Market commentary: Gains for energy, tech shares in EU markets

U.K. stocks moved marginally higher on Monday morning putting them on track for their first gain in three sessions. The FTSE 100 rose almost half a percent.

Leading the way up were bank shares gaining on the back of Mark Carney’s statement that there would be no major overhaul of bank capital requirements.

Barclays PLC and Standard Chartered were both up just shy of 2 percent after anxieties over new strict banking regulations were eased. The other gains came mainly from the energy sector after oil prices moved above $44 a barrel. Shares of oil giants Royal Dutch Shell PLC and BP PLC each rose over 1 percent.

On the downside however InterContinental Hotel Group PLC lost the buoyancy given by takeover speculation as shares lost 4 percent after the company stated that it is not considering a potential sale or merger of the company.

In other European markets, shares opened marginally lower with the Stoxx Europe 600 opening in the red. Leading the way lower were utilities, consumer goods and health care shares, however, there were gains for energy and technology shares

Single stock names that are moving the market include Renault SA that fell close to 3 percent after France’s Prime Minister Manuel Valls said the government is opposed to a merger between the French auto maker and Japan’s Nissan Motor Co. 

Valls however wishes to conserve the alliance between them as the two Auto companies already hold stakes in each other, with Renault owning close to a 45percent controlling stake in Nissan which in turn owns a 15 percent stake in Renault.

Renault’s decline pressured France’s CAC 40, which shed 0.3 percent.  The CAC is facing its first loss after six sessions of gains. Germany’s DAX also fell marginally after the auto parts supplier Continental AG dropped 3 percent after its sales missed analysts’ projections.

In Italy, UniCredit shares were up 1 percent following report that Italy’s biggest bank by assets is considering restructuring by cutting as many as 12,000 jobs and selling off some assets.

Names to look out for on the U.S. markets include Arch Coal, Sothebys, Scientific Games and Zogenix Inc as they will all be reporting earnings today.

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.