Before the bell: the art of the deal

Markets await the ECB’s interest rate decision. TINC launches a capital increase, and automotive chips are back in demand.

According to US President Donald Trump, reaching a trade agreement with Chinese President Xi Jinping is no easy task. Should we feel sympathy? He made his bed—now he has to lie in it.
Yesterday, the Euro Stoxx 50 climbed 0.5%, while the Bel20 (+0.1%) was flat. On the Brussels exchange, standouts included Lotus Bakeries (+2.4%) and Melexis (+4.6%), the latter benefiting from a sector-wide rally. US-based ON Semiconductor (+6.1%) gave a positive outlook for the automotive industry, boosting Infineon (+4.2%) and NXP Semiconductors (+5.6%) as well. Meanwhile, the Nasdaq rose 0.3%, and the S&P 500 was unchanged.

In Asia this morning, Hong Kong’s Hang Seng Index is up 0.5%, while Japan’s Topix fell 1%. Today all eyes are on the ECB’s interest rate decision. Markets expect a 25 basis point cut, which would bring the benchmark rate down to 2%. In the US, Broadcom and DocuSign report earnings, while in Canada, it’s Lululemon’s turn to open its books.

China strikes back

The trade war is leaving casualties on both sides. In Beijing, regulators have temporarily blocked a partnership between Apple and Alibaba to roll out Apple’s artificial intelligence services in China. The Cyberspace Administration of China is believed to have stepped in due to rising geopolitical tensions. The delay gives domestic players like Huawei and Xiaomi a competitive edge in the AI race. Chinese regulators are also reportedly scrutinizing tech giants Nvidia and Google.

TINC aims to double

Infrastructure investor TINC plans to raise 113 million euro through a capital increase. Existing shareholders will receive preferential rights: for every three shares held, they can subscribe to one new share at a price of 9.34 euro, representing a 14.5% discount to Wednesday’s closing price of 10.92 euro. Over 70% of TINC’s shares are held by retail investors, making the preferential rights particularly attractive—those who participate will avoid dilution. This capital increase is part of an ambitious growth plan to double TINC’s portfolio by 2030. With investments in bridges, roads, wind farms, and data centers, TINC has been a stable presence on the Brussels exchange for a decade and is often likened to a bond.

Did you know…

that ECB President Christine Lagarde reportedly considered ending her term early to become chair of the World Economic Forum? The move would nearly double her salary. However, the ECB has confirmed that Lagarde will serve out her full mandate.

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