You shall not pass | Calamatta Cuschieri

European markets were in the red on Monday, with traders unimpressed by the latest policy decisions by President Donald Trump regarding a travel ban on refugees coming from seven Muslim-majority countries.

Wall Street was also posting hefty losses. The Dow and S&P 500 were on track to register their worst daily loss since mid October, with investors grappling with this weekend’s policy decisions. The Dow fell around 200 points, dropping below the 20,000 mark, with Boeing and Goldman Sachs contributing most to the losses. Energy and financials led the declines on Wall Street.

There are also plenty on economic data to look forward to in the coming week, including a meeting by the Federal Reserve beginning on Tuesday.

Trump rally on pause

Although stocks reacted favourably to Trump’s election back in November, with many indexes posting a series of record highs, the first week of his administration was market by confusion and controversy. Tensions have been high between the US and Mexico, while a public outcry that occurred over a travel ban this past weekend sowed further doubts among some analysts that lack of equality volatility could continue. Over the weekend, Trump signed an executive order banning citizens of Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen from entering the US.

Alphabet’s Google, Microsoft and Apple were among technology companies whose leaders criticised Trump’s immigration ban. Their shares all traded lower on Monday. A number of travel and leisure shares were lower in European trade. Shares of Air France and Consolidated Airlines Group lost ground, and InterContinental Hotels Group was also in the red.

Vodafone up, oil down

Vodafone Group was trading in positive territory as the mobile services company said it is in talks to merge its Indian unit with India’s Idea Cellular Ltd to create the largest mobile operator on the sub-continent. Shares in Idea Cellular also rallied on the news.

Volkswagen Group soared past Toyota Motor as the world’s largest automaker in 2016 despite its emissions scandal, capturing the crown for the first time in a bitter-sweet accomplishment.

Banks were also posting losses on Monday. Lloyds Bank was in the spotlight after the UK government cut its stake in the UK’s largest retail bank to 3.57 billion shares – or about 4.998% of its issued share capital. Lloyds shares fell 1.50% on Monday.

In oil markets, prices were dragged lower as investors grew increasingly concerned that rising production in the US would offset output cuts pledged by OPEC and other producers. Crude oil was trading at $52.51 a barrel, having sunk 1.25% during Monday’s session.

This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is 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.