Markets at full steam ahead | Calamatta Cuschieri

U.S. stocks rose toward all-time highs on Tuesday’s trading amid the latest batch of corporate results, while Treasury yields turned lower and the dollar fluctuated as data gave mixed signals on the strength of American economic growth

calamatta_cuschieri
Calamatta Cuschieri
2 August 2017, 11:30am
Jan Cobb Photography Ltd.— Getty Images
Jan Cobb Photography Ltd.— Getty Images
U.S. stocks rose toward all-time highs on Tuesday’s trading amid the latest batch of corporate results, while Treasury yields turned lower and the dollar fluctuated as data gave mixed signals on the strength of American economic growth. The Dow Jones Industrial Average stepped ever closer to a psychological milestone at 22,000.

The Stoxx Europe 600 SXXP tacked on 0.6% to close at 380.26. Energy and industrial stocks led advancers, and the health care sector was the only laggard. U.K. blue-chip stocks advanced with BP PLC and Rolls-Royce Holdings PLC each powering higher after respective earnings reports from the oil major and the engine manufacturer.

Asian markets continued to rise on Tuesday with stocks starting August widely higher as investors again looked to be largely ignoring a missile firing by North Korea. Korea led the way in Asia, where the Kospi stock benchmark SEU had been logging record highs before a pause capped by Friday’s 1.7% slide, its biggest of 2017. The index rebounded 0.9%, with heavyweight Samsung recovering 0.7% after recent weakness.

Fraud Investigation

UK tobacco firm British American Tobacco (BAT) says it is under official investigation by the Serious Fraud Office (SFO) over allegations it paid bribes in East Africa. Paul Hopkins, who worked for BAT, a British company, in Kenya for 13 years, told Panorama he had begun paying bribes after being told it was the cost of doing business in Africa. The payments were aimed at influencing laws surrounding the use of tobacco in the region.

BAT said that it had been investigating the claims through external legal advisers and it had been co-operating with the SFO. The firm said it also intended to co-operate with this formal investigation. Shares in BAT were down almost 4% at the start of trading before recovering to a gain of 2%.

OPEC Weighs on Oil

Oil slid about 3 percent from a two-month high on Tuesday as major world oil producers kept pumping out supply, worrying investors that several weeks of steady gains had pushed the rally too far, too fast. OPEC production rose in July, despite a deal to cut output. That prompted selling after U.S. oil futures had risen more than 16 percent since late June.

U.S. inventory reports due on Tuesday and Wednesday are expected to show crude stocks fell by 2.9 million barrels last week, the fifth straight week of declines. On the demand side, forecasters including the International Energy Agency have been raising their estimates. Oil company BP said Tuesday it sees demand growing by 1.4 to 1.5 million barrels per day. Brent crude, the international benchmark, was down $1.55 a barrel, or 2.9 percent, to $51.18. U.S. crude was down $1.53, or 3.1 percent, to $48.64 a barrel.

Disclaimer:

This article was issued by Peter Petrov, Junior 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...