Market commentary: UK stocks finish lower due to oil prices

European stocks closed lower on Tuesday on the back of the decline in oil prices,  with the Stoxx Europe 600 losing 1% and the oil-and-gas and basic-materials sectors leading the way lower. In the U.K, stocks also finished lower due to lower oil prices and negative readings on economic activity with preliminary GDP growth coming out below expectations.

As for single stock names, on the Italian market Poste Italiane closed down 3.6% in its trading debut, which came after the Italian government last week completed the sale of a minority stake in the postal service.

U.K. regulators gave Anheuser-Busch InBev NV an extension that will last one week to make a formal takeover offer for SABMiller Plc as the Brewery giants come closer to making a deal.  The deadline for has been extended until Nov. 4, the companies said in a statement Wednesday.

AB InBev agreed to pay £44 a share in cash for a majority of SABMiller stock earlier this month after weeks of haggling over the price. If a deal is made between the brewers the take-over would surpass the largest deal made this year which was that of Royal Dutch Shell Plc’s $70 billion purchase of BG Group Plc, according to data compiled by Bloomberg. SABMiller rose 19 pence to 3,935 pence in early London trading.

U.S. stocks closed slightly lower on Tuesday as investors remained cautious amid weak economic data and mixed earnings results. However it was not all doom and gloom as Apple Inc. said after markets close that it will have another record holiday, fueled by enduring demand for the iPhone. The California-based company said sales in the quarter ending in December will be around $77.5 billion, topping last year’s record.

Chief Executive Officer Tim Cook attributed the forecast to customers upgrading to the latest iPhone models, converts switching over from Android handsets and continued growth in China.

Relating to earnings reports, Coach Inc. gained 4.4% after delivering stronger-than-anticipated quarterly profit and Alibaba Group Holding Ltd also advanced after its earnings report, jumping 4.1%.

Acquisition activity in the U.S included the take-over by Walgreens Boots Alliance Inc of Rite Aid Corp. for $9.42 billion in cash in a transaction to further expand the company’s role in the distribution of medications in the U.S.

The transaction would combine the second- and third-largest drugstore chains in the U.S., with a total of about 12,800 locations, helping Walgreens vault past market leader CVS Health Corp.  Shares in both companies however fell due to speculation that the acquisition may break anti-trust measures.

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