The AEX index on the Damrak opened Friday morning with a slight rise, though investors stayed cautious amidst ongoing turmoil in the bond markets. This followed a sharp drop in US stock markets on Thursday night, driven by another surge in government bond yields. Interest rates on long-term US government loans had already climbed to their highest point in nearly twenty years earlier in the week, largely spurred by anxieties over the massive US national debt.
To help lower these market interest rates, the US government announced plans on Wednesday to increase its purchases of government bonds. US Treasury Secretary Scott Bessent reinforced this strategy on Thursday, signalling that the bond buyback programme could expand even further. However, the markets remained unimpressed by these measures, as they fail to address the core problem of the underlying debt.
Despite these concerns, Amsterdam’s main index gained 0.4 per cent to reach 1,107.19 points during morning trading, while the MidCap advanced 0.2 per cent to 1,112.45 points. European peers in Frankfurt, London, and Paris also posted modest gains of up to 0.3 per cent. Meanwhile, Asian markets delivered a mixed performance overnight. Tokyo’s Nikkei fell 0.3 per cent as Middle East conflict pushed energy costs and July inflation to the highest levels seen this year. Conversely, Seoul’s Kospi climbed 0.9 per cent, powered by a 4 per cent surge in chipmakers Samsung and SK Hynix.
Semiconductor companies ASMI, Besi, and ASML spearheaded the gains on the AEX with increases of up to 2.4 per cent, alongside steelmaker ArcelorMittal which rose 2.3 per cent. On the losing end, data providers Wolters Kluwer and RELX dropped by more than 1 per cent. In the MidCap, technology firm TKH, stainless steel producer Aperam, and metals group AMG led the risers with 2 per cent gains, while Czech defence outfit CSG fell 1.7 per cent. Among smaller stocks, EV charging manufacturer Alfen fell over 3 per cent after investment bank Jefferies removed it from its buy list and slashed its price target following disappointing financial results.
Over in Milan, shares in Banca Generali and Banco BPM dropped by 3 per cent and 0.2 per cent respectively following news that Banca Monte dei Paschi di Siena wants to acquire both institutions. Monte dei Paschi, recognised as the world’s oldest bank, saw its shares rise 0.9 per cent as it pursues this dual expansion strategy to prevent itself from being swallowed up by its larger Italian competitor, Intesa, which gained 0.5 per cent.
@anp | NEWS BRAINPORT
