European markets were closed during Monday’s trading session due to the Easter and bank holidays, but markets were kept busy with news coming out of Ankara that the referendum was marginally won by the Yes campaign. This now means that the Turkish president will now be granted executive powers and the Turkish political system will now change from a parliamentary system to a presidential system.
Due to European markets being closed, focus shifted on to the American side of the Atlantic on Monday as earnings season is currently underway with many firms reporting their financial results. U.S. Vice President, Mike Pence, visited the Demilitarized Zone between North and South Korea as part of his Asian tour. Pence’s visit comes as the North Korean regime has increased its rhetoric and continued with the advancement of its nuclear program. Despite this concern, Wall Street commenced trading on a positive note as the opening bell was rung and ended the day twenty points higher from the previous close.
JC Penney Shares Rise Higher
JC Penney’s share price took a hit during Monday’s trading as the American department store reported that it was postponing the planned liquidation of 138 of its stores. The company had previously reported that it was closing the stores in February as it was undergoing a cost cutting programme. Following this statement, sales had initially increased which then prompted the company to postpone its decision to close down the stores until at least July 31st.
Wells Fargo’s Profits Fall as Scandal Takes its Toll
Shares in the American retail bank Wells Fargo, rose even though the bank is still trying to repair the damage done by the bogus accounts scandal. Well Fargo’s net income fell by 1% when compared to the same period last year with revenues also decreasing by 1% as they came in at $22bn. Ongoing investigations into the scandal have revealed that the bank’s top executives knew about the scandal a year before the news broke out.Investigations have revealed that the scandal was brought about by the aggressive targets placed on the bank’s employees.
JP Morgan Chase Posts Solid Results
The American investment bank JP Morgan Chase, posted a 17% rise in net income during the first quarter of 2017 despite the fact that their retail banking unit showed signs of slowing down. The major contributor to the bank’s bottom line was the investment banking unit which also reported a 17% rise in revenues to $9.5bn. The bank might have to thank the Trump administration for the increase in revenues as the President himself has mentioned that interest rates should be increased, taxes should be lowered and lighter regulation should be implemented, as these are allfactors that play well into the hands of JP Morgan Chase.
Disclaimer:
This article was issued by Simon Gauci Borda, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is 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.