French election positively impacts markets | Calamatta Cuschieri

European markets all closed positively on Monday following the outcome of the French Presidential election as Emmanuel Macron and Marine Le Pen emerged as the two frontrunners. The French market, CAC40, was up almost 4%, while the German markets and the UK markets were up 3.1% and 1.93% respectively. Yields on French government bonds also eased during Monday’s session as Macron is predicted to be running Europe’s second largest economy after current French President Francois Hollande leaves office. The Euro also surged against the dollar following the results of Sunday’s election as the currency rose 1.3% during the Monday trading session.

American markets also traded in the green at the open of Monday’s session as the S&P 500, an index tracking the largest five hundred companies in the US, rose by 1%. On Monday, American markets were preoccupied with President Donald Trump’s telephone calls with Shinzo Abe, the Japanese Prime Minister, and Xi Jinping, the Chinese Premier, over the North Korean crisis. Analysts suggest that Trump’s call was precautionary in nature as suspicion grows that the North Korean regime might conduct a nuclear test as Tuesday marks the 85th anniversary of the founding of the Korean People’s Army.

American markets were preoccupied with President Donald Trump’s telephone calls with Shinzo Abe, the Japanese Prime Minister, and Xi Jinping, the Chinese Premier, over the North Korean crisis

PPG bids for Akzo Nobel

PPG, the US paint maker, has tabled its third and final offer to buy Akzo Nobel, its Dutch rival, for €24.6 billion. The offers consists of €61.50 in cash and 0.357 shares of PPG’s common stock. The figure also includes a dividend payment that Akzo Nobel’s shareholders would be due should the company remain independent. The latest offer values Akzo Nobel at €96.70 per share or a total equity value of €24.6 billion.

The previous value by PPG was that of €90 per share which included a dividend payment, cash of €57.50 and 0.331 share of PPG common stock. Akzo Nobel had declined the two previous offers by PPG as they deemed the offers as undervaluing the company. Following news of the latest offer, Akzo Nobel’s shares, which trade on the Amsterdam Stock Exchange, were up 4.7%.

Hasbro beats estimates

Hasbro, the maker of the infamous board game Monopoly, posted better than expected quarterly results

On Monday, Hasbro, the maker of the infamous board game Monopoly, posted better than expected quarterly results as sales growth in the group’s gaming business helped to offset declines in partner branded toys like the Star Wars merchandise. Hasbro’s earnings rose by 41% year over year to $68.6 million as revenues climbed 2% to $849.7 million. Earnings per share were that of 43 cents, when Wall Street expected the figure to come out at 38 cents per share. Hasbro’s rival, Mattel, posted a decline of 14% as it missed quarterly expectations. Hasbro’s stock price was in the green during Monday’s session as it climbed by 5.91% while Mattel was down by more than half a percent.

Disclaimer

This article was issued by Simon Gauci Borda, 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.