European Stocks End With Gains as Miners, Oil Giants Rally

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On December 04, 2018, European stocks ended with gains as miners, oil giants rallied. The MSCI Europe index closed up 0.7 percent at 277.85 points on Wednesday as copper producers and oil majors rallied. 

The pan-European index had fallen to a two-week low of 272.82 points during the session as investors took profits amid a selloff in Asian stocks. 

However, a weak dollar and positive sentiment from Wall Street lifted European indices higher on the day.

DailyFX offered this insight: “The single largest percentage gainer on the MSCI Europe Index was Eurasia Mining, which rose by 7.9 percent to close at 16.59 euros. The stock has been corrected in recent days, and it is now testing a trend line that had previously offered support.”

From 24/7 Wall St: “There are no major economic reports scheduled for release today in the United States. With trade talks between the U.S. and China entering a critical period and oil production in Angola reportedly disrupted, investors will rely on company financials for direction.”

Hiccups continue at Amazon’s Indian unit – The Hindu Business Line

Amazon India head Amit Agarwal resigns – The Economic Times’TNIE’

JD.com buys stake in logistics firm Xpressbees for $30M – Deal Street Asia

“The move will help JD expand its reach amid growing competition from Alibaba-backed Paytm Mall and Amazon’s fashion unit Myntra, among others.”

American Airlines reports higher Q3 revenue but offers bleak guidance for 2019 – MarketWatch

“American Airlines Group Inc reported a 3.1% rise in revenue for the October-December period, while analysts had expected an increase of 4.3%, according to FactSet.”

“Boeing Co announced plans on Wednesday to raise $14 billion via debt sale as it works to generate cash amid one of the worst periods for its business jet division in recent memory.”

We Work contemplates going public – The Wall Street Journal

The company is a provider of shared workspaces and a competitor to Regus PLC, IWG plc, and other providers. It has been growing rapidly but is spending heavily on expansion. A public offering could provide it with greater access to capital.

“Tencent sales beat forecasts as global user base swells – Reuters

China’s Tencent Holdings Ltd reported a better-than-expected 63% jump in revenue for the December quarter on Wednesday, boosted by robust growth in its gaming and online ads businesses.”

“Shares of Ocado Group Plc hit a new all-time high after the online grocer reported a rise in Christmas sales and said it was on track to meet the demand for next-day deliveries.”

“SoftBank Group Corp priced its initial public offering of shares in SoftBank Vision Fund at $93. It will raise more than $93 billion, making it one of the biggest IPOs of all time.”

“U.S. oil production is expected to rise by more than previously thought in 2019, offsetting the impact of lower prices on shale output, according to a closely watched forecast published Wednesday.”

“Pernod Ricard SA said third-quarter revenue rose 4%, helped by higher sales volume across its global markets and its acquisition of smaller rival SABMiller Plc’s spirits business.”

“Germany’s Bayer AG said Wednesday third-quarter sales rose 6% on higher demand for its agricultural and consumer products, sending the shares to an all-time high in early trading.”

“Shares of Kering SA rose in early Wednesday trading after the luxury goods maker forecast full-year sales growth that will outpace market expectations.”

“Towers Watson & Co.’s 4Q profit fell 6.6% as its legal bills more than doubled, but revenue was better than expected and the brokerage affirmed its 2019 guidance.”

“Starbucks Corp quarterly revenue fell short of Wall Street expectations as fewer customers visited the world’s largest coffee chain, but its results were bolstered by higher sales in China and a surge in online transactions.”

TheStreet offers two commentaries: “Starbucks’ Margin Problem Isn’t Going Away, But Here’s The Good News” and “Starbucks’ Dividend Is Too Good To Pass Up”.

About one-third of U.S. adults are taking prescription drugs with depression, opioids or antipsychotics, according to the Consumer Reports National Research Center’s annual Health Survey released on Wednesday.”

“Wynn Macau Ltd said revenue for December jumped 34% from a year ago, lifted by a record month in the holiday period.”

“China’s Xiaomi Corp reported a better-than-expected 66% jump in revenue for the fourth quarter, boosted by sales of its phones and smart home devices.”

“Eurofirst 300 stocks index closes up 0.3%; Europe STOXX 600 up 1.4% – MarketWatch

“Stocks in Europe mostly rose Wednesday, with the benchmark Euro Stoxx 50 index closing up more than 1%, buoyed by an overnight rise on Wall Street.

“AstraZeneca Plc said fourth-quarter revenue rose 18% on higher sales of its lung-cancer drug Tagrisso and heart-related treatments, sending the company’s shares to an all-time high.”

“Italian Prime Minister Giuseppe Conte has resigned after losing support from his own party over a standoff with regional authorities in the financially troubled northeast.”

“Shares of Verizon Communications Inc fell 3.2% premarket Wednesday after Deutsche Bank analyst Matthew Niknam downgraded the stock to hold from buy, saying valuation is ahead of organic growth.”

“As many as 99 million Americans are putting off medical care due to high costs, according to a report released Wednesday by The Commonwealth Fund nonpartisan think tank. That number has increased 20% since 2016 when 76 million adults went without needed health care because of costs, the report said.”

“Rite Aid Corp.’s 4Q loss was bigger than expected as sales declined at both its retail and pharmacy divisions, while the company cut more store locations. Its fiscal 2019 EPS guidance also fell short of Street expectations.” 

“As many as 99 million Americans are putting off medical care due to high costs, according to a report released Wednesday by The Commonwealth Fund nonpartisan think tank. That number has increased 20% since 2016 when 76 million adults went without needed health care because of costs, the report said.”

“Rite Aid Corp.’s 4Q loss was bigger than expected as sales declined at both its retail and pharmacy divisions, while the company cut more store locations. It’s fiscal 2019 EPS guidance also fell short of Street expectations.”

“CBS Corp.’s 4Q earnings rose 23% on higher revenue from its cable networks and streaming services, sending the media company’s shares to an all-time high in early trading.”

TheStreet offers two commentaries: “What Investors Are Missing About CBS’ Stellar Results” and “CBS Corp. Is A Cheaper Netflix Inc.”

European stocks ended with gains as miners rallied and the oil giants jumped. The pan-European STOXX 600 index closed up 1% at 384 points, a two-week high, led by mining shares such as Anglo American (AAL) which rose 3%. 

Oil majors including Royal Dutch Shell (RDSa), Total SA (TOT)and BP Plc all saw their share prices rise by more than 2%, while U.S. shale producer Continental Resources Inc’s. stock gained 5%. In London, the FTSE 100 was also higher by 0.8% to 7173 points amid strong trading in banking stocks Barclays PLC BARC LN (+2%) and HSBC Holdings plc HSBA LN (-1%). 

European stocks pared some gains after the release of minutes from the Federal Reserve’s July meeting which did not give any indication that a near-term interest rate rise was likely. 

The minutes also showed that the Fed officials saw no strong case for raising rates in September and believed it may be possible to suspend its rate hike plans if inflation continued to be below target. 

The euro traded 0.25% lower at $1.1182 against the dollar after hitting an 11-day low of $1.1175 earlier in the day, while German 10-year bonds yield fell to 0.37%, lower than many other economic peers including Japan and the U.S., as investors favored safe havens over riskier assets.

What happened to the stock markets?! You can’t just ignore one of the largest economies in Europe and say that there is no effect on US stocks without acknowledging that this has a dramatic impact on Americans. 

That’s like saying your brother doesn’t care about his decisions affecting you because you’re not blood-related – you are family regardless. 

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