European and Asian markets open up in the red | Calamatta Cuschieri

A rebound in global equities on Friday did not continue at the start of the new week, with markets in Asia and Europe dropping whilst the US market is yet to open

Italy submit their draft budget to European powers in Brussels
Italy submit their draft budget to European powers in Brussels

Markets round-Up

A rebound in global equities on Friday did not continue at the start of the new week, with markets in Asia and Europe dropping whilst the US market is yet to open. The Asia Dow index fell by -1.18% to $3228.81 while the FTSE 100 fell by -0.16% to £6995.91. Asian stocks have suffered following a weekend of warnings on global economic fragility at an annual IMF gathering. In Europe, industrial good makers and travel companies were amongst the biggest losers.

The pound slipped as a Brexit deal is still uncertain with just days to go until the deadline day.  A surprise Sunday visit to Brussels by U.K. Brexit secretary Dominic Raab failed to break the deadlock. Oil prices climbed among rising tensions between the U.S. and Saudi Arabia over a missing journalist, which has the potential to effect global oil supply should disputes continue.

Italians putting up a fight

By midnight today, authorities within the European Union will finally get their first proper look at a draft of Italy’s populist budget. After weeks of controversy, from conflicting messages from Rome to early warnings that spending plans would breach EU rules, the European Commission will start reviewing Italy’s budget. The populist administration is keen to not just deliver on coalition agreements but also to show their electorate that they can win against the eurocrats in Brussels ahead of European Parliament elections in May.

The week ahead

Earnings season moves into high gear and economic data returns to the fore. Key macro events for the week include UK consumer price index (CPI), retail sales and unemployment, plus US retail sales and Federal Reserve (Fed) minutes. Also look out for further progress on Brexit negotiation.

Earnings are numerous on both sides of the pond, including more banks in the US and Netflix, and full-year numbers from ASOS and Bellway, and a host of other trading statements.

US retailer Sears files for bankruptcy

Sears, which was once a well-recognized brand in US shopping malls has filed for bankruptcy. The company has suffered, along with many other traditional retailers, from rising online competition from firms such as Amazon. Sears has 90,000 employees and not too long ago owned over three thousand stores with many of them now closed or on the sale market as it tries to recover from a debt load of over $5bn. The last blow came after it reportedly could not meet a $134m repayment that was due on Monday.

Local news – Housing proposals

A white paper on housing is set to be released with the 2018 annual budget on the 22nd of October. The white paper will propose ways on how those earning below €20,000 could possibly enter the property market, as rising prices put more pressure on average earners. The white paper is expected to review how a contract would impose a reasonable minimum rental period.

 

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 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.

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