Before the bell: advertising stocks on the rise

Profit-taking is visible in Asia, although BYD is up more than 5%. Goldman Sachs and LVMH report results today.

For the second consecutive week, global equity markets posted solid gains. The S&P 500 slipped 0.1% on Friday but still advanced 3.6% over the week. The Nasdaq added another 0.4% on Friday, bringing its weekly gain to 4.7%. Nvidia (+2.6%) and Amazon (+2%) were actively bought, while IBM (-2.7%), Nike (-3.1%) and Salesforce (-3.5%) lagged. European markets gained an average of 4.1% last week and closed slightly higher on Friday. On Euronext Amsterdam, ASML rose 2.9% on Friday, bringing its weekly gain to 12.3%. Stainless steel specialist Aperam climbed another 3.7% on Friday, resulting in a weekly gain of 16.7%. It was, in short, a strong week for equities.

The new trading week, however, starts on a weaker note. In Japan, the Topix is down 0.8% this morning. The standout performer in Tokyo is Dentsu, whose shares jump 9.3%. The move is driven by a potential settlement with the US Federal Trade Commission to end an investigation into whether advertising firms violated antitrust laws through coordinated boycotts. For the same reason, peers such as Publicis Groupe, WPP and Havas may also perform well today. In Hong Kong, the Hang Seng falls 1.2%, with BYD (+5.6%) as the biggest gainer. Today, the International Monetary Fund and the World Bank convene. Results are due from LVMH and Goldman Sachs, while Texaf publishes its annual report.

Appetite for Hungarian equities

What should we make of the election victory of Peter Magyar in Hungary? The Hungarian currency has already posted strong gains. At the opening of the Budapest stock exchange, Hungarian equities are also likely to attract buyers. Why? Because Hungary may be seen as less of a disruptive force within Europe and could be rewarded accordingly. Brussels had blocked 17 billion euro in support for Hungary, which may now be released. A Magyar-led government likely offers more stability than Viktor Orbán. There may also be less room for corruption and cronyism as power shifts after 16 years. Hence the narrative: a new wind and a new spring for the Budapest stock exchange. Time to consider a Hungary ETF?

Pension savings reforms

You heard it first at Spaarvarkens. On Saturday, we discussed in Spamalot the government’s plan to reform pension savings. On Sunday morning, our view appeared on hln.be, followed by calls from De Morgen and HBVL for further commentary. A member of parliament even requested the Spamalot. Should I have made that Mickey Mouse joke? Yes. Where would we be without some humour?

Did you know…

that the Hungarian stock market had already anticipated a victory by Peter Magyar? Last week, the BUX index in Budapest rose 7.2%, bringing its gain since the start of the year to 19.7%.

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