Markets roundup eyeing Central Banks | Calamatta Cuschieri

European markets finished lower on Monday as lower oil prices weighed on energy shares, with markets failing to find support in new economic growth and inflation data. Shares in France’s CAC 40 was down 0.73% leading the indexes, while London’s FTSE 100 was off 0.60% and the sinking retail sales in September led Germany’ s DAX lower by 0.29%.

Markets are also cautious eyeing some important rate decisions issued by several Central Banks during this week come at a time when bond markets appear to be starting to price in higher inflation. The Annual inflation in the euro area is expected to increase to 0.5% in October from the 0.4% recorded in the previous month. Services, food alcohol and tobacco contributed the most to the rising consumer prices.

Today, Bank of England governor Mark Carney said he will serve on additional year beyond the five-year term he committed when taking the post but will be two years short of the usual eight years governors serve. Following the pound's decline after the UK voted to leave the European Union, pro-Brexit campaigners urged Carney to step down before his current term expires due to his support of the country remaining in the EU. On Thursday, the Bank of England will feature the bank’s quarterly inflation report.

Energy prices continued to trade in the red, extending earlier losses after major oil producer not belonging to the Organisation of the Petroleum Exporting Countries (OPEC), failed to make any guarantees to freeze the crude output. The non-OPEC members stated they preferred to sort out their differences before agreeing to the production cap that is likely to draw the prices upwards. Tracking this the West Texas Intermediate December Future dropped 2.08% at one point with Brent Crude oil following course down 2.5%.

On Wall Street, the majority of the US Markets had a positive opening nearly one week ahead of the elections in the Unites States (8 November). Markets are also paying close attention to the Federal Reserve’s interest rate decision on Wednesday, although market participants see a probable interest rate rise in December. The Strong dollar, was mostly stimulated by these growing speculations of the near future rate hike and even holding the gold price at a steady price remaining at a three-week high.

Other news:

The Global provider of information technology Hexagon AB was in the red following news that their Chief Executive Ola Rollen is under investigation in Norway for insider trading from personal investment but not related to Hexagon. The allegations came in relation to the acquisition of 284,341 shares in Next Biometrics. Shares in the company were in the red by around 9%.

The UK based advertising Giant WPP was up by 4.10% after posting a third quarter revenue growth more than actually expected from markets. The company performed well in key markets, including Western Europe and North America. Amid this, the growth was lower when compared with the previous year’s quarter, which may reflect the first impact of the Brexit uncertainties.

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 Investments Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.