Markets across Europe closed lower on Wednesday as investors focused on political uncertainties surrounding Italy's 2019 budget plan. European Union Budget Commissioner Gunther Oettinger denied claims that the EC already rejected Rome's final budget draft presented on Monday. Meanwhile, United Kingdom Prime Minister Theresa May was welcomed by European Commission president Jean-Claude Juncker prior to the EU summit in Brussels.
Rumours about a Brexit extension were also in the highlight, but were immediately denied by a spokesperson to the U.K Prime Minister. The spokesman said that the government wants to make a deal by the end of autumn, and is still confident that it will happen. He added that the government is working incredibly hard to make progress in Brexit talks as quickly as possible and to make sure there is time for all the necessary legislation.
The FTSE 100 closed 0.06% lower. British American Tobacco was the biggest winner, rising 3.38%, while Easyjet was the biggest laggard, dropping 4.96%. The CAC 40 ended the session 0.54% in the red as the automotive industry dragged the index down, with Peugeot plunging 4.62%. The German DAX was down 0.52% at the closing bell, Fresenius Medical Care plunged 16.50% after it reported lower-than-expected third quarter income.
Pfizer offering early retirement
Pfizer Inc., the pharmaceutical giant that employs more than 90,000 people, has sent out an email to its United States employees offering early retirement. Non-union workers are more likely to be laid off, while the total number of planned employee cuts was not mentioned in the memo.
"To achieve our full potential we will need to create a simpler and more efficient organization," the company said in the email.
Employees over 55 years old who have been with the company at least 10 years may be eligible for early retirement, according to the internal documents. The ones who decide to accept the early retirement offer can formally do so between October 16 and November 2, and they would leave before the end of the year, unless asked otherwise.
Oil
Crude prices continued to trade lower on Wednesday, extending losses from earlier in the session as investors digested worse-than-expected data released by the Energy Information Administration (EIA) earlier in the day. According to the report, United States crude oil inventories rose by 6.5 million barrels to 416.4 million barrels for the week ending October 12.
Meanwhile, investment incentives were also lower amid the ongoing scandal involving the disappearance and alleged murder of Saudi journalist Jamal Khashoggi. Market watchers remain cautious amid fears the political tensions over the incident could negatively affect the oil market.
Disclaimer: This article was issued by Rodrick Duca, trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are 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.