June kicks off in the green | Calamatta Cuschieri

Markets were in the green on Thursday as investors welcomed the new month with a rally in oil prices and continued to follow the developments in the UK election campaign with just one week to go

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Calamatta Cuschieri
2 June 2017, 11:08am
Oil prices shot up 1.5% after a report from the American Petroleum Institute showed US crude supplied a more than expected 8.7 million barrels last week
Oil prices shot up 1.5% after a report from the American Petroleum Institute showed US crude supplied a more than expected 8.7 million barrels last week
Markets were in the green on Thursday as investors welcomed the new month with a rally in oil prices and continued to follow the developments in the UK election campaign with just one week to go. Another election poll showed a drop in support for Theresa May’s governing Conservative Party.

It was a similar story on Wall Street with stocks trading higher on Thursday after a positive read on the labour market underlined an aspect of the economy that remains strong, helping the benchmark S&P500 rebound from a two-day decline.

Oil rallies

Oil prices were mostly to thank for the positive trading mood on Thursday. Prices shot up 1.5% after a report from the American Petroleum Institute showed US crude supplied a more than expected 8.7 million barrels last week. This drawdown in inventories sparked hope that official data from the US Energy Information administration will show similar figures.

Shares of oil related companies were boosted by this jump in prices. Shares of Technip gained 1.5% and Eni Spa rose 0.64%.

Oil slid below $50 a barrel last week after the agreement by the Organisation of Petroleum Exporting Countries and its allies to prolong supply cuts for 9 months disappointed some investors who were hoping for more. While US stock piles have edged lower, American production and drilling continues to climb.

Earnings continue to roll out

Shares of Hewlett Packard found themselves in the red on Thursday. The provider of computer servers reported a weaker than expected earnings report which saw their shares slip 5.75%.

Vivendi shares moved higher on Thursday after the French media group obtained EU approval for its plan to gain control of Telecom Italia. The latter announced Thursday that Vivendi’s CEO would become its chairman. Shares were up 2.5%.

But on the other hand, shares of Banco Popular Español sank 15.6% after a Reuters report highlighted that a top EU watchdog warned the Spanish bank it will have to be wound down unless it finds a buyer.                                     

 

Disclaimer:

This article was issued by Rebecca Naudi, 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.

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