(ABM FN) The Brussels stock exchange is expected to start higher on Monday. Futures on the Euro Stoxx 50 index indicated a gain of 0.6 percent an hour before the gong.
Last week, Brussels was even fractionally higher on a weekly basis to 3,340.10 points.
This weekend, US President Donald Trump signed four decrees through an executive order to provide relief for the economic victims of the corona pandemic.
Among other things, unemployment benefits are being extended, but with a lower amount than in recent months, and tax collection is being postponed. Trump took action after the US Congress failed to agree on a new bailout package.
Analysts did point out that the measures are funded at the federal level and that Congress has the final say on this. Democratic presidential candidate Joe Biden spoke in response to half-baked measures, while Trump himself stressed that the measures will support American workers and save many jobs.
On Friday, investors were given a boost after a positively received jobs report from the United States. Almost 1.8 million jobs were added, better than expected, while unemployment fell more than expected.
“It is clear that the US labor market is recovering,” concluded CMC Markets analyst David Madden. However, Rabobank analysts also pointed to temporary seasonal effects, which distorted the figures and that the recovery is slow.
In the background, tensions between the United States and China also played a role last week. US President Trump signed a presidential decree on Thursday to ban the Chinese social media apps TikTok and WeChat in America from the middle of next month.
In addition, sanctions have been imposed on Chinese executives responsible for curtailing Hong Kong’s relative autonomy, and the Trump administration is considering depriving Chinese companies of their Wall Street listing for failing to comply with US accounting rules.
“The big question for investors is whether these moves jeopardize the US-China trade talks that start on August 15,” noted National Australia Bank analyst Tapas Strickland. “The markets will be sensitive to any Chinese retaliation.” , he added.
On Wall Street, the main indicator S&P 500 closed on Friday evening thanks to a final sprint 0.1 percent higher. The American oil price also fell by 1.7 percent to $ 41.22. The euro / dollar currency pair was trading at 1.1794 this morning.
In Asia, where the Japanese stock exchange closed its doors today, the Chinese stock markets stayed close to home this morning. The Australian and South Korean stock markets were able to find their way up with gains of about 1.5 percent.
The earnings season has passed its peak. Later this week, in Brussels, eyes will still be on Jensen-Group, Sipef and Lotus Bakeries.
Today’s macroeconomic agenda is sparse.
Berenberg raised ING’s target price from 8.00 euros to 8.40 euros, while Jefferies increased the price target from 8.80 to 9.00 euros. Both investment banks use a purchase advice for ING.
Closing positions Wall Street
The S&P 500 closed 0.1 percent in the plus at 3,351.28 points on Friday evening and the Dow Jones index gained 0.2 percent at 27,433.48 points. The Nasdaq ended 0.9 percent lower to a close of 11,010.98 points.
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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