Before the bell: record day for the Bel20

European markets enjoyed a standout session on Wednesday, but following Trump’s speech overnight, there is a strong likelihood that investors will take profits. In Asia, markets are clearly in the red this morning.

European equities had one of their best days of the year yesterday. Both the Euro Stoxx 50 (+2.9%) and the Bel20 (+2.9%) benefited from investor expectations that the war in the Middle East may be nearing its end. Notably, it was defence stocks that featured among the strongest performers. Rheinmetall (+9.5%) and Leonardo (+7.9%) led the rally. Nike (-15.5%) fared much worse after issuing a weak outlook for the coming quarter. Investors are growing tired of promises of improvement and want to see results. The same applies to Trump. In a speech overnight, the US president stated that he intends to strike Iran even harder in the coming weeks. There is no sign of de-escalation.

In Asia, the speech is prompting investors to pull back. South Korea’s Kospi index is down 4.3%, with Samsung Electronics losing 6.1%. Japan’s Topix is also declining by 1.6%. In Europe, corporate news is limited as the extended Easter weekend approaches. However, the Belgian parliament will vote today on the introduction of a capital gains tax. If approved, investors will be required to pay a 10% tax on capital gains from 2026 onwards.

Green energy is back in focus

Investors paying attention will recognise one key point: it has become more important than ever to reduce reliance on oil and gas. In the past, the narrative was that governments would invest in renewable energy to meet climate targets, but in recent years that proved to be a weak business case. The issue is that green energy comes at a cost, and consumers are unwilling to bear that cost when energy bills rise. What is now becoming a stronger investment case is the growing emphasis on energy independence. I am convinced that the crisis in the Middle East will create structural demand for companies active in solar, wind, storage and battery networks. Those who have followed my lessons in the “Hangmatbeleggingscursus” know that this can be accessed through thematic ETFs. If you believe in solar energy, the Invesco Solar Energy ETF offers a pure play. The Global X Wind Energy ETF, with the ticker WINDY, focuses on wind energy. For broader diversification, the iShares Global Clean Energy ETF provides exposure to the wider sector, including renewable energy producers. In any case, green energy is a multi-decade growth story, not a short-term trend—and that is exactly what long-term investors seek.

Buy copper

Since the crisis in the Middle East, copper prices have fallen sharply. This is not surprising. Copper is often referred to as “Doctor Copper” because its price tends to reflect the health of the global economy. And that economy may be catching at least a cold—if not something more severe—based on what I observe in Asia. Where I am currently based, factories are already closing earlier and fuel rationing has begun. The same trend is visible in China. And who consumes the most copper globally? Asia. It is therefore not surprising that copper prices have dropped significantly. Still, I remain convinced of the long-term investment case. I recently returned from a three-week trip through China and Taiwan, and what I saw was striking: electric vehicles everywhere—literally everywhere. The electrification trend is likely to continue despite potential economic slowdown, with rising demand for EVs and data centres driven by AI. The energy crisis will only accelerate this trend, and much of the required infrastructure will rely on copper. Investors looking for direct exposure to copper prices can consider the WisdomTree Copper ETC. The Global X Copper Miners ETF has also declined nearly 20% from its peak, although it gained 6% yesterday. I expect some of that gain to be reversed today. In a weaker economic environment, copper stocks could fall further, and that risk should not be ignored. But copper remains a metal of the future—and investing in the future is rarely a bad strategy.

Did you know…

that research by J.P. Morgan Asset Management shows that the seven best trading days of the past 20 years all occurred within two weeks of the ten worst days? Investors who exit the market to avoid losses often miss the strongest recovery days that follow.

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