Markets retreat | Calamatta Cuschieri

European markets moved lower on Thursday as investors digested the latest batch of corporate earnings and reacted to strong gains in oil prices. Basic resources emerged the winner, trading higher as stocks got a lift by rising oil prices, and major gains from mining giants Fresnillo and Polymetal.

US stocks also traded in the red on Thursday as retail stocks fell sharply on the back of Macy’s weak quarterly results. The Nasdaq Composite retreated from record highs, as sentiment was dented following a tumble in shares of Snap inc. The parent of SnapChat reported a $2.2 billion loss in its first quarter after IPO.

Banks in the green

Italian banks were having a good session on Thursday. Shares in UniCredit climbed 3.67% after the lender swung to a first quarter profit of €907 million, topping analyst expectations as reduced loan losses under the guidance of new CEO, Jean Pierre Mustier, appeared to gather steam.

Meanwhile, Mediobanca picked up 1.27% after the Italian bank notched a 39% rise in profit for the first nine months of the year. These gains contributed to a healthy rise in the FTSE Italia All share Banks index, which pushed the benchmark to its highest level since March 2016.

But the broader Stoxx Europe 600 Bank Index closed the day in the red, after rising as much as 0.2%. French lender Credit Agricole said profit more than triples to €845 million in the first quarter, but its shares traded lower. Shares of German lender Deutsche Bank were in the red, falling 0.79%, and British heavyweights Lloyds and Barclays were both in negative territory.

Meanwhile, the Bank of England announced interest rates will remain unchanged at 0.25% on Thursday, as was widely expected.

BT, Macy's struggle

Europe’s telecoms sector struggled. Shares of BT were deep in the red on Thursday, on track for the biggest drop in two months. The telecommunications company reported a drop in quarterly pretax profit, and also announced it plans to cut 4,000 jobs. Shares fell 4.6%.

Elsewhere, shares of Macy’s were a drag on the market after tumbling 17%. Shares fell after the retailer reported a worse than expected slide in revenue for the first quarter, leaving investors uninspired.

It wasn’t all bad news though, as shares in Valeant Pharmaceuticals closed in positive territory following favorable developments in patent litigation over its drug Xifaxan. Shares were up 8.83%.

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.