Europe inspires | Calamatta Cuschieri

Global markets got off to a positive start to the week, as Brexit talks got under way in Brussels, enabling the United Kingdom to begin their ‘divorce’ with the European Union

calamatta_cuschieri
Calamatta Cuschieri
20 June 2017, 10:07am
Ocado Group was among the best performers on Monday, as the British online grocery company is considered to be a takeover target of Amazom.com
Ocado Group was among the best performers on Monday, as the British online grocery company is considered to be a takeover target of Amazom.com
Global markets got off to a positive start to the week, as Brexit talks got under way in Brussels, enabling the United Kingdom to begin their ‘divorce’ with the European Union. More good news from Europe saw French President Emmanuel Macron’s pro-EU party and its centrist ally sealing a decisive victory in parliamentary elections.

Stocks across Europe leapt on Monday, with French shares rising the most in more than a month after President Macron’s upstart party obtained a majority in Sunday’s elections. The Stoxx Europe 600 climbed 0.94%, with all sectors gaining ground, led by industrials, oil and gas, and basic material stocks.

US stocks followed suit to open in the green, with the Dow hitting a record and the S&P500 not far behind. Technology shares staged a rebound from last weeks’ bout of weakness, with investors likely to keep an eye on these stocks throughout the week.

Retail in focus

Ocado Group was among the best performers on Monday, as the British online grocery company is considered to be a takeover target of Amazom.com after its bid to purchase Whole Foods last week. Shares soared 11.17% on the news.

It was a good day for other British supermarkets too. J Sainsbury rose 2.26% and Marks and Spencer was up 1.56% after stumbling on Friday. Retail shares had fallen amid concerns of increased competition in the grocery industry.

Technology rebounds

The Dow Jones industrial average gained 100 points and hit a record, surpassing a previous all-time high of 21,391.97, set last week. The information technology sector led advancers, gaining 1.4%. Large cap technology stocks like Facebook, Amazon, Apple, Netflix and Google parent Alphabet all rose during Monday afternoon trade.

Investors are likely to keep tech stocks in focus this week amid concerns the sector could start to drag down the broader market, given the Federal Reserve has indicated it will tighten policy, and as economic data has failed to inspire.

Credit Suisse rises

Shares in Credit Suisse were sailing on Monday. The Swiss bank found favour among analysts at Deutsche Bank, Morgan Stanley and Citi. Deutsche Bank upgraded Credit Suisse to a “buy” rating, sending it shares up 3.32%.

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.

calamatta_cuschieri
Calamatta Cuschieri is one of Malta’s largest financial services firms. The company offe...