The Amsterdam AEX index opened lower on Monday, extending losses from Friday’s sharp decline. Investor attention remains focused on developments around the war in the Middle East.
On Saturday, US President Donald Trump gave Iran a 48-hour ultimatum to fully reopen the Strait of Hormuz to shipping. If Tehran fails to comply, the United States will attack Iranian power stations, Trump said. He threatened the complete destruction of energy facilities if the ultimatum is ignored. Iran responded by saying it would retaliate with further attacks on energy facilities in the Gulf region.
The price of a barrel of US crude oil rose 3.3 per cent to $101.37. Brent crude, the benchmark for oil from the Middle East and Europe, climbed 1.5 per cent to $113.85 per barrel. European gas prices increased by 4%.
In early trading, the AEX was down 1.2 per cent at 949.86 points. On Friday, the index had already closed 1.6 per cent lower.
The MidCap index fell 2.3 per cent to 924.28 points, following a 1.9 per cent loss on Friday. Stock markets in Frankfurt, Paris and London declined by as much as 1.8 per cent. Before the weekend, losses of up to 2 per cent had already been recorded.
Within the AEX, steelmaker ArcelorMittal was the biggest loser, down 3.3 per cent. ING fell 3 per cent after US investment bank Morgan Stanley cut its investment rating. ABN AMRO also moved lower, losing 2.8 per cent.
Unilever, information providers RELX and Wolters Kluwer, and parcel locker operator InPost were the only gainers in the main index, with rises of up to 0.3 per cent.
In the MidCap airline group, Air France-KLM dropped more than 4 per cent, pressured by higher oil prices. British Airways owner IAG fell more than 3 per cent in London, while Germany’s Lufthansa declined 3.3 per cent in Frankfurt.
Trading firm Flow Traders was the top performer among mid-sized stocks in Amsterdam, rising 1.7 per cent. The company tends to benefit from increased volatility in financial markets.
@anp | NEWS BRAINPORT
