What may move markets this week? | Calamatta Cuschieri

Friday’s breather

European stock markets finished Friday's session with gains after the Organization of the Petroleum Exporting Countries (OPEC) agreed to commit to 100% output compliance, resulting in a probable supply increase of around 1 million barrels per day. Meanwhile, United States President Donald Trump threatened the European Union with imposing a 20% tariff on cars, which caused stocks of European automakers to drop. A new report on economic activity in the EU showed a faster pace of growth in June, although it is still far behind 2017 levels.

The FTSE 100 rose 1.75% at the end of the trading day. Glencore Plc jumped 4.36%. The DAX increased 0.38%. Bayer AG was up 2.54%. The CAC 40 was 1.22% higher at the closing bell and TechnipFMC Plc soared 5.47% after signing a cooperation agreement with OxyVinyls.

Tesla in the red

On Friday,  Tesla Inc was one of the worst performing stocks on the Nasdaq 100, dropping 4% at one point and leading the index about half a percentage point lower after a whistleblower claimed that Elon Musk's company is trying to silence him as Tesla increased security measures at its Gigafactory. Meanwhile, reports have emerged that the company is looking to decrease the operations of its solar panel subsidiary, which Musk came to own after paying his cousins out over $2.5 billion in a deal for SolarCity.

The firm lost 3.65% in the stockmarket at one point as its shares went for $335.18. Tesla stocks were previously on a daily low of $333.33, declining to June 11 levels.

This week – what may move markets?

Some U.S officials are trying to restart talks with China to avoid a trade war before U.S. tariffs on Chinese products take effect on July 6. The officials are seeking before $34 billion in Chinese products are hit with tariffs rather than trigger a trade war between the world’s two largest economies.

The U.S. is to release final figures on first-quarter economic growth on Thursday. It is expected to confirm that the economy expanded at a relatively-healthy 2.2% annual rate in the first three months of 2018, unchanged from a preliminary estimate. It grew by 2.9% in the fourth quarter of last year.

The Office of National Statistics in the United Kingdom is to produce a third estimate on UK first-quarter economic growth on Friday. The report is forecast to confirm the economy grew a paltry 0.1% in the January-to-March period. On a year-over-year basis, the economy is forecast to grow by just 1.2%, unchanged from an initial estimate.

The Eurozone will publish its flash inflation figures also on Friday. The consensus forecast is that the report will show consumer prices rose 2.0%, quicker than the 1.9% gain seen in May, propelled by higher energy costs. Perhaps more significantly, however, the core figure, without volatile energy and food prices, is seen inching down to 1.0%, from 1.1% a month earlier. The European Central Bank targets inflation of close to but just below 2% for the euro zone as a whole. Germany, France, Italy and Spain will produce their own CPI reports throughout the week.

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 are 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.