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.
Following an unanticipated upturn in economic activity in September, the eurozone economy is widely expected to be on track for the best quarter since 2015.
Elon Musk-led electric carmaker Tesla Motors has confirmed that it will discontinue its cheapest version of its Model S e-car, the rear-wheel-drive S60, on coming Sunday.
Motorola’s parent firm Lenovo recently announced the launch of the Moto G5S and G5S Plus smartphones in several markets. The company will shortly share its plan for worldwide launch.
Luxury vehicle maker Volvo has just introduced the 2018 XC40, the company’s latest SUV that looks forward to compete with the Porsche Macan or Range Rover Evoque.
European Commission President Jean-Claude Juncker’s proposal to expand Eurozone by bringing more countries into it has triggered controversy, mainly in Germany, where Chancellor Angela Merkel is seeking re-election.
Wall Street soared to record highs on Friday, thanks to robust trading in telecommunication shares as well as bouncing back of technology shares after a couple of days of declines.