Markets roundup with Harvey and Apple | Calamatta Cuschieri

On Monday, European markets were on the downside following the appraisal of the Euro against the US dollar, which hit its highest level in more than two years

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Calamatta Cuschieri
29 August 2017, 10:05am
Energy shares were hit in the wake of refinery shutdowns prompted by Hurricane Harvey
Energy shares were hit in the wake of refinery shutdowns prompted by Hurricane Harvey
On Monday, European markets were on the downside following the appraisal of the Euro against the US dollar, which hit its highest level in more than two years. In view of this, shares of exporters across Europe were pushed lower, as the Euro currency gained ground after a speech by European Central Bank President Mario Draghi. Among big exporting companies shares in French, beauty product maker L’Oréal and German automakers BMW and Daimler AG were trading in the red.

The FTSE 100 was closed today due to the Summer Bank Holiday, while the German DAX fell 0.25% at the close, with Adidas and Deutsche Bank the worst performers. In France, the CAC 40 was down 0.43% to close the session in the red, weighed down by Vivendi and TechnipFMC.

Energy

Meanwhile, energy shares were hit in the wake of refinery shutdowns prompted by Hurricane Harvey. Exxon Mobil Corp, Baytown refinery, with a capability of processing 584,000 barrels of crude oil a day, has been shut down. The Stoxx Europe 600 Oil & Gas Index dropped as companies and investors are assessing the damages caused by the hurricane. Oil futures traded lower heading for a month’s low, due to Harvey which may cause an excess in crude supplies.

Gold

On the other side of the coin, Gold traded above the $1,300 per ounce, as the hurricane continues to dominate the news. The precious metal was also influenced by central bankers' comments made last week at Jackson Hole, as the ECB Mario Draghi decided not to comment on the recent strengthening of the Euro. At one point, Gold changed hands at $1,305.58 per ounce. Gold increased around 1.14% for the week.

Trump corner

US President Donald Trump has approved the sale of surplus military equipment to the police. The sale of military gear to local law enforcement was previously curtailed by the Obama administration, following a public concern over the use of armored vehicles to confront protestors. The decision will enable police to gain access to grenade launchers, firearms, and ammunition.

Meanwhile, Trump’s decision to prevent transgender people from joining the U.S military service led the way for a lawsuit.

Apple

Apple’s highly anticipated product announcement is almost due, scheduled for September 12th. The Cupertino-based company is expected to unveil two new iPhones along with the high-end iPhone8. Adding to this, the company will also announce a new 4K Apple TV that supports sharper content compared to current models and a new Apple watch.

The iPhone 8 is rumored to feature a display that takes up almost the entire front of the device and that uses OLED panels, which are brighter and more colourful than those in earlier versions. Other features could be the introduction of facial recognition through a 3D sensor instead of the fingerprint reader at the back of the device.


Disclaimer

This article was issued by Rodrick Duca, 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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