Market commentary: European stocks turn higher after a two-day decline

European stocks fell for a second straight day on Tuesday, as fears about a slowing global economy continued to drag on sentiment.

The pan-European Stoxx Europe 600 index dropped just under 1 percent, closing at its lowest level since early January. Germany’s DAX 30 dropped just under 0.5 percent and France’s CAC 40 index dropped 0.3%.

European data on Tuesday highlighted a separate worry facing the European Central Bank, with Spanish inflation slumping to negative 1.2% in September, missing forecasts of a negative 0.5% reading. In Germany, inflation also missed forecasts, raising concerns that the Euro zone is slipping into deflation.

Weak inflation readings are a major concern for the European Central Bank, which in January announced the quantitative-easing program to stimulate growth. With no increase in consumer prices the effectiveness of this programme is being brought into question.

The U.K.’s FTSE 100 fell on Tuesday, as persistent fears about slowing global economic growth coming out of China and emerging markets continued to weigh on investor confidence.

Glencore PLC jumped 17% in London after analysts at Citigroup suggested the mining group should go private if it can’t regain confidence from investors. The company also enjoyed a surge of almost 8 percent on the back of an increase in metal prices this morning.

J Sainsbury Plc, Britain’s third-biggest supermarket company, said full-year profit will surpass expectations on improved sales. Full-year pretax profit will exceed analysists’ expectations. The stock rose as much as 9.5 percent.

In the US the S&P 500 Index halted a five-day decline, on the way to its worst quarter since 2011. The index rose 0.1 percent, and is down 4.5 percent in September on the way to back-to-back monthly declines. Equities swung between gains and losses as health-care companies rebounded, while biotechnology shares erased an early rally and Apple Inc. dragged technology companies lower.

Elon Musk, CEO and architect of Tesla Motors launched the all-electric Model X SUV at the company’s Fremont, California factory at 8 p.m Tuesday night. The Model X is more than a year behind schedule, with Musk saying repeatedly that the company wanted to get every aspect of the SUV right before large-scale production would start. Buyers reserving their Model X now can expect to get the car in early 2016, according to Tesla’s website.

This morning European Markets rebounded from the two day slide. Autos and commodity stocks opened higher. Peugeot Citroen led the Auto sector jumping almost 6 percent.

Disclaimer:

This article was issued by Andrew Cassar Torreggiani, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt .The information, views and opinions provided in this article are 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 & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.