It’s over | Calamatta Cuschieri

With another month coming to a close, global stocks remain on course for a fifth straight month of gains, as the reflation trade triggered by Donald Trump’s election proves its resilience. Stronger growth from the world’s biggest economy to developing nations has helped underpin the rally, even amid doubts about the American President’s ability to enact pro-growth policies. Furthermore, Federal Reserve officials continue to make the case for two more rate hikes in 2017.

Markets showed little reaction to the UK’s formal triggering of Brexit on Wednesday as the move had been broadly telegraphed. Still, this divorce will redefine the country’s relationship with its largest trading partner and end decades of deepening political integration on the continent. The Pound was lower, with this weakness helping curb losses from the FTSE 100, which is made up largely of companies that generate the bulk of their earnings overseas.

Deutsche Boerse, LSE merger rejected

The attempted deal to create Europe’s biggest stock exchange came to a grinding halt on Wednesday. The proposed merger between the Deutsche Boerse and the London Stock Exchange has been formally rejected by the European Union antitrust regulators. The EU said this merger would have created a de facto monopoly in the markets for clearing fixed income instruments.

Shares in both companies traded higher on the news. Deutsche Boerse shares were up 1.91% while shares in the London Stock Exchange Group were up 2.22%.

Individual movers

Travel and leisure stocks were under pressure on Wednesday. The chief marketing officer of low-cost Irish airline Ryanair told CNBC that he expects it will be unable to operate flights between the UK and the EU if a new airline deal is not achieved with the two-year Brexit negotiation period. Its shares were down 2% on the news.

Staying in the sector, shares in TUI were in the red after the travel operator reaffirmed its fiscal 2017 guidance, but said macroeconomic and geopolitical challenges had affected certain destinations.

There was good news for Vertex Pharmaceuticals, whose shares surged a day after the company’s drug for cystic fibrosis met end points in two late-stage clinical studies.

Meanwhile, Amazon’s stock extended gains with its shares trading at a record high on Wednesday.

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 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.