Markets with Tech and merger | Calamatta Cuschieri

Market participants took the main British equity index marginally above the flat line on Monday despite the slight increase in the value of the pound against the euro. The FTSE 100 was held just one point in positive territory 7,524.45, as best performers GKN and Micro Focus gained 5.05% and 2.11%, respectively.

The DAX finished 0.09% up at 13,003.14 points in Frankfurt, after flirting with an all-time high of 13,094.76. Linde was at the top of the chart with a surge of 2.29%, while Infineon fared second best, rising 1.2%. The CAC 40 closed 0.27% at 5,386.81 after during the session it topped the 5,400 level, which has been briefly held in May for the first time early 2008. STMicroelectronics led the way, jumping 4.33%.

The advance in main stock indexes in the Eurozone and the joint currency's decline indicate dovish sentiment ahead of this week's meeting of the European Central Bank. The euro was 0.17% lower against the US Dollar and 0.22% in the red when compared to the British Pound. The pound added just 0.08% in relation to the greenback.

Gold

Precious metals traded mostly in the red with gold remaining steady at $1,280 mark on strong US dollar following Japanese Prime Minister Shinzo Abe's victory in the parliamentary election on Sunday. Abe's coalition, which includes his Liberal Democratic Party and junior coalition partner Komeito, won 311 seats in the country's 465-seat parliament. The outcome of Japanese election drove the greenback higher against the yen while it also positively affected trade in the stock markets. This, in turn, reduced investment incentives in safe-haven assets such as the yellow metal.

Halliburton

The US Oilfield services provider Halliburton posted its quarterly results, contrasting with the slide in international markets. The company announced the completion of more oil wells in North America, which makes 60 percent of its overall sales. This helped the company to post a profit of 42 cents a share in the third quarter.

T-Mobile – Sprint Merger

The breakthrough in the potential merger of Deutsche Telekom AG's unit in the United States (T-Mobile) with the Overland Park, Kansas–based telecommunications subsidiary of Softbank Group Corp. (Sprint) is pending due diligence. Reports indicated that the process is aimed to be wrapped up by the middle of the next month at the latest.

The apparent slight delay, which would put the German owners in the main seat, is the result of checks concerning off-balance units of the Japanese online industry giant's business. T-Mobile is the third-largest mobile operator in the US, followed by Sprint. Their size signals substantial efforts may be required to win regulatory approval.

If Sprint and T-Mobile are given the green light, the combination would be just about 100 million subscribers.

Apple

The iPhone giant is expected to begin selling its ultra-luxury iPhone X later this week. Analysts however, have been noting components shortages and production bottlenecks are likely going to make it very difficult for consumers to purchase the $999 smartphone soon. Apple is reportedly meeting with officials at outsourcing manufacturer Foxconn to discuss the issue. Today the company’s shares resisted the NASDAQ slide, edging higher.

Disclaimer:

This article was issued by Rodrick Duca, 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.