Markets heave sigh of relief | Calamatta Cuschieri

Global markets were higher on Wednesday as geopolitical tensions regarding North Korea eased, and as investors tracked a muted performance overnight on Wall Street. 

European markets were in the green, led by gains in basic resources and energy companies, as metal and oil prices rose. The FTSE 100 moved up 0.73%, aided by a slide in the pound after a weaker-than-expected reading on inflation. In France, the CAC 40 climbed 1.02% and, in Germany, the Dax 30 was up 0.95%.

US equities also traded higher on Wednesday, restoring the Dow above the psychologically important 22,000 mark after Federal Reserve minutes suggested that the central bank is wrestling with sluggish inflation, but eager to commence an unwind of its $4.5 trillion asset portfolio.

Automobiles in the spotlight

Fiat Chrysler’s shares had a good day, building on the 8.2% advance from Monday, following an Automotive News report that several Chinese auto makers are considering a bid for the Italian-American vehicle maker. Fiat shares didn’t trade on Tuesday since trading in Italy was closed for a holiday. However, shares picked up 2.92% on Wednesday, to trade at €10.92.

In other Fiat news on Wednesday, the car maker said it is joining a consortium led by BMW to develop self-driving technology. BMW shares rose 0.36% in Frankfurt.

Amazon takes a hit

US President Donald Trump once again unloaded on Amazon.com Inc, as he tweeted that the company is hurting other retailers and implying that it is killing industry jobs across America. Amazon is causing “great damage to tax paying retails”, Trump said in a Twitter post on Wednesday, causing shares in the online retailer to fall.

Staying in retail, it was a good day for Urban Outfitters. The retailer posted earnings that easily beat estimates, sending its shares soaring over 20% during the session.

Elsewhere, shares in Target were having a good day after the retailer reported an increase in same-store sales. The company also lifted its full-year guidance adjusted profit outlook. Its shares were up 2.92%.

Fed minutes in focus

Wednesday’s main event was the release of the minutes of the Federal Open Market Committee’s July meeting.

The minutes from the Fed’s meeting in July showed that most Fed officials wanted to wait until the next monetary meeting to unveil details on its planned unwinding of its $4.5 trillion in bond holdings, indicating an announcement is possible in September. The Fed also discussed the surprisingly low inflation readings, with few officials noting that the Fed could be patient before raising interest rates again.

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