Financials lead markets higher | Calamatta Cuschieri

Global markets were in the green on Tuesday, despite the terrible news in Europe early in the day. European markets clawed out of the red as financials led the way with gains. Italian banks were among the biggest gainers after news the country’s government is preparing a bailout package for struggling banks. This upbeat tone spread to Wall Street, with US stocks also posting gains on Tuesday as investors remained unfazed by geopolitical tensions while the Dow Jones industrial average kept marching toward the 20,000 mark.

Banks in the green

Financial services and banking stocks were among the best performers during Tuesday’s session. Italian lenders were in focus following the news that the Italian government is trying to get approval to inject €20 billion to rescue its troubled banks.

Shares of Banca Popolare rose 3.82% and Banca Popolare di Milano climber 3.67%. Italy’s FTSE MIB index rose 1.09% outperforming other major European stock benchmarks.

Bank of America and Goldman Sachs were also leading the way with gains on the S&P. Both banks posted gains of around 1% on Tuesday.

Deal movers

French media group Vivendi announced it shall continue to work towards increasing its stake in Italia Mediaset. Shares in Mediaset soared 23% during Tuesdays’ session.

In other deal developments, shares of the London Stock Exchange were up 0.72% as the exchange operator announced it is in talks to sell its LCH SA clearing business to Euronext. Shares in Euronext rose 2.5% on the news.

Elsewhere, shares on Lloyds Banking group were trading higher after the company said it will buying MBNA Ltd, the UK credit-card business of Bank of America. The deal, worth around £1.9 billion is part of its plan to expand its consumer-finance business. Shares were up 2.5% on Tuesday.

News after the bell

FedEx shares fell 3% in extended trade Tuesday after the company reported earnings that missed Wall Street expectations. FedEx reported adjusted earnings of $2.80 a share on revenue of $14.93 billion. Analysts expected the company to post earnings of $2.90 a share on $14.92 billion in revenue, according to a Thomson Reuters consensus estimate. The company's full-year adjusted earnings outlook for 2017 remained unchanged at between $11.85 a share and $12.35 per share.

Elsewhere, shares of Nike rose more than 5% in after-hours trading after the world's largest athletic clothing firm beat Wall Street's earnings and revenue expectations. Earnings per share came in at 50 cents, adjusted, topping the Thomson Reuters consensus that called for a profit of 43 cents a share. The company's sales were fueled by strength across global markets, in both footwear and apparel, calming some nerves that the brand is losing its footing. Nike's revenue rose 6% during the fiscal second quarter to $8.18 billion. Analysts had predicted Nike would pull in $8.09 billion in revenue, according to the consensus estimate.

GoPro shares dipped nearly 1% in extended trading on Tuesday after it announced a hike in its restructuring costs. The action camera maker will spend an extra $7 million on restructuring, raising the total cost to $33 million from $24 million. Most of the costs will be recognized in the fourth quarter, GoPro said. GoPro's flagship holiday product, the Karma drone, was plagued by delays and a recall this year.

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.