Before the bell: German Election Results Spark Optimism

PostNL looks to Wallonia for growth, while Vastned’s profits struggle post-merger.

European stock markets started the week in the red, with Wall Street also struggling. The German DAX (+0.6%) was a notable exception, benefiting from the CDU’s victory under Friedrich Merz. Investors see this as a chance to revive Germany’s stagnating economy. While the Christian Democrats and Socialists (SPD) together didn’t secure a majority of votes, they now control a majority in parliament, thanks to smaller parties failing to meet the electoral threshold. This situation could strengthen the pro-business Merz, giving him more room to push his economic agenda. In Amsterdam, Just Eat Takeaway (+54%) was the biggest winner of the day, following a takeover bid. However, Prosus (-8%), the bidder, was punished, partly due to profit-taking on Chinese tech stocks, which affected its Tencent stake. Over in the U.S., Nike (+4.9%) gained traction as an analyst praised its renewed focus on distributor partnerships. Meanwhile, Nvidia (-3.1%), which is set to report earnings tomorrow, was the weakest performer in the Dow Jones. According to some reports, Microsoft (-1%) has been canceling data center leasing contracts.

Today should be a relatively quiet session, with ASMI reporting earnings in the Netherlands and Home Depot in the U.S. Tomorrow, however, will bring a flood of earnings in Brussels. In Asia, markets are reacting to Trump’s announcement that he will push ahead with new tariffs. Stocks in Hong Kong are down 1.3%, while Tokyo lost 1%.

Struggling PostNL Seeks Salvation in Belgium

Dutch postal service PostNL reported a two-thirds drop in profit, as the decline in letter mail volumes (-7%) continues to weigh on results—similar to what’s happening at bpost. Despite seeking government compensation for universal postal service obligations, the Dutch government has been reluctant to provide financial support. The parcel division is growing, but intense competition and seasonal peaks are eating into profits. In a bid to strengthen its position abroad, PostNL is turning to Belgium, where it has already grown significantly in recent years. Its success in Wallonia could be partly attributed to restructuring and labor strikes at bpost, which have disrupted its Belgian competitor’s operations. bpost is set to report its own earnings this Friday.

Real Estate? Not So Solid

Retail property company Vastned reported a profit decline of 2.2 million euros, down to 18.6 million euros. Per share, that translates to 2.38 euros, an 18% drop. These are the company’s first results following the merger of its Belgian and Dutch retail real estate divisions. Rental income fell slightly, but higher interest costs were the main reason for the profit decline. That situation is expected to worsen further in the coming years. For 2025, Vastned forecasts earnings per share of 1.95 to 2.05 euros, marking another 19% drop. Additionally, the debt ratio stands at 43.5%, which isn’t exactly low.

Did You Know That…

Hedge funds now have their lowest exposure to the Magnificent Seven tech stocks in nearly two years? This was calculated by Bloomberg, signaling a shift in market sentiment toward U.S. big tech giants.

This article was translated from Dutch and was originally published on Spaarvarkens.be.