European markets dropped during the day of trading. The FTSEurofirst 300 index dropped one percent to reach 1,088.43 points. On Tuesday, the index had boasted of gains of 0.4 percent. The French CAC-40 dropped while the British FTSE 100 and German DAX also retreated.
On the London Metal Exchange, three-month copper dropped 0.5 percent to a level of $7,646 per ton. At the same time, gold advanced 0.27 percent to $1,724.51 an ounce. Gold is still lower than the three-week high it hit on Friday of $1,738.
Germany managed to sell 4.3 billion euros in two-year bonds this week. The bonds are offered with zero percent yields due to high demand for a stable investment. The triple-A rated nation has a highly liquid debt market and is viewed by many as a secure investment. In Italy, borrowing costs also dropped as the government sought to sell off 3.5 billion in three-year bonds. This sale is expected to complete the funding needed by the Italian government for the remainder of the year.
Surprisingly, Abercrombie & Fitch reported a 50 percent increase in net income for the third quarter. This advance was unexpected by investors since the clothing retailer has struggled to gain ground in US markets over the last few years. Rising international sales fed the advance. Stock in Abercrombie & Fitch rose by $9.53 to $40.69 per share. Abercrombie & Fitch’s competitor, American Eagle, also saw its shares advance by 1.5 percent to $19.93. American Eagle has seen its stock rise by more than 30 percent for the year to date.
On Wednesday, lock-up stock owned by former Facebook employees officially expired. Stock in the company rose by $2.21 during the session to reach $22.06. A leading chipmaker, Advanced Micro Devices, saw its share prices fall by 5.3 percent or 11 cents. It reached a level of $1.98 after the company denied reports that it was debating a sale. In March, stock in Advanced Micro Devices hit a one-year high of $8.35. As consumers switch from PCs to new devices, the stock has lost roughly 76 percent of its value.
Cisco Systems shares rose by $0.96 to reach $17.85. At the end of the day on Tuesday, Cisco Systems announces that its earnings increased by 18 percent in the third quarter. Shares in Mosaic dropped by $1.31 to reach $49.95 following announcements of weakened international demand. Mosaic is a company that mines potash. This key ingredient for fertilizer is expected to have lowered sales for the fourth quarter.