Markets continue the negative momentum, ending with a twist | Calamatta Cuschieri

European and US markets, as well as some good news from Allergan Plc

European markets closed in the red on Tuesday, as the global sell-off continued, but US markets ending sharply higher at the end of the session
European markets closed in the red on Tuesday, as the global sell-off continued, but US markets ending sharply higher at the end of the session

European markets closed in the red on Tuesday, as the global sell-off continued for the third day in a row on Wall Street, making a U-Turn at the end of the session. Meanwhile, ECB's Weidmann stressed the Eurozone topped the growth pace of other developed economies, but warned of the danger of shocks that can pose "an endurance test." Moreover, investors digested quarterly reports from BP, Toyota and BNP Paribas.

The FTSE 100 dropped 2.42% at the close, with Asset Management Company Schroders and Scottish Mortgage Investment Trust finishing the day 5.06% and 4.91% in the red, respectively. The DAX closed 2.45% lower, with the financial sector leading the losses. The CAC 40 finished the session 2.40% in the red, with TechnipFMC being the biggest loser, falling 4.34%, followed by Kering, which ended the session 3.78% lower.

On Wall Street the U.S Markets closed sharply higher following a volatile session driven by expectations of rising interest rates and computer-based trading. In a stark contrast to the two previous sessions, the Dow Jones Industrial Average managed to regain roughly half of what it lost yesterday as it rose 567 points with the remaining major indices closing with gains as well.

The Dow Jones Industrial Average finished the day 2.33% in the green; DowDuPont, Home Depot, Chevron and Apple led the gains. The S&P 500 closed 1.74% higher with Trip Advisor surging 14.65%, followed by Micron rising 11.37%. The Nasdaq 100 soared 2.62% at the close as Skyworks Solutions and Nvidia saw their shares go up 10.25% and 5.56% respectively.

Good news from Allergan

American pharmaceutical giant Allergan Plc reported its revenue for the last quarter of the fiscal year 2017 stood at $4.33 billion, beating market expectations of $4.28 billion. The figure was 12% year on year. The company's adjusted earnings per share for the same three-month period were $1.55, also above Wall Street expectations of $4.74 per share.

Meanwhile, the pharma firm said its net loss for the last quarter of the year was $90.5 million, improving from a loss of $900 million reported in the same three months of 2016. Allergan's outlook for the next quarter included an estimated revenue between $3.5 and $3.6 billion, and earnings around $3.3 per shares. For the whole of 2018, the company's guidance cited a revenue between $15 billion and $15.3 billion, slightly below market expectations.

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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