Super Thursday | Calamatta Cuschieri

Global markets swayed on Thursday as investors were in for a handful of potentially market moving events, including an election in the UK, an ECB decision and the testimony of the fired FBI Director James Comey.

In Europe, markets turned lower as investors awaited for results of the closely watched parliamentary election. The FTSE 100 gave up early gains to trade 0.23% lower as financial, basic material and utility shares were higher, but consumer related and industrial shares were in the red. UK stocks were little changed in afternoon trade after the European Central Bank left interest rates unchanged at 0%, but removed language from its policy statement indicating rates could go lower in the future.

Over on Wall Street, stocks notched meagre gains Thursday, with the Nasdaq closing at a record after former FBI Director James Comey’s appearance in front of the US Senate Intelligence Committee concluded without any significant revelations.

ECB leaves rates unchanged, financials higher

Banks were among the best performers as the financial sector breathed a sigh of relief at the ECB’s decision to hold rates at 0%. Santander shares were up after the Spanish Bank announced it is buying the troubled Banco Popular. In London, the likes of Lloyds, HSBC and Royal Bank of Scotland were in the green.

But telecoms were lower on Thursday, with Vodafone down 4%.

Yahoo!, Alibaba in the green

Shares of Yahoo! soared on Thursday after news that up to 1,000 lay-offs are expected at the combined Yahoo and AOL companies set to be bought by Verizon Communications. Shares were up 6.43%

Likewise, shares of Alibaba were also trading firmly higher after the Chinese e-commerce giant said revenues are expected to grow between 45% and 49% in 2018. Shares jumped 11% on the news.

UK election ends in hung parliament

Prime Minister Theresa May had called a snap election in an attempt to boost her parliamentary presence and have a stronger say in Brussels, but following yesterday’s election, her leadership is currently being questioned. The early results for the UK election are in, and with the bulk of seats declared, no party had gained a clear majority, with the UK now facing a hung parliament.

The ruling Conservative Party stands to lose its parliamentary majority, potentially triggering another political earthquake in the UK and fuelling lots of uncertainty about the country’s future Brexit negotiations. There are 650 seats in total, and 326 are required for a party to secure a parliamentary majority, meaning the country now faces further political negotiations.

A hung parliament - a situation in which multiple parties hammer out a coalition government – arises when neither party secures the 326 seats needed for a majority.

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.