In the red
This week, there was only one thing that mattered: Nvidia's earnings on Wednesday evening at ten o'clock. Almost everything else was secondary, and there wasn't much other news anyway. Concerns about valuations of AI-related companies pushed the AEX into the red, and it stayed there.
Since last Friday morning, the AEX index has posted a loss of 3.5%, standing at around 920 points this Friday morning. At the same time, the Eurostoxx600 also recorded a loss of almost 3.0% compared to last week's closing level. It was mostly red across the boards, with very few stocks managing to stay in positive territory. Unilever (0.6%) was the lone gainer on the AEX index. The biggest decliners were Adyen (-7.4%), Prosus (-7.1%) and AkzoNobel (-7.0%).
Unexpected announcement by AkzoNobel
Coating company AkzoNobel surprised the market with the news that it has made a takeover bid for industry peer Axalta – although it is more of a merger than an acquisition. Axalta shareholders can exchange their shares for 0.6539 AkzoNobel shares. AkzoNobel shareholders will keep their shares but will receive an additional dividend once the merger is completed. The new company will be headquartered in both the US and the Netherlands. After shareholder approval, the current listing on the Amsterdam AEX index will cease to exist. However, shareholder Artisan Partners has already indicated that it does not agree with this offer.
Nvidia delivers, but enthusiasm is only temporary
On Wednesday evening, Nvidia released its quarterly results (see also: Nvidia earnings rescue markets from AI valuation concerns), and they did not disappoint. The next morning, the Dutch markets reacted with relief, which was particularly visible in semiconductor stocks such as ASML and BE Semiconductors, which opened with gains. However, those gains faded again during the course of the day due to renewed concerns about valuations. Sentiment shifted after strong US jobs data, which reduced the likelihood of an interest rate cut.
CVC Capital announces quarterly figures
CVC Capital announced its third quarter results. Investments this quarter were very modest but still in line with 2024 levels. Investors who exited private equity in the third quarter generated a record EUR 4.9 billion. The returns for these departing investors were solid. Fundraising continues to go well for CVC, with healthcare and the buying and selling of stakes in private companies playing a leading role. CVC reported a EUR 1 billion increase compared to the previous quarter.
Looking ahead
Friday afternoon could still bring some market movements as the monthly option expiry takes place. Beyond that, investors, after Nvidia’s positive news, are already looking ahead to Black Friday sales figures and the Federal Reserve's interest rate decision in December.
Next week, there is not much news on the agenda. We expect results from Prosus, HAL Trust and Onward Medical. On Tuesday, ABN AMRO will present its future plans at Capital Markets Day.