Global Markets Trade Strong as Oil Recovers
Global markets registered strong start for the week with oil prices recovering and Italian banks supporting European indices. Italian authorities said that they are ready to spend 17 billion Euros to deal with closure of two big banks in Italy. In Italy, Intesa Sanpaolo SpA jumped 3.5% and UniCredit SpA gained 2.3%, supporting Italian markets.
Activist investor Daniel Loeb's Third Point LLC hedge fund has invested $3.5 billion for a sizable stake in Nestle SA. The news led to 4 percent increase in Nestle stock and other beverage stocks registered smart gains.
Oil prices have been declining over the last two weeks. Finally, oil has witnessed a rebound and investors expect range-bound movement in oil for the next two weeks.
Indian Prime Minister Narendra Modi will be meeting the U.S. President Donald Trump today. This will be the first face-to-face meeting between Modi and Trump. Trump has raised the issue of H1B visas many times in the past and Indian information technology sector is concerned about protectionism. Indian companies offer services worth billions of dollars to the U.S. companies and mainly depend on H1B visas for hiring talent from India.
Royal Bank of Scotland has announced its plan to cut 443 jobs in the United Kingdom. Most of these jobs will be shifted to India, a spokesperson for RBS said. Last year, RBS shifted 400 jobs to India and 300 of them were in investment banking division.
French authorities have charged eight people planning to attack far-right politicians. Among eight men charged by the police, three are minors.
Japanese voters will vote today to decide the next government in Japan after nearly five years of power in Shinzo Abe’s control.
European markets closed strong on Friday as technology and financial services stocks helped market sentiment. European stocks traded lower earlier during the week due to political crisis in Spain due to Catalonia referendum.
Domino's Pizza has acquired Hallo Pizza, the largest independent pizza chain in Germany. With acquisition of Hallo Pizza, Domino’s has become the largest pizza chain in Germany with more than 370 stores across the country.
The People’s Party (ÖVP) has won the parliamentary elections and 31-year-old leader Sebastian Kurz would be the youngest national leader in Europe. Kurz will be having a tough task of dealing with European leadership.
IBM is using blockchain for improving speed and security for cross-border transactions. The solution offered by IBM is focused on banking sector.