Banks and insurance companies were further down on Friday in the AEX index at Damrak, which also showed losses. Investors remained cautious following a series of interest rate hikes and recent turmoil in the banking sector. This week, central banks in the United States, United Kingdom, Switzerland and Norway raised their interest rates in a fight against persistent inflation. Last week, interest rates in the Eurozone already rose.
So central banks are more concerned about the continuing rise in the cost of living for households than about problems at some banks. Falling US regional banks Silicon Valley Bank and Signature Bank have run into trouble due to the rapid rise in interest rates.
The AEX was down 0.7 percent at 738.34 points in morning trade. Midcap declined 1.2 percent to 929.65 points. Shares in Frankfurt and Paris fell 0.9 percent. Despite a stronger-than-expected increase in UK retail sales in February, London also fell 0.9 percent.
Banks ING and ABN AMRO lost up to 2.1 percent after heavy losses the previous day. Insurers Aegon, NN and ASR also fell, with losses of up to 2.2 percent in the AEX’s tail group. Outside the financial sector, steelmaker ArcelorMittal, paint maker AkzoNobel and oil and gas group Shell surrendered up to 2 percent. Informant Wolters Kluwer led some risers with a 0.7 percent gain.
In midcap, Euro Commercial Properties lost more than 1 percent after releasing annual figures. Rental income for investors in shopping centers rose slightly last year. Fertilizer producer OCI was down by more than 4 percent. Among smaller companies, TIE Kinetix rose 2.7 percent. The software company saw its order book double from October to February.
In Frankfurt, TUI fell almost 10 percent. The world’s biggest travel company wants to raise 1.8 billion euros through a share offering to repay the German government’s coronavirus support and strengthen its balance sheet.
Adidas gained 0.9 percent. The German sports brand and American superstar Beyoncé have ended their collaboration by mutual consent. According to US media, the end was due to creative differences and disappointing sales of the singer’s clothing line.
The euro was at $1.0788 against $1.0889 the previous day. U.S. oil prices fell 0.6 percent to $69.57 a barrel. Brent crude was down 0.5 percent at $75.54 a barrel.
