By Sara Sjolin, MarketWatch
What are strategists saying?
“Although we have to brace ourselves for significant noise, including clashes between Rome and Brussels, a truly disruptive crisis [in Italy] is probably not on the cards for now,” said Holger Schmieding, chief economist at Berenberg, in a note.
“However, if highly-indebted Italy loosens the fiscal reins and reverses some recent reforms such as the ‘Fornero’ pension reform, the country would become vulnerable to a debt crisis if and when the next cyclical recession exposes the country’s weaknesses,” he added.
Ferrari NV /zigman2/quotes/200586103/delayed IT:RACE -0.42% lost 0.9% after the car maker named Antonio Picca Piccon as new chief financial officer, effective July 30. He’ll take over from Alessandro Gili, who is leaving on May 31.
Glencore PLC /zigman2/quotes/201400686/delayed UK:GLEN +1.19% /zigman2/quotes/209462106/composite GLCNF +1.90% fell 4.4% after Bloomberg reported that the miner may face a formal bribery investigation over its business conduct in Congo.
“There has been much positivity in luxury post strong results across the space; therefore we see the higher-than-expected inventory buybacks, slight miss on underlying EBIT and lower-than-expected dividend as being slightly disappointing today,” said analysts at UBS in a note.
Shares of AstraZeneca PLC /zigman2/quotes/203048482/delayed UK:AZN -0.60% /zigman2/quotes/200304487/composite AZN +0.92% dropped 2% after the pharma giant reported core earnings that missed forecasts. Core operating profit—the company’s preferred measure, which strips out one-time gains and impairments—fell to $896 million from $1.67 billion a year ago.
Ubisoft Entertainment SA /zigman2/quotes/200990331/delayed FR:UBI -0.35% jumped 4.5% after the French videogame maker reported full-year revenue ahead of forecasts.