Market commentary: European markets close higher despite China’s negative outlook

European Markets closed higher on Monday, with the Stoxx Europe 600 Index adding 0.3 percent, Germany’s DAX 30 rising 0.6% and Frances CAC 40 trading marginally higher.

A restructuring of Deutsche Bank AG’s senior management ranks under new co-CEO John Cryan and positive earnings reports helped push European stocks to a two-month high.  The German lender rose 3.7 percent after undertaking the biggest management reshuffle in more than a decade and splitting up its investment bank.

Mining, oil and gas names were down after more negative data coming out of China showed the second largest economy expanded at the slowest pace since 2009, growth slowed to 6.9% in the third quarter. This is the first time since the financial crisis that the country’s gross domestic product has grown less than 7%.

Investors later this week will watch for any comments that European Central Bank President Mario Draghi may have about China and what impact its slowdown is having on the Eurozone economy.

In London stocks closed lower, with miners being the worst performers on FTSE 100. Shares of platinum producer Anglo American PLC finished 7.4% lower, bringing their year-to-date slide to 48%. Mining company, Fresnillo PLC gave up 3.3% and Glencore PLC closed down 5.2%.

Some positive news stemmed elsewhere on the FTSE 100 with ITV PLC shares finishing up 0.3%, paring off early weakness after the company agreed to acquire UTV Ltd, which owns the television assets of Northern Ireland’s UTV Media PLC for 100 million pounds in cash.

Shire PLC shares also closed higher with a gain of 2.6%, after the pharmaceutical company said the U.S. Food and Drug Administration has requested an additional clinical study in its new-drug application for lifitegrast, which is aimed at treating symptoms of dry eye disease. Lifitegrast is one of the medicines in development that Shire is counting on to meet a goal of boosting sales to $10 billion by 2020 from about $6 billion last year. The company said the FDA had requested another clinical study and data on product quality, a setback after the drug had won priority review status, shortening the review process to eight months from the standard 12 months.

In the U.S, stocks recovered opening losses and were on the verge of turning higher Monday, before commodity and energy stocks dragged down the benchmark. Morgan Stanley also weighed in on the index sliding 5.4% after the bank reported third-quarter earnings and revenue, missing analysts’ expectations

On a more positive note PayPal Holdings Inc. rose on Monday after Deutsche Bank reiterated its buy rating on the company's shares and raised the stock's price target to $44 from $42.

This article was issued by Andrew Cassar Torregiani, Trader/ Analyst 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 & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.