President Trump fuels trade concerns for investors. He might want to lift a trade deal with China over the 2020 US presidential election, he said on Tuesday. American and Asian markets already reacted pretty negatively.
The Amsterdam stock exchange starts on Wednesday with a slight profit. The AEX climbs 0.3 percent to 585.24 points. The German DAX wins 0.2 percent. The British FTSE loses 0.1 percent shortly after opening.
- The gaze remains focused on developments on the trade front after President Donald Trump stated that he might postpone a trade deal with China until after the US presidential election in 2020.
- At the Damrak, the AkzoNobel share may move on a recommendation change. Morgan Stanley analysts increased their recommendation for the paint company.
- Supermarket group Ahold Delhaize announced in 2020 that it will buy back its own shares for 1 billion euros.
- Trump said on Tuesday that Beijing is eager to sign a trade agreement but that “in certain respects it is better” to conclude a deal only after the elections. Trade MinisterWilbur Ross said that new import taxes against China have become more likely this month. On December 15, the White House decides whether taxes on $ 160 billion worth of goods from the Asian country will take effect.
- Air France scraps Thursday 30 percent of domestic flights and 15 percent of medium flights due to a strike by air traffic controllers in France. Flights on long routes are expected to go according to schedule. The airline warns that there may also be disruptions to flights on Friday and Saturday.
- The Asian stock markets took a step back on Wednesday due to fears of a long-term trade dispute between the United States and China. The Nikkei in Tokyo closed 1.1percent lower. The Hang Seng index in Hong Kong dropped 1 percent in the meantime. The stock market in Shanghai fell 0.3 percent despite stronger than expected growth in the Chinese services sector in November.
- Most European stock exchanges lost ground again on Tuesday. The AEX index finished 0.7 percent in the minus at 582.93 points and the MidKap fell 0.7 percent to 867.39 points. Paris and London lost up to 1.8 percent. Frankfurt was a positive exception with a plus of 0.2 percent.
- Wall Street also went down. The Dow-Jones index closed 1 percent lower at 27,502.81 points. The broad S&P 500 fell 0.7 percent and the Nasdaq tech fair lost 0.6 percent.
- Especially American Companies that are sensitive to the trading troubles were lowered. Machine builder Caterpillar fell 2.2 percent in the red. In the chip sector, Advanced Micro Devices (AMD), Micron Technology and Nvidia lost up to 2.3 percent. Apple had to swallow a 2.2 percent loss. Goldman Sachs investment bank also had a difficult day with a minus of 3 percent.
- Investors are deeply concerned about the performance of Lumileds, the former Philips subsidiary that is 80 percent owned by private equity.
- The euro was worth $ 1.1075 against $ 1.1087 a day earlier. The price of a barrel of American oil rose 0.7 percent to $ 56.47. Brent oil cost 0.7 percent more at $ 61.26 a barrel.