US companies’ profits have exceeded forecasts by 4.6%, the European ones by 2% and Japanese firms by 6.7%. This has fuelled a strong rally in the stock markets in just a few weeks. But is there room for the markets to rise further?
The spectacular results of the four major US technology firms drove the Nasdaq index to a new record high as it closed the week at 6.701, a rise of 35% since the highs of the technology bubble at the start of the century which was a psychological level many thought would never be recovered.
Abengoa posted net profit of 4,733 million euros in the nine months to September 2017, compared with losses of 5.413 billion a year earlier, due to the impact of the company’s financial restructuring on its balance sheet.
This Monday Colonial has launched a bid for all the shares in the socimi Axiare which it does not already own at a price of 18,50 euros/share. This means valuing the whole of the company at 1.462 billion euros. The transaction will allow Colonial to become a leader in the offices sector in Europe.
Yesterday, Saudi Aramco signed the contract awarding Técnicas Reunidas the construction of two gas projects promoted by Aramco. One day later, the Spanish company has confirmed its profit warning and announced that profit to September fell 45% to 55,5 million euros from a year earlier.
The Crown Prince and de-facto ruler of the Saudi Arabia, Mohammed bin Salman, (MBS) launched an anti-corruption drive to safeguard the reform and modernization of the Saudi economy. Oil meanwhile looks to have broken out to the upside, which is very much a function of Brent Crude rather than West Texas Intermediate. The gap down started to open in August with Hurricane Harvey, not now with Saudi developments.
Droughts are not new in Spain, but current year is the third driest year of all time, behind 1981 and 2005. This situation is hitting the hydroelectric capacity of both Spanish utilities Iberdrola and Endesa. In fact, hydroelectric production in Spain fell almost 58% as reservoirs are at 37% capacity when they are normally at 60% during this time of the year.
Indra posted net profit of 85 million euros in the first nine months of 2017, up 76% from the 48 million euros registered a year earlier. The number of contracts obtained grew 13%, thanks to the incorporation of Tecnocom and organic growth in Indra’s IT business (4%)
Last Friday afternoon, Fluidra revealed its merger project with its US-based rival Zodiac, world leader in Premium products for swimming pools. The new company, which will keep the name Fluidra and will continue to trade on the Spanish market, will have a presence in 46 countries and a workforce of 5,500.