Earnings season upon us | Calamatta Cuschieri

Global markets were once again mixed on Wednesday despite investor concerns over a drumbeat of geopolitical news that has fuelled the buying of safe haven assets, such as gold.

European markets logged their first day of gains in three sessions, with shares of carmakers among the best performers of the day thanks to strong earnings data. On the contrary, shares in supermarket shares were struggling in the wake of an update from grocery heavyweight Tesco plc.

US markets were in the red as investors braced themselves for the start of the earnings season. Financials were among the worst decliners, as US Treasury yields fell. In recent days, the trading mood has been dented by heightened geopolitical tensions. US President Donald Trump has been pressing China to act on threats coming out of North Korea, saying the US will take unilateral action if Beijing doesn’t.

Carmakers driven higher

Autos were one of the best performing sectors on Wednesday on strong earnings data. Shares in Daimler rose 1.3% after the company announced pre-tax profits leapt 87% in the first three months of the year, outrunning market expectations.

Likewise, shares in BMW were sailing in positive territory as the company said first-quarter group sales rose 5.3% year-over-year. Its shares traded 1.36% higher on Wednesday.

Shares in Volkswagen were also in positive territory after reporting that brand sales rose 2.5% worldwide this year.

BlackBerry win big, Tesco slump

BlackBerry announced on Wednesday that it had won $814.9 million in a contract dispute with Qualcomm that was in arbitration. The companies agreed to go to arbitration last April in a dispute on whether Qualcomm’s agreement to cap certain royalties applied to payments made by BlackBerry under a licence agreement between the two.

BlackBerry shares jumped 15.5% during Wednesday’s session, while shares in Qualcomm dropped 2.93%.

Britain’s biggest retailer, Tesco, beat forecasts for full-year profits as its recovery appeared to gather momentum. However, shares were in negative territory on Wednesday, slipping to the bottom of the benchmark as details of a regulatory fine that dented profits was clearly not taken in good light. Shares lost 5.73%, making it their worst session since July, 2016.

Shares in other supermarkets were also having a difficult day. WM Morrisons lost 1.74% and J Sainsbury shed 2.68%.

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.