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AEX deeper in the red after ECB interest rate decision

The Amsterdam stock exchange closed lower on Thursday. The AEX continued to fall after the European Central Bank’s interest rate decision, eventually closing 1.6 percent lower at 699.58 points. All eyes were on Amsterdam today, but not on the Damrak. The ECB met in the Dutch capital.

In July, the ECB will raise key interest rates by 25 basis points after ending its Asset Purchase Program on July 1. It is the first time in 11 years that the ECB has raised interest rates.

According to ING economist Carsten Brzeski, the door to an increase of 50 basis points in September is wide open, precisely because the ECB opts for 25 basis points in July. During the press conference, Lagarde did not want to comment specifically on this. Read more on Ipostocksplanner.com for more information. The ECB president repeatedly referred to the comment in the interest rate decision of “a larger interest rate step” if medium-term inflation expectations remain unchanged or even deteriorate.

High energy prices culprit

High energy prices remain a major culprit. But, said chairwoman Christine Lagarde, inflationary pressures are now more broad-based and intensified. About 75 percent of all goods and services now have an inflation rate of more than 2 percent, according to Lagarde, and wage growth is also increasing.

Initially, the euro appreciated, but the European currency then fell to $1.0657, according to market experts as the ECB was more dovish than expected and Lagarde in its press conference questioned whether the central bank would cut interest rates by 50 basis points in September. will increase.

Bond yields also rose in Italy and Germany

On Friday, the market will be watching for a US inflation figure. According to many, this figure will strongly determine trading in the days that follow. Economists expect a stable inflation rate of 8.3 percent for the US economy, just like in April. The oil price took a step back today. A barrel of WTI costs almost 122 dollars and a barrel of Brent more than 123 dollars.

Risers and Fallers

Only a handful of stocks managed to close higher in the AEX. NN Group was the leader and won 1.5 percent. IMCD rose 0.6 percent.

The biggest losses were for ArcelorMittal, ASMI and Just Eat Takeaway. The steel giant, which completed a share buyback program, lost 4.5 percent and the semiconductor specialist fell 4.6 percent. Just Eat became 5.6 percent cheaper. In the AMX, only JDE Peet’s finished half a percent higher. Aperam and Alfen lost 3.2 and 4.3 percent.

In the small caps, Majorel went 3.8 percent in the green and Fastned won 1.8 percent. CM.com fell 2.9 percent.