It looks like it will be a red Monday, with the AEX opening around 928 points. This is slightly lower than Friday's closing price of 930 points. Asian stock markets and US futures are also in the red, which sets the tone for this week.
It is certainly understandable that the stock market is taking a step back this week. Looking at the returns since the beginning of April, it is no surprise. Almost all financial assets have skyrocketed since then.
Bitcoin is leading the dance with a spectacular increase of more than 33%, while the AEX is also not to be neglected with a return of 18%. However, this also raises the question whether investors will decide to cash in part of their realized profits by selling. It is therefore not surprising that the market is currently running into some strong resistance. It seems as if investors are also aware of the lack of a real catalyst for a new bull market.
The trade agreement between China and the United States is also provisional. We are talking about a period of 90 days; a final agreement has yet to be reached.
The current recovery movement of the AEX is very reminiscent of the situation during the Covid-19 pandemic. In March 2020, the stock market index plummeted dramatically, and we saw a similar decline in April due to the trade war of Donald Trump. The AEX has now made up for a large part of those earlier losses. If the 2020 scenario repeats itself, good things could be in store for the stock market index.
Still, it is too early to cheer, because a real breakthrough from the current situation is not yet in sight. The AEX still has to make a move here. What do you think, will the AEX soon reach new record heights?
What is the current AEX level?
The AEX opens this Monday at around 928 points, slightly lower than the previous closing price of 930 points.
Why is there now a brake on the stock market?
After the strong gains since early April, investors may be looking to take profits, creating headwinds for the market.
What can help the AEX to rise again?
A definitive trade deal between China and the US could boost the market, but for the time being the AEX continues to face resistance.