Markets drifted as investors digested a host of catalysts

(ARTICLE WRITTEN BY LINCOLN MICALLEF)

Markets attempted to stabilise due to North Korean war threats, central-bank policy to tailwinds for oil and the aftermath of the German election.

The European market struggled for direction in Tuesday’s trade, as traders evaluated the latest flare up in U.S.-North Korea tensions and as the euro declining the weakest in more than a month after Germany’s general election over the weekend.

U.K. stocks dropped for a second straight session on Tuesday, as the escalation in the war of words between the U.S. and North Korea fueled fears of a nuclear war and drove investors out of risky assets. The FTSE 100 index fell 0.3% on a 0.1% loss from Monday.

U.S. stocks pointed to a muted open, as the Dow industrials try to stabilise after three down sessions in a row. Investors are waiting for fresh readings on the housing market and consumer confidence, as well as speeches from Federal Reserve chief Janet Yellen and three other U.S. central bankers.

Alibaba

China e-commerce giant is to increase its stake in Cainiao Smart Logistics Network Ltd to 51 percent from 47 percent, taking an additional seat on the board. Alibaba will buy control of unprofitable delivery business Cainiao for $800 million. Apart from this project, Alibaba plans to spend billions of dollars to expand a shipping network that spans the world’s largest e-commerce market. Alibaba CEO stated that this investment demonstrates Alibaba’s commitment to building the most-efficient logistic network in China and around the world. On Tuesday, Alibaba said that $15 billion, which will be invested over five years to build a global logistics network, will be used to develop its data technology and improve its warehousing and delivery development.

Nestlé

Nestlé, plans to switch in or out of businesses with combined sales of almost $10 billion as CEO Mark Schneider focuses on coffee, bottled water and pet care to prioritise profitability over scale. Investors are looking for indication that the world’s largest packaged food company can improve its performance, as the food sector faces a challenge from smaller upstart brands and changing consumer tastes and habits. In order to attract investors, Mark Schneider held a conference on Tuesday to unveil his new strategy in which he stated that Nestlé is already trying to sell its chocolate business, the first major retreat from sugary snacks, as it embarks on its biggest revamp in at least a decade. He also stated that the company is trying to revamp its Gerber baby nutrition division in the U.S. and Yinlu Foods in China, however it will keep consumer healthcare as additional growth platform to complement food and beverages.