Get ready for Q2 earnings season! | Calamatta Cuschieri

Global markets were mixed on Monday as investors reacted to robust economic growth data in China and monitored the second round of formal Brexit talks in Brussels.

In Europe, UK markets were in the green, while markets in France and Germany edged lower to close in the red. The FTSE rose, with all sectors gaining ground. Basic materials, health care and oil and gas groups led the way with gains on Monday, putting the index on track for a positive start to the week.

Elsewhere, Germany’s DAX 30 fell 0.33%, dragged down by the likes of Commerzbank, whose shares fell following a downgrade from ‘buy’ to ‘hold’. In France, the CAC 40 closed marginally lower at 0.1%.

American markets were little changed, with major indexes trading near record levels, as investors looked ahead to key quarterly results that will be released this week. Goldman Sachs, Bank of America, Microsoft, Qualcomm and eBay are just a few of the big names scheduled to release quarterly results shortly, with overall second quarter earnings expected to grow.

Leading the way

Basic resource stocks, with their heavy exposure to China, were the best performing sector. China reported stronger-than-expected economic growth data on Monday as the world’s second largest economy was supported by robust industrial output, retail sales, as well as exports. The Chinese economy grew 6.9% in the second quarter, year on year, to keep pace with the first quarter of the year.

In Europe, shares of engineering firm Weir Group soared to the top of the benchmark after the company said it expected its oil and gas units’ full year revenues to surpass analysts’ forecasts. Shares were up over 8% on the news.

British broadcaster ITV announced Carolyn McCall is set to become the company’s new chief executive on Monday. McCall, who had worked as EasyJet’s CEO for seven years, is due to assume her new role with the UK’s biggest free-to-air commercial broadcaster on January 8, 2018. ITV’s shares were almost 3% higher following the announcement and EasyJet’s shares were up 1%

Netflix earnings shine

Netflix adds 5.2 million subscribers as opposed to the 3.2 million forecast

Netflix, reporting second quarter earnings after the market closed on Monday, delivered a big surprise with a significant number of new subscribers for the quarter: 5.2 million as opposed to the 3.2 million forecast. The second quarter is typically weak for Netflix subscriber additions but the timing of releases such as House of Cards and Orange is the new Black have helped Netflix subscriber numbers come in above expectations.

Shares soared 10% after hours, trading well above the all-time intraday high of $166.87 a share.

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.