US

US indices followed European markets into positive territory.  The closely followed S&P500 Index ended its trading session by adding just below 2% to end at 1941.28 whilst the Dow Jones Industrial Average added 1.31% to close at 16614.81.  The Nasdaq recorded the largest gains in percentage terms for the day's trading.  The index added 2.4% to reach 4419.48. This positive session continued to add to the indices' rebound after the large sell-off; extending the four day rally to more than 4%; possibly leading to the S&P's biggest rally in 2014.  The Nasdaq 100 registered its best day since January 2013.  Gold was also on the increase as the precious metal added 0.8% reaching a five week high.  Positivity is resulting from the good earnings reports being published by numerous companies as well as increasing speculation that the Fed will come to market with further stimulus if growth slows.  On a more positive note, sales of previously owned US homes have increased to the highest level in a year throughout September.  Meanwhile, volatility, as measured by the Chicago Board through its Volatility Index (VIX), slid by 37% over the last four days. 

Europe

European market indices ended yesterday's trading session deep in positive territory as the Euro Stoxx 50 rose by 2.19% to end trading at 2991.46.  These gains were outdone by the gains seen in Spain by the IBEX 35.  The Spanish index added 2.39% to close off its session at 10,152.10.  The German DAX followed closely adding just under 2% to overall share prices; the index closed at 8886.96, whilst the FTSE 100 registered the smallest gains of 1.68% to end the day at 6372.33.  The gains experienced find their roots in the positive earnings which are being published as we enter the earnings season, with US results affecting European markets and European companies returning the favour.  There is also speculation however that the ECB may come into the market with more aid.  This comes on the back of the recent sell-off witnessed in the past weeks which wiped off more than $4 trillion from the value of equities worldwide as the global economy is perceived to be slowing down.  This speculation may be the reason for the slide in German bunds, as investors may have exited the asset class, adding more exposure to equity markets in the hope that more ECB help will materialise, pushing markets higher.      

Investors' speculation may happen as expected since the ECB was already seen purchasing Italian covered bonds as it came to the market for a second day under its asset purchasing program. 

Company News

Apple

The tech company publishes its results for the quarter July-September which beat analysts' expectations.  It was reported that 39 million iPhones were sold throughout the quarter; an increase of 16% when compared to the same quarter of 2013.  Average selling prices were also higher; increasing by 4%.  The positive results were also met the by sales of the MAC which boosted revenue by 18% on an annual basis; a considerable increase when compared to the PC industry as a whole.  It was not all positive however, as iPad sales were lower; with revenue dropping 14% when compared to the same period last year.  Share price movements were also affected by the repurchasing of shares by the company which bought back $17 billion worth of stock. 

Yahoo! Inc

The search engine has reported revenues which have exceeded the street's expectations.  Sales which exclude the revenues shared with partner websites, stood at $1.09billion for the quarter ending September; an increase of 1.5% when compared to the same quarter of 2013.  These positive results couldn't come at a better time for Yahoo!'s CEO Marissa Mayer and she faces continuous pressure by the company's activist investor Starboard Value LP which is questioning the leadership and calling for a breakup of the company. 

Coca-Cola Co

The world's largest beverage maker saw its share price shed 3.8% as results published for the quarter came in below analysts' expectations. 

Total

Total's CEO Christophe De Margerie tragically passed away yesterday when his airplane hit a snowplow on the runway in Moscow.  De Margerie was return home from a summit in Russia when his jet crashed into the snowplow while taking off in poor visibility.  The company's board will be meeting as soon as possible to ensure continuity.  The head of refining within the company, Patrick Pouyanne, is being named as a possible candidate to step into the CEO position.  Phillip Boisseau, marketing head of the company is also a consideration together with CFO Patrick de la Chevardiere.

Swedbank

Sweden's largest mortgage lender, Swedbank, beat analysts' expectations as it presented its results for the quarter ending September.  Shares of the lender were 3.3% in positive territory amid these results. 

This article was issued by Calamatta Cuschieri, visit www.cc.com.mt for more information.