The AEX index ended 0.9% in the plus at 563.05. In the meantime, a highest daily level of 566.30 points was set. The AMX rose 1.6% to 786.35 points.
Elsewhere in Europe, the signs also turned green. Paris and Frankfurt increased 0.9% and 0.5% respectively.
In the afternoon, a disappointing figure on employment in the US corporate sector was released. The number of new jobs measured by salary processor ADP was significantly lower in the past month than economists had anticipated. According to Stefan Koopman, an economist at Rabobank, it is increasingly visible in the economic figures that the resilience of the American economy is weakening. He points out that this has opened the door further for Republicans and Democrats to come up with a new stimulus package. “It is vital to maintain the purchasing power of consumers in the US to avoid further deterioration in third-quarter macro data.”
In the morning, the services sector of several European countries cleared up in July after the strong dip in April and the first stabilization in May and June. Koopman indicates that tax incentives in Europe will continue to be necessary in order to limit corona damage for this year as much as possible.
Rein Schutte, investment advisor at Noesis Capital Management, emphasizes that investors have been supported by mainly better than expected operating results and the recovery in the European services sector. “A week earlier, there were still fears of an economic cooling, but this week investors have shaken off concerns.”
Schutte takes into account that the AEX will hardly move on balance this month. “I see little reason why the prices will rise sharply unless there is a corona vaccine in the short term. On the other hand, there is not expected to be a major drop in anticipation of the planned new US government support package. ”
Ahold Delhaize excels
In the AEX fell Ahold Delhaize good taste with a 5.3% price jump after the highest level ever was hit above € 26 earlier in the day. The supermarket group doubled its second-quarter profit and boosted its profit forecast for the year. The parent company of Albert Heijn and bol.com once again benefited from consumer hoarding due to the coronavirus outbreak, as in the first quarter. CEO Frans Muller also stated that Ahold has not made an offer for industry colleague Hema. The increase in the dividend gave the stock extra support, Schutte says.
Wolters Kluwer was also in demand and gained 3.3% more. The information provider achieved revenue growth in the first six months of the year to € 2.3 billion. Organic revenue growth amounted to 3% in the reporting period. Wolters Kluwer did not forecast the rest of this year. Steel manufacturer ArcelorMittal took the lead with a final sprint and advanced 5.6%.
ASR gained 4.3% after the insurer’s report resume its dividend distribution and share buyback program. Both were previously temporarily suspended due to the corona crisis, but after an announcement by De Nederlandsche Bank (DNB), it is possible for the listed company to distribute money to the shareholders again. ASR will pay € 1.20 per share as a special dividend, which is equal to the suspended final dividend of 2019.
Shell rose 1% helped by a strong upturn in oil prices, which rose to the highest level in five months after an unexpected drop in US oil stocks.
The number of losers was well outnumbered. Telecom group KPN fell 1.8%. ASML also had a lesser day with a 0.9% drop. Heineken 1.2% slipped.
Fertilizer manufacturer stole in the AMX OCI the show with a price jump of 8.1%. The company benefited from good quarterly figures of the American industry colleague Mosaic. Air France KLM skyrocketed 6.8%. The aviation group was also on Tuesday 5% in recovery. PostNL sprinted 4.3% ahead of the rally with Belgian peer Bpost.
Arcadis (-0.5%) announced that it had sold its shares in the Brazilian sustainable gas collaboration project ALEN to its local partner Porto de Cima Concessões. In December last year, the consultancy and engineering firm already announced that it would stop investing in the project, because the results were disappointing. Arcadis then made a provision of € 85 million. Now the company repays € 6 million in debt and releases part of the provisions. “I am very happy with the agreement,” says Arcadis CEO Peter Oosterveer. “With the closing of the transaction today, we can finally put this old issue behind us.”
GrandVision headed 0.6% in the min. The owner of optical chains such as Pearle and Eye Wish, plunged into the red during the first half of the year. Due to the corona outbreak, many stores were temporarily closed, which put a lot on sales. However, according to the company, there has been a solid recovery since the reopening of the branches in various countries. GrandVision still emphasized its support for the deal with EssilorLuxottica despite the legal battle with the eyewear giant.