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Testing times ahead | Calamatta Cuschieri

Global markets struggled for direction on Tuesday, with geopolitics being surrounded by uncertainty

calamatta_cuschieri
Calamatta Cuschieri
5 April 2017, 9:27am
US President Donald Trump prepares to meet up with his Chinese counterpart, Xi Jinping, later on this week
US President Donald Trump prepares to meet up with his Chinese counterpart, Xi Jinping, later on this week
Global markets struggled for direction on Tuesday as US President Donald Trump prepares to meet up with his Chinese counterpart, Xi Jinping, later on this week. The two are set to meet in Florida for a summit with discussions set to focus on trade relations between the two countries and the handling of North Korea and its unpredictable leader Kim Jong Un.

Despite the challenges and uncertainties facing the United Kingdom in the wake of triggering Article 50 and start to negotiations on leaving the European Union, equities traded positively as the FTSE 100 registered a gain of around half a percent while the Pound lost ground against both the dollar and the euro.

In other news, South Africa’s President, Jacob Zuma, is facing an uphill battle following his decision to dismiss his finance minister and reshuffle his government’s cabinet. The country’s credit rating has been cut to junk status and the Rand, South Africa’s national currency, has taken a beating. The future certainly looks bleak for the African nation for the foreseeable future should Zuma continue on his current path.

On Wall Street, US stocks traded mostly lower, with Goldman Sachs and McDonalds contributing the most losses, as investors took a cautious approach on Tuesday.

Asos shares drop

Asos, the online clothing giant, has seen its stock price fall by more than 6% on the London Stock Exchange during Tuesday’s trading session, despite reporting better than expected revenues and increasing its full-years sales guidance for the second time this year. Investors seem to be ignoring these facts and are instead focusing on the company’s decrease in gross margin by 60 basis points (0.6%). This could be explained by the fact that the company has cut its prices in Europe and continues to offer free shipping to its customers. Nevertheless, Asos shares staged a rebound during afternoon trade, and closed the session off at a 0.15% loss.

Toshiba needs help

Toshiba, following the filing of chapter 11 of its US nuclear arm, Westinghouse, has shaved off 10% of its total value as it’s being reported that the Japanese firm is in need of financial assistance as it will be meeting lenders in order to counter the negative effect that one of its subsidiaries was facing bankruptcy. The bankruptcy of Westinghouse came in the wake of cost overruns and delays.

Tesla shares at an all-time high

Tesla shares have reached a record high during Monday’s trading session and has beaten Ford Motors to become the second largest automaker in terms of market value
Tesla shares have reached a record high during Monday’s trading session and has beaten Ford Motors to become the second largest automaker in terms of market value
On a positive note, Tesla shares have reached a record high during Monday’s trading session and has beaten Ford Motors to become the second largest automaker in terms of market value. Shares continued to build on Monday’s gains to trade higher during Tuesday’s session as the electric vehicle company has reported better than expected first quarter delivery figures. Tesla delivered a total of 25,000 vehicles in the first quarter which is 70% higher when compared to the same figure a year ago.

This article was issued by Simon Gauci Borda, 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.

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Calamatta Cuschieri is one of Malta’s largest financial services firms. The company offe...
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