Global markets in bull run | Calamatta Cuschieri

Shares of miners and oil giants were posting some of the biggest gains in Europe during Monday’s trading session, pushing up the Stoxx Europe 600 index and setting it on track to close in positive territory for the first time in five sessions. Banks moved broadly higher, as last week’s comments from European Central Bank president Mario Draghi and Bank of England governor Mark Carney lingered in investors’ minds.

The Dow Jones Industrial Average hit a record high in late morning trading on Monday as energy and bank stocks gained, but a fall in tech stocks dragged down the Nasdaq. Goldman Sachs and Chevron gave the biggest boost to the Dow, while JPMorgan and Exxon helped lift the broader S&P 500 index.

Mining companies advanced after a private gauge of China’s factory activity rebounded in June to show an expansion, indicating an improvement in the country’s manufacturing sector. China is a major user of natural resources, so any growth indications from there tend to boost the mining sector. A long-awaited scheme enabling foreign investors to buy and sell Chinese bonds has been launched. The Bond Connect programme is Beijing's latest attempt to open up its financial markets and attract foreign capital.

Oil back in the lead

Oil extended the longest run of gains this year as U.S. drillers targeting crude, cut the number of active rigs for the first time in 24 weeks, snapping the longest stretch of gains in at least three decades.

"A surprise fall in US production in April and oil rigs last week may ease concerns that US crude production is ramping up too aggressively," Giovanni Staunovo, an analyst at UBS Group AG, wrote in a research note. "OPEC compliance and lower US oil inventories could prompt higher oil prices in the coming weeks."

Crude oil prices closed roughly at $47 a barrel on Monday.

Tesla’s car for the people

Tesla's new Model 3 car - starting to sell off at $35,000

Shares in electric car maker Tesla have risen after founder Elon Musk said its new Model 3 car would be ready by Friday, two weeks ahead of schedule. The Model 3 is Tesla's attempt to break into the mass market for car drivers with the most affordable electric vehicle baring the Tesla logo yet.

The basic model will start at $35,000 (approx. €30,800), nearly half the price of Tesla's current cheapest car and will rival similar products from competitors General Motors and Ford. Musk said the five-seater had passed all of its regulatory tests and the first car is expected to roll off the production line on Friday.

Shares of Tesla started the day in positive territory, rising to $371.13, but took a turn south to close off lower at $352.62.

Disclaimer:

This article was issued by Peter Petrov, 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.