Market Commentary | All eyes on Apple

Global stocks climbed on Wednesday as a slew of weak US economic data increased speculation that the Federal Reserve will raise interest rates as early as this month. European markets ended a choppy session slightly higher, with investors assessing a larger than expected drop in German industrial production before the European Central Bank issues its next policy decision on Thursday. Meanwhile Wall Street took a turn lower after some choppy trade as investors braced for a product announcement by Apple.

The FTSE 100 managed to close in the green, registering a 0.2% gain after it had wandered in and out of negative territory throughout the session. Overall, recent U.K. economic data, reflecting the environment in the wake of the Brexit vote, have surpassed expectations. The pound on Tuesday rose above $1.34 for the first time since mid-July.

Concerns about Europe’s largest economy cropped up Wednesday as German industrial production dropped 1.5% in July, as manufacturing output declined. Economists polled by The Wall Street Journal had forecast a monthly fall of 0.3%. Germany’s DAX 30 held to a thin gain of 0.58% during Wednesday’s session.

Amongst individual movers, Sports Direct International tumbled 8.5% after the apparel retailer said it expects full year 2017 earnings to be in the region of £300 million. This figure raised some eyebrows amongst investors, especially when considering that the fiscal profit for 2016 was £381.4 million. Sports Direct is holdings its annual shareholders meeting on Wednesday. Sport Direct shares have lost about 46% year-to-date.

But shares of Ashtead Group bounced 3% higher after the equipment-rental company upgraded its fiscal 2017 expectations after recording first-quarter earnings growth.

Shares of Volkswagen were also trading higher, with the German car maker in advanced talks with a Chinese auto maker China Anhui Jianghuai Automobile, to produce electric cars in the country. Volkswagen shares added 1.26% on Wednesday.

Oil futures traded mostly higher on Wednesday, ahead of the latest weekly updates on U.S. petroleum supplies, with traders weighing the likelihood that major producers will reach a deal to curb output later this month. Prices started cruising toward $50 a barrel earlier this week, following the announcement that Saudi Arabia and Russia had agreed to cooperate to stabilize the oil market. But without a specific plan to cap output, future prices have struggled for direction amid skepticism over whether a formal deal would be forthcoming. Crude oil added 1.3% on Wednesday, to end the day at $45.40 per barrel.

All eyes were on Apple on Wednesday evening, as the tech giant rolled out its latest updated product. The iPhone 7 is set to include camera upgrades, a faster processor, longer battery life and a new water and dust-resistant design. Apple have also ditched headphone jacks to make room for other features, and the company showed off new headphones called AirPods that connect wirelessly to the new iPhones – but these will set you back $159! Shares of Apple traded 1% higher after the news.

This article was issued by Rebecca Naudi, Trader 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 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.