Markets with some corporate movements | Calamatta Cuschieri

European markets closed with losses on Thursday with investors digesting share buyback plans from several of the biggest banks in the United States. At the beginning of the session, Wall Street opened mixed after the Federal Reserve approved the capital plans of the 34 largest US banks it analysed in its comprehensive capital analysis and review report. This soon ended when Technology Stocks started to drop, with the Dow Jones sliding, erasing the gains from the big banks. Microsoft, Apple and Visa were amongst the under performers.

The DAX bled 1.83% as Infineon lost 3.65%. RWE and Beiersdorf followed with decreases of 3.23% and 3.22%, respectively. The CAC 40 fell 1.88% as Bouyges dropped 3.81%.The FTSE 100 declined 0.51%, erasing earlier gains as the resurgent pound put pressure on the index. Micro Focus International being the worst performer whose stocks lost 3.79% on the main English Index. On the currency side, the euro grew 0.4% against the dollar, changing hands for 1.142 and trading at a one-year high. Earlier in the session, the Eurozone currency reached levels from May 2016.

Corporate movements

The pay-tv Sky Plc shares were in the green area after the UK government digested the 21st century fox proposed bid to buy the remainder of Sky shares. If this deal goes through, this will add another hurdle to Rupert Murdoch’s family control of the UK Media. Both Sky and 21st Century fox shares rose to the news.

HSBC Holdings Plc was up, following Morgan’s Stanley raise in its Hong Kong listed shares as well as on its per-share earnings expectations through 2019. Meanwhile the bank’ s North American units passed the Federal Reserve’s stress test, thus clearing the way for more than $3 billion of capital to be returned to shareholders. This news sent the shares up.

Shares in Tesco Plc were also in positive territory after the company requested the UK Regulator to fast pace the process for the aquisition of Booker Group Plc. Back in January Tesco had agreed to buy Booker for 3.7 billion British Pounds. This deal combines UK’s largest retailer with the country’s largest food wholesaler, which will result in cost savings for the supermarket.

Drug chain store Walgreens Boots Alliance Inc will not be acquiring Rite Aid Corp, after failing to win antitrust approval, but this did not stop the company to bid for nearly half of its smaller rival’s stores for $5.18 billion. The news led Rite Aid’s shares to plunge heftily while Walgreens shares were up.

Disclaimer:

This article was issued by Rodrick Duca, Trader 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 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.