Markets mixed on Monday | Calamatta Cuschieri

The week got off to a mixed start on Monday, with major bourses swaying in and out of negative territory during the session, amid increased geopolitical risks and as investors digested the US missile attack in Syria last week.

European markets started the day in the green, but were unable to hold onto those gains, and found themselves under pressure by afternoon trade. All major sectors closing marginally higher, despite falling indexes. Oil prices were up roughly 1% after a shutdown in a pipeline at Libya’s biggest oilfield.

Across the pond, US markets traded slightly higher benefiting from solid gains in oil which was supporting energy shares. Investors also looked ahead to the start of earnings season which could shed some light on any recent improvement in investor sentiment compared with the recent improvements in economic activity.

Barclays in the spotlight

Barclays have announced that its Chief Executive, Jes Stanley is being investigated by two UK regulators on behalf of his individual conduct when attempting to identify a whistleblower at the bank last year.

The Financial Conduct Authority (FCA) as well as the Prudential Conduct Authority (PRA) have opened an investigation into both Stanley and Barclays actions when pursuing the author of a letter believed to have originated from a whistleblower.

Shares in Barclays opened in the red on Monday, but later reversed loss to close in positive territory.

Over in the US, financials were among the weakest sectors of the day, with Bank of America down 0.6% while Wells Fargo & Co lost 0.55%.

Mergers in the pipeline

German drug-maker Stada Arzneimittel announced it would support a joint takeover bid from private equity firms Cinven Group and Bain Capital. The two companies valued Stada at around €4.11 billion, and as a result, shares jumped 11%.

Shares in Swift Transportation were also sailing in positive territory following news the trucking company plans a merger with Knight Transportation. The deal will be worth around $6 billion, and sent shares in both swift and Knight up 24% and 14% respectively.

JD Sports full year profit soars

JD Sports Fashion PLC reported a healthy 56% jump in fiscal 2017 adjusted pretax profit, and commented on how it is well positioned for further profitable growth, despite inflationary pressures arising from the UK's decision to leave the European Union.

The company reported an increase in like-for-like store sales of 10%. They also declared a final dividend of 1.30 pence per share, giving a total payout of 1.55 pence for the fiscal year. Shares of JD Sports soared on this news on Tuesday morning.

Disclaimer:

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.