Germany equities on the rise & Greece’s return to the debt market | Calamatta Cuschieri

Tuesday marked a positive day for European equities, with the majority of the sectors and major bourses in positive territory. Major European indexes such as; the FTSE 100, Euro Stoxx 50, France’s CAC 40 and Germany’s Deutsche Boerse were all in the green.

German equities prominently featured, as business confidence unexpectedly experienced a continuum rise in July, this hitting record highs for the third consecutive month. 

In-line with the positive stance of the European Market, US stocks mostly rose on Tuesday, with the S&P 500 hitting an intraday record on the back of better-than-expected results from bellwether companies.

German equities

Business confidence in Germany surged on Tuesday, as Munich based Institute for Economic Research, described German company’s mood as “Euphoric”.

Major German players in the financial services industry such as Deutsche Bank AG, Commerzbank, and Allianz were all in the green. Deutsche Bank AG, which is scheduled to report second-quarter results for the year on July 27, is expected to report earnings, following the markets expectation of accelerated economic growth and the likely increase in interest rates.

On the contrary to the above cited optimist environment, the German automotive industry is being faced with big fines following allegations of collusion. Volkswagen, BMW, and Daimler being the companies involved. The three automotive giants are being accused of secretly working together on technology, engaging in cartel-like behavior since the 1990s. This cartel-like behavior could have led to the “dieselgate” emission scandal. Despite this concern, BMW and Daimler have managed to partially recoup Monday’s fall in share price, on Tuesday’s session.

Greece raises €3 billion in first bond sale for three years

After an absence of three years, Greece has finally returned to the debt market, taking advantage of the growing investor confidence in the country’s economic recovery. 

Greece raised €3 billion with a new five-year bond, partially being raised from existing investors, who agreed to swap their current holdings for a portion of the new issue.

The last debt issue the Greek government has allotted, takes us back to 2014, with a yield of 4.9% in contrast to the latest 4.62% issue.

Michael Kors acquires Jimmy Choo

American luxury fashion company, Michael Kors announced that it has agreed to acquire Jimmy Choo for $1.2 Billion. Following this announcement, Jimmy Choo’s shares surged to an all-time high, increasing by 17.03%.

Disclaimer:

This article was issued by Christopher Cutajar, Junior Investment Advisor 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.