Before the bell: Nasdaq Slips, Europe Holds Steady

Hong Kong celebrates again, while AB InBev and Deceuninck raise their glasses.

Are investors anticipating an economic slowdown in the U.S.? After four consecutive losing sessions, the Nasdaq is now down 1.4% for the year, while the S&P 500, after a 0.5% drop, still holds a modest gain of 1.2%. Nervousness surrounding Nvidia (-2.8%) ahead of its earnings release after Wall Street closes is likely a contributing factor. Tesla (-8.4%) also plunged following weak sales figures in Europe. The most significant news yesterday was the sharp decline in U.S. consumer confidence, causing the 10-year Treasury yield to fall another 10 basis points to 4.30%. Meanwhile, European markets outperformed once again, even if just by remaining mostly unchanged. Optimism is being driven by Germany’s new leader, Friedrich Merz, whose proposed €200 billion defense fund—even before coalition negotiations begin—is seen as a strong signal of action. Defense stocks, including ThyssenKrupp (+9.6%), which also produces submarines, continue to thrive.

In Tokyo, the Topix fell 0.4% this morning, but Hong Kong’s Hang Seng Index is surging again (+3.2%). Construction stocks are soaring, while Alibaba (+5.9%) and Tencent (+3.7%) also continue their strong run. Today’s biggest gainer in Hong Kong is actually a “Belgian” stock—Budweiser Brewing Co. APAC jumped 11.4%, with AB InBev holding an 87% stake. In Europe, we’re awaiting earnings from DEME, Danone, Stellantis, Munich Re, and Deutsche Telekom, while in the U.S., Nvidia and Salesforce will report after the bell.

Peso and Real Weigh on AB InBev’s Earnings

At first glance, AB InBev’s EBITDA for 2024 seems impressive, growing 8.2%. However, the company quickly points out that this is an “organic” figure, meaning it excludes foreign exchange effects. Given that AB InBev generates a significant portion of its revenue from Mexico and Brazil, the actual EBITDA increase was only 1%. Both the Brazilian real and the Mexican peso fell sharply, cutting into the company’s results. For 2025, CEO Michel Doukeris forecasts EBITDA growth between 4% and 8%. Meanwhile, underlying earnings per share rose 15%. The hope now is that currency fluctuations won’t drag down profits again this year—or, even better, that they provide a boost.

Building with Lower Costs

Deceuninck struggled with a weak construction market, as its 2024 revenue declined by 4.5%. Both Europe and the U.S. saw sluggish demand, though the company maintained its market share. In Turkey, demand remained strong, but higher interest rates and inflation are expected to weigh on the market in 2025. Despite the revenue decline, EBITDA remained steady at €118.1 million (+0.2%), and net profit jumped 16.5% to €15.9 million. A major reason? The company closed its German factory and streamlined production platforms, permanently lowering costs. Now, all that’s left is for the construction sector to recover…

Did You Know…

that you can now shop at Colruyt’s Okay stores on Sundays? The retailer is adjusting to competition from Delhaize, which already operates on Sundays—and possibly Carrefour soon as well.

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