The AEX price seems to be heralding a lower opening for today, with an indication of 925 points. This does not indicate a dramatic drop, given that the stock market closed yesterday at 927 points. In Asia we see a mixed picture with declines, while the futures for Europe also show a loss, and the United States seems to be heading for a flat opening.
After the price violence of the past few days, a calmer stock market day seems to be on the horizon today. Whether that will really be the case, remains the question. Donald Trump announced just 12 hours ago that the US stock market will rise much further. Until recently he persisted in his 'Main Street over Wall Street' policy, but that seems to be slowly but surely coming under pressure.
Bitcoin remains the absolute king of the market, with a 32% increase since the bottom in early April. US stocks are also performing strongly; the Nasdaq rose 26,45% and the S&P 500 18,26%. Our own AEX has also not been sitting idle, rising 17,63%, while gold is lagging somewhat, rising 6,11%. This may be related to the increasing "risk-on" sentiment that is starting to spread.
There is no denying that there has been a ‘risk-on’ movement in the financial markets in recent weeks. Investors are willing to take risks again, especially as the trade war seems to be de-escalating. The situation has been very different in recent weeks, but there is hope that we are slowly but surely moving towards a better market. However, we should not celebrate too soon; there is still a lot to do before we can consider the risk as definitive.
The current deal between China and the US has a term of 90 days. The tariffs that have been imposed have been temporarily paused, but there is no definitive agreement yet. The road to stability is therefore still long.
What impact does the lower opening of the AEX have on investors?
A lower open could signal caution among investors, encouraging them to reconsider their positions or wait for better indicators.
Why does a 'risk-on' sentiment seem to be emerging?
This sentiment is emerging as investors regain confidence in the markets, particularly due to signs of de-escalation of trade conflicts and improved economic prospects.
What should we expect from the China-US trade deal?
The current agreement is provisional and does not provide a long-term solution. It is important to monitor developments carefully, as the situation can change quickly.