Market commentary: US markets eyeing up a second day of gains

U.K. stocks opened higher for the first time in five sessions today. The FTSE 100 index gained almost half a percent with SABMiller PLC shares leading the way up after the brewer agreed to be bought out by rival Anheuser-Busch InBev N.V. 

SABMiller shareholders will receive £44 in cash per share, this is a 50 percent premium over SABMiller's closing price on Sept. 14, the last business day prior to renewed speculation about a long-anticipated deal valued at $107 billion that combines the world’s biggest brewers.

J Sainsbury PLC shares also rose close to 2 percent after the supermarket chain announced a profit for the first half of its financial year.

Other movers today include the mining and energy sectors that are the only ones weighing on the index after the release of further downbeat industrial output data from China. Miner Anglo American PLC dropped just under 1 percent.

Meanwhile, the pound gained on the back of the labour-market update that will help shape the Bank of England’s view on an interest rate hike. U.K. unemployment fell to the lowest in more than seven years in the third quarter and the number in work rose to a record.

The unemployment rate fell to 5.3 percent.by 103,000 workers but slowing pay growth may be a point of reflection for policy makers choosing the right time to lift interest rates.

This afternoon investors will also be tuning in to a speech by European Central Bank President Mario Draghi for renewed direction and comments about monetary policy and further Quantitative Easing.

U.S markets are eyeing up a second day of gains with futures up on Wednesday. Shares in Macy’s Inc. are likely to see active trading, with the department store chain due to post quarterly earnings.

Alibaba Group Holding Ltd. could also see active trading as the Chinese company reported record sales on Singles’ Day.

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.