Market commentary: European markets up on better than expected PMI data

In Europe markets paired earlier losses and closed marginally higher on Monday following better than expected data on factory activity in the Eurozone. The Stoxx 600 index was up less than half a percent, getting its first day in the green after three negative sessions.  This gives the market a positive start to the month after ending a record month in October as the index jumped 8%, its best monthly performance since 2009. 

Germanys DAX 30 climbed close to 1% after Germanys manufacturing PMI was raised. France didn’t fare as well but still closed 0.4% higher after PMI data was worse than expected.  The U.K. benchmark also ended the day marginally higher as weak Chinese factory data is still a drag on resource companies, even though the final U.K. manufacturing PMI for October was better than expected.

In single stock names, Ryanair Holdings PLC manged to jump over 3% following a solid earnings report. The budget airline announced that second-quarter net profit rose by more than 40% after a strong summer and low fuel prices. The company also stated that earnings for the full year should be at the top of the airline's projections.

Swedish appliance maker Electrolux AB dropped more than 5% after the U.S. government raised issues against the takeover of General Electric Co.’s home-appliance business. An antitrust settlement proposal submitted by Electrolux AG and General Electric Co. for a pending $3.3 billion deal has been rejected by authorities after they argued that it would be detrimental to competition and is not in the best interest of consumers.

In the U.S, stocks closed higher on Monday, with energy, health-care and financial stocks leading solid gains. The S&P 500 jumped over 1%.  Leading the markets were shares in Tesla Motors Inc. which gained on Monday ahead of the electric-car maker’s quarterly financial results scheduled for Tuesday afternoon. Investors are expected to look for additional details on mass production of its Model X, as well as price information. Shares of Tesla are up 4.2% to for the year.

Also in the spotlight is Activision Blizzard Inc. that late Monday announced that it is acquiring King Digital Entertainment PLC for close to $6 billion. This move would combine the two giants of the videogame industry. The deal gives Activision, a powerhouse in console videogames with hit franchises such as “Call of Duty” and “World of Warcraft,” and a starting block in the fast-growing business of mobile games.

King shot to fame in 2012 with its hit “Candy Crush Saga,” helping to position casual and inexpensive smartphone apps as a viable alternative to pricier games played on TVs and personal computers.

Names to look out for today due to Earnings scheduled For November 3rd include Kellogg company, Tesla Motors, Groupon and Zynga.

This article was issued by Andrew Cassar Torregiani, Trader/Analyst 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.