US inflation figures push European stock markets down

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The stock exchange in Amsterdam entered the weekend with a substantial loss, with almost all companies in the AEX index closing lower than the day before. Investor sentiment clearly deteriorated after new data on inflation in the United States were released. These suggest that interest rates there will continue to rise, which is detrimental to equities. Large losses were also suffered on other stock exchanges in Europe.

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The US Federal Reserve’s preferred measure of inflation came in higher than expected on Friday. As a result, many investors assume that the US central bank umbrella will continue to raise interest rates for a long time.

The stock exchange in Amsterdam entered the weekend with a substantial loss, with almost all companies in the AEX index closing lower than the day before.
The stock exchange in Amsterdam entered the weekend with a substantial loss, with almost all companies in the AEX index closing lower than the day before. (ANP / Berlinda van Dam)

AEX

The AEX index closed 1.2 percent lower at 746.41 points, with only oil and gas group Shell and data supplier Wolters Kluwer able to book a minimal profit. The biggest losers were the tech companies Besi (down 5.5 percent) and Adyen (down 4.5 percent), which are suppliers to the chip sector and payment service provider respectively.

Chemical distributor IMCD lost 2.5 percent in market value. The company posted record results last year, but its performance in the final quarter was less than expected. According to ING analysts, this is probably because customers first used up their excess stocks of raw materials.

Mid cap

The MidKap fell 0.8 percent to 1005.38 points. Aalberts showed recovery with a profit of almost 2 percent. The industrial group lost about 5 percent a day earlier after the publication of the annual figures.

The stock exchanges in Frankfurt and Paris fell to 1.8 percent. London lost 0.3 percent.

Dismissed

Swedish telecom company Ericsson announced it would cut 8,500 jobs after a year in which profits fell by 17 percent. The stock fell 1.3 percent. Chemical group BASF is also going to cut hundreds of jobs to save costs. The German company is suffering from high gas prices. The stock closed nearly 8 percent lower.

The French building materials group Saint-Gobain rose almost 5 percent in Paris after a record turnover in 2022. In London, IAG lost more than 6 percent. The parent group of British Airways, Aer Lingus, Iberia and Vueling made a profit again last year thanks to the strong recovery from the corona crisis. IAG also takes over the Spanish airline Air Europa.

Euro dollar

The euro was worth 1.0548 dollars, compared to 1.0592 the day before. A barrel of US oil cost 0.8 percent more at $ 75.99 per barrel. Brent oil became 0.8 percent more expensive, at USD 82.82 per barrel.


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