Which way is up? | Calamatta Cuschieri

Global markets were once again mixed on Thursday, as traders digested how a Trump presidency will impact the markets in the future. Asian markets soared, with a weaker yen propelling Japanese stocks up, and completely erasing yesterday’s losses. European markets started the day higher, but were unable to hold onto the morning gains, and ended the day in the red. Wall Street was mixed, as investors are currently repositioning their portfolios in light of the presidential election.

In a choppy day of trading, the pan-European Stoxx 600 was nearly 1% higher at the open, but lost momentum to trade 0.26% lower by Thursday afternoon. Sectors were mixed, with financials and industrials leading the way with gains as investors appear to back that President-Elect Donald Trump could drive both growth and inflation.

Shares of Royal Bank of Scotland added 5.4%, Banca Popolare di Milano rose 5.8% and Deutsche Bank climbed 5.6%.

All major indexes struggled. The French CAC 40 and German Dax were 0.6% and 0.5% in negative territory, but it was the UK’s FTSE 100 that sank the most, as it closed 1.31% in the red. Wall Street opened higher on Thursday, with the Dow Jones hitting an all-time high, however the index has since retreated. The broader S&P 500 index was 0.18% down in mid-morning trade. 

Copper hits new highs

Copper prices jumped by the most in more than a year on Thursday, extending Wednesdays gains, as investors prepare for a possible boom in infrastructure projects under Trump’s presidency. Copper prices had begun their rise on Wednesday, after Trump reiterated his plan to embark on upgrading infrastructure in the country. Improvement of roads, airports and ports are among the potential projects in the near future. Copper futures for December leapt 3.39%.

Riding alongside copper prices were shares of copper producers. Companies such as Antofagasta soared 11%, adding to Wednesday’s rally of almost 9%. Glencore was another winner, after climbing over 4%, and BHP Billiton added a further 8%.

Individual movers

Shares of Siemens were trading in the green with the German industrial corporation posting a 20% rise in fourth-quarter net profit to €1.15 billion. This came on the back of growth at most of the companies industrial business divisions. Shares were up 4.5% on Thursday.

Elsewhere, shares of Walt Disney and Michael Kors were in the green as the companies prepared to release their results after the bell.

Engie shares fell 7.7% after the French power utility cut its profit outlook for this year, as revenue took a hit from weak natural gas and electricity prices.

Shares of ITV PLC closed 1.3% higher. The broadcaster recorded a 5% rise in sales to £2.16 billion, but warned that the advertising market is softening.

This article was issued by Rebecca Naudi, 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.