Record rally driven by IT
The AEX index rose sharply between 26 September and 3 October, reaching a record high of over 963 points on Thursday (intraday). This peak was partly achieved thanks to price increases in the IT sector, particularly shares in chip-related companies.
At the time of writing (Friday morning), the AEX moves around 959 points. Sentiment on the Damrak in Amsterdam was positive this week, despite lower job figures in the US and a dip in American consumer confidence, which fell to its lowest level in four months in September. The decline in consumer confidence can probably be attributed to higher expected retail prices in the US due to import tariffs. However, inflation remains an issue in Europe and the Netherlands as well.
The AEX index rose sharply between 26 September and 3 October, reaching a record high of over 963 points on Thursday (intraday). This peak was partly achieved thanks to price increases in the IT sector, particularly shares in chip-related companies.
At the time of writing (Friday morning), the AEX stands at around 959 points. Sentiment on the Damrak was positive this week, despite lower job figures in the US and a dip in American consumer confidence, which fell to its lowest level in four months in September. The decline in consumer confidence can probably be attributed to higher expected retail prices in the US due to import tariffs. However, inflation remains an issue in Europe and the Netherlands as well.
ASML was in the spotlight this week because of the company's role in the AI chip chain and its recently announced collaboration with French AI company Mistral. Several analysts have recently raised their target price for ASML. Chip manufacturer ASMI also rose this week.
Noteworthy news
France's budget has been under pressure recently. This meant that the French government temporarily had to pay 90 basis points more on government bonds than the German government. It is telling that French multinational Schneider Electric placed a twelve-year loan on the market earlier this month at an interest rate 15 basis points lower than what the French government paid for a comparable bond. Who is most trusted?
In the US, Democrats and Republicans cannot agree on the government budget (and especially spending). This means that the US government has been shut down since Wednesday until a deal is reached. As a result, the price of gold rose further to a level of almost USD 3,900. Another interesting piece of news from the US, where the largest takeover with borrowed money was announced this week: video game developer Electronics Arts (EA) is being taken off the stock market for USD 55 billion.
Closer to home, in the Netherlands, we can be proud of our biotech industry. This week, it was announced that the Danish-Dutch biotech group Genmab is acquiring the Dutch company Merus for USD 8 billion. Both companies are based in Utrecht.
Looking ahead: the markets are increasingly counting on interest rate cuts from the US Federal Reserve. Markets also assumed that the Fed will cut interest rates again this year. However, we believe that the Fed will not do so until 2026. In the meantime, Trump could shake up the market again in the coming period, as has been the case several times in recent months. In August, for example, the White House announced an unusual deal with chip manufacturer Intel, whereby the US government acquired a stake in the chip manufacturer. This week, it was announced that the Trump administration has also reached an agreement with pharmaceutical company Pfizer, enabling Americans to buy medicines at lower prices. New deals between the White House and companies may be announced in the near future.