Market commentary: Stoxx 600 registers fifth consecutive gain

European markets battled through a choppy session on Thursday, but managed to end the day higher. The news leading markets was the disappointing economic trade data coming out of Germany.

The data indicated an export slump of 5% in August, meaning a fall in trade surplus from an expected €22.5bn to €19bn. this increases concern about the slowdown in growth of emerging markets and China, and the whiplash effects it is going to have on European producers.

Despite this news the Stoxx 600 ended marginally higher on Thursday, making it the fifth consecutive gain for the index, the longest streak of wins since August.  Germany’s DAX 30 and France’s CAC40 also closed higher, both adding 0.2%.

In stock specific news, Ferrari’s status as a maker of luxury auto’s is having an influence on the value of its initial public offering. The amount has been bumped up to as much as €11 billion due to the relatively inelastic demand of this IPO. An IPO price range will be published in an updated filing as early as Friday however one thing to note is that the valuation may change amid market volatility since Volkswagen AG’s diesel-testing scandal emerged last month.

Telecom Italia has hired Deutche Bank AG to sell its €1.6 billion stake in INwit SpA, the mobile-phone tower that had an IPO this year. Italy’s largest phone carrier is working with the investment bank to accelerate the sale process.

In London, U.K. stocks finished higher after the BOE kept interest rates on hold and indicated that monetary policy will remain accommodative due to current low inflation conditions.

The FTSE 100 index managed to close 0.6% higher, closing its seventh straight day in positive territory.

The main movers in the UK were Mining companies that managed to erase early losses and moved higher. Commodity producers have now managed to rebound from a slump that dragged over the summer. Shares of Fresnillo PLC gained 4.2%, BHP Billiton PLC rose 3.3%, and Randgold Resources Ltd advanced 1.8%.

Shares of SABMiller PLC rose 0.2% after Anheuser-Busch InBev NV responded to the U.K.-listed brewer’s rejection of its offer on Wednesday, saying it was “surprised SABMiller’s board considered the bid too low”. The premium offered for SABMiller was in excess of 40%.

The U.S markets managed to secure their fifth consecutive gain with the Dow closing above 17,000. Following the minutes from the Federal Reserve’s last meeting there were few surprises. Officials are still hesitant to hike rates for the first time in over a decade due to worries about the strength of the global economy.

This morning U.K. stocks pushed higher, as crude prices rose past $50 a barrel, lifting heavyweight oil companies, while Glencore PLC led mining-related stocks higher. Another mover this morning was Lloyds Banking group, their shares were up half a percent after U.K Government reduced its stake in the bank by 1percent.

This article was issued by Andrew Cassar Torregiani, Trader/analyst at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.