Market Commentary | Markets in the green

From stocks in Asia to bonds in Europe, financial markets rallied in unison around the world on Thursday, as the dollar weakened after the Central Bank left interest rates unchanged and said it needs more evidence of a stronger economy before it tightens policy. The Fed stood put on interest rates, but Chairwoman Janet Yellen indicated a rate hike could be in the cards by year’s end.

European markets were safely in the green, and US stocks closed near session highs on Thursday.

Mining and oil firms were among the biggest advancers, scoring a boost from a weaker dollar in the aftermath of the Fed decision. Basic resources were also among the top-performing sectors in Europe on Thursday. Strong performers included BHP Billiton, Randgold, Glencore and ArcelorMittal which all traded over 4% higher during the session.

Telecoms were also trading firmly higher. Shares in Ericsson added 2.6% after media reports that the maker of mile telecoms equipment said it plans to close its last manufacturing sit in Sweden and cut around 3,000 jobs. Elsewhere, Nokia shares were also trading in positive territory after it launched a public buyout offer for all securities of Alcatel-Lucent that the Finnish telecom-equipment maker doesn’t yet own. And shares in Rocket Internet were up 7% after the German tech company said the biggest companies in its portfolio narrowed their combined loss in the first half of the year.

Amongst individual movers, shares in Red Hat Inc. jumped over 4.5% after the software company released quarterly results and outlooks that beat estimates. Amazon.com Inc. also had a very good session on Thursday, as shares reached an all-time intraday high of $805.89 and finished up 1.9%, making it an all-time closing high.

Shares of Apple were also in the green on Thursday after Nomura analysts reportedly raised their price target for the tech giant to $135 from $120. Analysts cited positive reports from multiple regions regarding the iPhone 7’s launch, suggesting stronger-than-expected demand for the gadget.

In other news, legendary investor Leon Cooperman has been accused of insider trading by the Securities and Exchange Commission in relation to securities issued by Atlas Pipeline Partners and bought in 2010. Cooperman said that neither he nor his fund engaged in unlawful conduct. The trades had raised suspicions at the time, even from Cooperman's own son. Shares in companies that list Cooperman's fund as major stockholders declined following the announcement of the charges. 

This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt . The information, views and opinions provided in this article are 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 Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.