China downgraded, markets mixed | Calamatta Cuschieri

European markets were a mixed picture during Wednesday’s trading session, as investors digested the latest corporate news while keeping an eye on what was going on in the oil and central bank spheres. The day kicked off on a rather negative note, as Moody’s downgraded China’s credit rating for the first time in nearly 30 years – from A1 to Aa3. Moody’s cited concerns about the impact that rising levels of debt will have on the world’s second largest economy, which is a major buyer of industrial and precious metals. Moody’s action on China briefly rattled Asian markets.

Meanwhile, US stocks traded in positive territory on Wednesday, though trading was subdued ahead of minutes from the Federal Reserve Bank’s latest meeting, which could quell doubts about a June interest rate increase.

Travel shares fly higher

Looking at Europe, travel and leisure stocks had a good day on Wednesday, with TUI AG, EasyJet and Ryanair at the top of the benchmark. Shares of TUI were up 3.29% and shares of EasyJet gained 3.38% in London.

According to Reuters, Ryanair CEO Michael O’Leary said the company would reveal a “strong set of results” in its upcoming earnings, expected next week. This was music to the ears of investors and sent shares soaring 2.78%.

Retail mixed

Shares of department store operator Marks & Spencer rebounded to trade higher on Wednesday, after dipping at the open. Shares had been lower after the company said full-year profits fell compared to a year ago, blaming weaker sales for clothing and non-food items. But the company posted solid gains overall, sending shares up 1.27%.

Staying in the sector, shares of Next were trading in the red after the company’s stock had its “neutral” rating reissued by JPMorgan Chase. Shares were off 0.85%.

Meanwhile, home improvements retailer Kingfisher was trading lower after it reported a slip in sales in its first-quarter results. The company said this was due to weak sales in France and disruption caused by a renovation.

Autos struggle

Shares in Daimler AG fell on Wednesday, leading declines on the DAX after the German authorities raided the company’s Stuttgart headquarters and other sites to secure evidence in their investigation in possible diesel emissions fraud by the car maker. Shares were off 1.82%.

On a similar note, shares of Fiat were in the red with the car maker saying it was disappointed the US justice department filed a complaint against the company related to allegations it used software to cheat diesel emission tests.

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.