctac
Fell on the local market Hunter Douglas 4.3% back. The window dresser expects a lower turnover this year due to the corona crisis. This was evident from a trading report for the first half of the year, in which the company was hit hard by the corona crisis. Revenue during the measurement period was nearly $ 1.5 billion, down 18% from the first half last year. Bottom line was a profit of $ 28.5 million, up from more than $ 125 million a year earlier. Hunter Douglas did go into the red in the second quarter. The company recorded a loss of $ 10.1 million for the period. The company is restructuring its activities due to the expected lower turnover.
Automate Ctac (-7,2%) managed to increase sales in the first six months. The company owed this in full to the takeover of a consultancy. Without this incorporation, revenues would have declined slightly due to the impact of the corona crisis on customers. In the first six months of the year, sales increased by 2.7% to € 42.5 million. Ctac recorded a net profit of € 600,000 in the first half of the year. The company broke even a year earlier. Ctac started cleaning up its product offering this year. It will continue in the second half of the year. In it, the company also expects the turnover levels at customers in the Netherlands and Belgium to continue to pick up.
At pottery manufacturer Porceleyne Fles major shareholder John Fentener van Vlissingen leaves as supervisory director. He gives up his place on the supervisory board to his grandson Jean-Paul Honegger. Fentener van Vlissingen saved the manufacturer of Delft blue from destruction in 2003. The Porceleyne Fles share was unchanged.