The Brussels stock exchange closed higher on Tuesday, with index heavyweight Argenx and chipmaker Melexis leading the gains.
The Bel20 gained 0.6% to close at over 5,751 points. On a monthly basis, the star index rose 3% and on a quarterly basis even 14%.
Despite the uncertainty surrounding the oil price, markets have risen steadily since March, helped by hopes of a peace deal between Trump and Iran and the reopening of the Strait of Hormuz, according to Degroof Petercam. Strong corporate results and declining inflation after the energy shock support the positive outlook for equities, encouraging investors to hold their positions and not be distracted by the noise.
In Europe, tech stocks led the way on Tuesday, following a strong gain on the Nasdaq on Monday, KBC also noted.
"Under the motto 'Tech is back, baby,' the Nasdaq closed [Monday] 2.1% higher, something in which 'end-of-quarter rotation' may not be entirely innocent," the trading floor said on Tuesday. On Tuesday, the Nasdaq was up one percent.
In Germany, inflation cooled in June to 2.3% year-on-year, much better than the stable price development of 2.6% that was expected. Inflation also declined in France and Italy in June, data showed this morning.
On Monday it already became clear that consumer prices in Belgium rose much less sharply this month. Tomorrow, inflation figures for the entire eurozone will be released.
Inflation is falling in the eurozone thanks to the sharp drop in the oil price, but this must be seen in a global context "that is still dominated by massive investments in AI, which could have an inflationary effect," said economist Bernard Keppenne of CBC Banque.
If Wednesday shows that inflation in the eurozone as a whole also declined in June, the need for a further interest rate hike by the European Central Bank in July becomes much less.
The euro/dollar traded at 1.1413 on Tuesday evening, while oil prices stabilized. The US and Iran would continue talks in Doha on Tuesday about a final peace deal, according to US President Trump, but the BBC reported this afternoon that US delegates would only speak to the negotiators on Tuesday and not with Iran. According to Qatar, no talks between Washington and Tehran are planned, the BBC reported.
Risers and fallers
Within the main index, leader Argenx gained more than 3% on Tuesday. Sector peer UCB fell slightly.
Investors are increasingly negative on European pharmaceutical and biotech stocks, according to UBS. The profits on such investments are therefore mainly used to invest in AI investments, according to the Swiss bank. Among European mid-cap pharmaceutical and biotech companies, Argenx and UCB in particular attract a lot of investor interest, according to UBS.
Melexis rose 2%, in line with European sector peers and after the price losses of last week. On a quarterly basis, Melexis gained more than 51%.
Cofinimmo will be delisted from the Brussels stock exchange today after the merger with Aedifica. Aedifica closed a new credit facility of 620 million euros, but closed more than one and a half percent lower.
Furthermore, Azelis gave up more than 2.5%.
AB InBev closed more than one percent lower at 72.66 euros. Jefferies raised its price target from 80.00 to 84.00 euros this morning, maintaining a buy rating. Despite the strong price performance, Jefferies still sees upside potential.
Gimv is selling its majority stake in AlpenBlu Clinics to Impact Healthcare. Upon completion, the transaction will have a positive impact of approximately 0.25 euros on the net asset value per share. Gimv shares closed more than one percent higher in the BelMid.
IBA received an order from the Instituto Português de Oncologia do Porto FG to supply two compact Proteus ONE proton therapy systems. The end-user price of a system is between 35 and 45 million euros, IBA said. The share fell one percent.
Furthermore, Kinepolis lost more than 2%, while Lakefront Biotherapeutics gained more than 2%, after Madison Avenue Partners reported a stake in the former Galapagos. The US investor, who describes itself as "opportunistic and value-focused," reported a 5.31% stake in Lakefront as of June 15.
Ontex is convening its shareholders to approve a so-called change-of-control clause regarding a bond loan of 400 million euros on Wednesday, July 29. The share fell more than 2%.
Econocom closed more than 5% higher, after 240 million euros were raised through a private placement of debt paper. With the much higher than expected proceeds, thanks to strong demand, the Belgian technology company is refinancing part of its debt early.
Campine shares rose about 6% on Tuesday. Onward Medical and Hyloris lost more than 2%.
