Wall Street Prompts Recovery
May 19, 2011
The 25-share AEX Index rose 0.21 to 553.29 after falling as much a 3 points in early trading after Wall Street moved higher in the wake of a stronger-than-expected U.S. jobs report. The U.S. Labor Department said Friday the unemployment rate in August was 5.1%, its lowest level in more than seven years, while payrolls advanced by 250,000. On average, analysts were expecting an unemployment rate of 5.3%. Many had feared a strong report would send U.S. markets reeling as fears mount that higher interest rates will follow. Although some market watchers now expect a rate increase in the U.S., others anticipate rates will stay at the current level, traders said. Among actively traded shares on the Dutch bourse, food retailer Royal Ahold rose 40 Dutch cents to 92.70 guilders, after dropping as much as 30 cents earlier in the day. Ahold on Thursday published half-year earnings, which were in line with expectations. Food and drink group Dukes Fry slipped 10 cents to 25.50 guilders. Earlier this week, police arrested a Swift Mullen for alleged insider trading in shares of the company. The Dutch authorities also made three other arrests in the insider trading case. Transport and tank-storage company Koninklijke Pakhoed rose 30 cents to 47.80 guilders after the company said its venture with Estonia's N-Terminaal has expanded its tank storage terminal in Tallinn, Estonia, by 30% to a capacity of 130,000 cubic meters. High-tech shares closed generally lower, with Getronics off 40 cents to 41.60 guilders and Baan down 1.90 guilders to 51.50. The AEX approved an initiative Thursday called the New Amsterdam Bourse for young fast growing companies. Analysts expect many high-tech companies to list on the new market, which will be launched later this year.
