The AEX index was 2% higher at 568.3 points around a quarter past twelve. The AMX rose 1.9% to 813.4 points.
There was also a cheerful mood at the other European stock exchanges. The British FTSE 100, the German DAX and the French CAC 40 won 1.9%, 2.3% and 2.2% respectively.
Investors draw hope from US President Donald Trump’s announcement that prominent Democrats Nancy Pelosi and Chuck Schumer want to meet him to negotiate a deal on a new economic bailout package. Previously, the Republicans and Democrats could not agree on this.
Stan Westerterp, asset manager at Bond Capital Management, emphasizes that support from central bankers and governments is music to investors’ ears. “With the Democrats reaching out to the Republicans, it is obvious that a deal on new corona support is coming up.” He does point out, however, that the Democrats face a difficult dilemma to help Trump restore the US economy just before the presidential election. According to him, the predominantly strong earnings season still contributes to the good mood. “With the exception of certain sectors, many companies have survived the corona crisis better than expected.”
An unexpected strong increase in confidence among German investors in the near future also supported the buoyant sentiment. Economists had foreseen a decline.
Westerterp takes into account that towards the end of the year the AEX will be able to reach the limit of 600 points again. “The coming months will mainly be dominated by the American elections that will take place at the beginning of November. With this uncertainty behind us and the increased clarity about a corona vaccine, enthusiasm for the remaining big boys, such as ING and Shell, will increase again. Tech funds are likely to lose momentum due to sector rotation. ”
With the Dutch main funds withinvestors mainly buy bread Unibail-Rodamco-Westfield with a price jump of 8.5% as a result. The retail real estate group is the worst performing AEX fund this year with a loss of almost two thirds.
Financial institutions, which have also lagged far behind, were also on the rise. ABN Amro, Aegon in ING climbed 4.2%, 4.6% and 4.8% respectively.
Shell was also well under way, rising 4.1%, helped by the continued rise in oil prices. Arcelor Mittal sprinted 4.1% forward.
Prosus was 2.1% in recovery, partly thanks to a buy advice from Deutsche Bank. The investor has been down in the past few days as Trump banned US transactions with WeChat. This is owned by Prosus’ by far the most important subsidiary Tencent.
Soil researcher excelled at the medium-sized funds Fugro with a gain of 5.1%, after being taken off the sales list by ABN Amro. OCI
Pharming took 0.2%. On Monday, the biopharmaceutical shot up 9% as it began researching its drug’s effectiveness in a larger group of corona patients.
Technology company TKH lost 2.5%, after the presentation of its half-year results. The forecast for the entire year was disappointing.
Smallcap Vastned climbed 5%, after a hefty price target increase to € 24 by Berenberg. The German bank uses holding advice for the real estate fund. Industry colleague Wereldhave rose 4.1%.
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