Before the bell: Closing in the Green

Asian markets rebound while Trump sows fresh confusion. Ageas announces major acquisition in the UK.

After an extremely volatile week, global stock markets ended Friday on a high note. The S&P 500 gained 1.8% while the Nasdaq rose by 2.1%. Nvidia (+3.1%) and Apple (+4.1%) led the gains, while Tesla (-0.1%) was one of the few decliners. JPMorgan (+4%) benefited from solid quarterly earnings and likely made the most of the high trading volume last week. European markets will respond today to the positive close on Wall Street. On Friday, European indices still showed losses, with the Euro Stoxx 50 down 0.7% and Frankfurt’s DAX falling 0.9%. Siemens (-3.4%) and Stellantis (-3.9%) were among the notable losers. Brussels outperformed with a 1.1% gain for the Bel20, thanks to strong showings from Argenx (+4.6%) and Elia (+5.7%).

Will markets stabilize this week? Perhaps. But the American president is likely to keep stealing the spotlight. After initially announcing exemptions from steep import tariffs for smartphones and semiconductors, Trump now denies any exemptions exist for electronics. A 20% tariff may still apply. And if there is an exemption, it’s only temporary, he says. Everything is “still under review,” according to the president.

In Asia, investors are filling their shopping baskets again. Tokyo’s Topix is up 1.4%, while Hong Kong’s Hang Seng Index is gaining 1.8%. Baidu (+4.6%) and Alibaba (+4.6%) are notable gainers, but Hong Kong Exchanges & Clearing (+6%) leads the way, as the exchange operator profits from higher trading volumes. Later today, before Wall Street opens, investment bank Goldman Sachs will publish its quarterly results. After the market closes, Wereldhave Belgium will go ex-dividend—anyone who buys today will still be entitled to the gross dividend of 4.3 euro (net 3.01 euro). Later this week, the company will announce the conditions for the scrip dividend. Payment date is set for April 28.

Ageas enters UK’s top three

Ageas announced this morning that it is acquiring its British peer esure for 1.5 billion euro. The seller is private equity firm Bain Capital. With Ageas currently valued at 9.7 billion euro, this is no small acquisition. Financing isn’t an issue—the insurer has cash and borrowing capacity, and the dividend is not at risk. Ageas has long aimed to expand its presence in the UK insurance market. Not long ago, it made multiple attempts to acquire Direct Line Insurance, but the deal fell through as the target sought a higher sale price. Now Ageas has succeeded in securing a top-three position in what it sees as an attractive market. The acquisition is expected to generate substantial cost savings.

The cement no longer sticks

Following in the footsteps of Greece’s Titan Cement, Swiss peer Holcim is spinning off its North American division and listing it on Wall Street. Although the move was first announced in January last year, Holcim has now revealed the timetable. The spinoff will take place in June, pending shareholder approval at the May 14 AGM. For each Holcim share, investors will receive one share in the new company, which will be named Amrize and listed on the New York Stock Exchange. Belgian shareholders should pay close attention, as the spin-off will be treated as a “dividend,” meaning it may be subject to Belgian taxation.

Did you know…

that Wall Street ended last week with impressive gains? The S&P 500 and Nasdaq rose by 5.7% and 7.3% respectively over the week. In contrast, European markets lost between 1.5% and 2%, while Hong Kong dropped 8.5%.

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