Market Commentary: Germany's trade surplus drops

European markets closed higher after Wednesdays trading session. The Stoxx 600 index climbed as much as 1.2 percent, however markets lost their steam after data emerged showing an increase in the U.S. crude stock piles.

Oil-related stocks climbed in early action, with shares staying higher even as oil gave up gains. Shares of Tullow Oil PLC closed 8.6% higher, Subsea 7 SA added 7.3% and Total SA climbed 2.2%.

Health-care shares fell the most among Stoxx 600 groups today. Roche Holding AG and Novartis AG, among stocks with the biggest weightings on the benchmark gauge, lost 2.4 percent or more.

In Germany, the DAX 30 managed to shake off the weak numbers and closed up 0.7%. However this morning more data is out showing a slump in German export numbers, this could be a sign that Europe’s largest economy is vulnerable to risks from weakening global trade.

Germany's trade surplus has now dropped to €15.3 billion from €25 billion in July.

Deutche bank will be the first in the spot light this morning after the banks CEO unveiled the firm’s biggest quarterly loss in at least a decade. This news may result in the company missing its first dividend since Germany’s postwar reconstruction. The investment bank expects to post a third quarter loss of 6 Billion Euros.

In London U.K. stocks finished higher for a sixth straight day on Wednesday, with miners leading the way up.

Shares of Anglo American PLC rose to the top of the benchmark, finishing up 10% after Morgan Stanley lifted the rating of the miner.

The investment bank also raised Rio Tinto PLC and BHP Billiton PLC to overweight bumping the shares up 7.5% and 4.6%, respectively.

The FTSE 100 ended up 0.2% giving the index its highest close since late August.

In the US markets, stocks closed higher on Wednesday as a rally in health-care stocks helped boost gains during a choppy session.

The S&P 500 gained 0.8%

And in single stock names, according to the Wall Street Journal, Dell Inc. is in talks with EMC Corp about a potential merger. EMC shares jumped during late trading. WSJ said that Dell, which founder and CEO Michael Dell took private two years ago, is seeking to buy all or part of the large data-storage company. EMC ended trading with a market cap of 50BN, meaning this could be the largest tech take over of its kind.

This article was issued by Paolo Zonno, 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.