Markets struggle | Calamatta Cuschieri

Global markets turned lower during Wednesday’s trading session, as oil prices fell further into a bear market

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Calamatta Cuschieri
22 June 2017, 10:11am
Oil was once again front and centre for both European bourses and markets overseas on Wednesday
Oil was once again front and centre for both European bourses and markets overseas on Wednesday
Global markets turned lower during Wednesday’s trading session, as oil prices fell further into a bear market. Crude oil prices, which entered bear market territory after falling 20% on Tuesday, crept higher after Iran’s oil minister Bijan Zanganeh said members of OPEC are considering further oil output cuts.

European stocks were in the red, as they continued where they left off in the previous session. Financial services and technology stocks led declines, with energy shares also a drag. In other news, UK investors are still waiting to hear the government’s agenda as Prime Minister Theresa May has yet to secure support for her hobbled Conservative Party.

US stocks put in a mixed performance on Wednesday as investors focused on volatile oil prices, which stabilised after dropping to their lowest levels in more than seven months.

Oil back in focus

Oil was once again front and centre for both European bourses and markets overseas on Wednesday. Prices hovered near multi-month lows after sliding into a bear market during Tuesday’s session. This drop in prices was a drag on oil producers. Royal Dutch Shell was down 1.18% and BP lost 0.68% on Wednesday. Crude oil was trading at $43.45 a barrel.

Worries are still lingering about oversupply in the global oil market after the Organisation of Petroleum Exporting Countries and other major oil producers in May extended production limits into the first quarter of 2018. A recent increase in supply by Libya was a factor. Meanwhile, comments from Iran’s oil minister about the possibility of deepening production cuts appeared to help crude oil futures by afternoon trade.

Stocks to watch

Shares of Red Hat were trading well into positive territory after the open-source software company posted earnings that came in ahead of forecasts. Its shares were up 10% on this news.

Shares of Advanced Micro Devices were also soaring after the tech giant launched a new generation of chips for servers that drive computing in data centres. These chips are seen as a direct challenge to Intel. Shares of Advanced Micro Devices picked up 7%, while shares of Intel dropped 1.5%.

Stocks in Whitbread were also in the green, as the parent company of Costa Coffee and the Premier Inn hotels chain posted a rise in first-quarter comparable sales. Its shares rose 3.53% on Wednesday.

Uber needs a new CEO

Travis Kalanick stepped down as chief executive of Uber, the ride-hailing service that he helped found in 2009 and build into a transportation colossus, after a shareholder revolt made it untenable for him to stay on at the company.

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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