North Korea freaks markets | Calamatta Cuschieri

Global stocks fell, while gold and the yen climbed as geopolitical tensions flared again, with U.S. President Donald Trump weighing new economic sanctions that could target China after a nuclear test Sunday by North Korea. The dollar dropped for a third day. The Stoxx Europe 600 Index sank 0.5%.

U.K. stocks lost ground, falling alongside markets throughout Europe and Asia after North Korea’s test. The FTSE 100 index moved down 0.4% to end at 7,411.47. Top advancers within the index included Fresnillo PLC and Randgold Resources Ltd., rising 2.9% and 2%, respectively, as gold leapt nearly 1% and traded near a 1-year high.

China Bans New Coins

Chinese regulators on Monday declared initial coin offerings illegal, dealing a blow to the latest financial-markets mania and sending the prices of the two leading cryptocurrencies, bitcoin and ether, tumbling. The regulatory maneuvering occurs as fears have grown about initial coin offerings, which have captured investors’ imagination like dot-com startups once did years ago.

China’s role in cryptocurrencies is significant, but shifting. A year ago, Chinese exchanges comprised more than 90% of digital-currency trading. Earlier this year, the People’s Bank of China started imposing regulations on the exchanges, and much of the volume moved to Japan and Korea.

Aveva-Schneider Electric Merger

UK engineering software firm Aveva is to merge with the software arm of French energy group Schneider Electric, creating a company worth about £3bn. Aveva employs 1,700 people worldwide and grew out of Cambridge University in the 1960s - pioneering 3D design whilst Schneider has been in the software business for more than 50 years.

This was Schneider's third attempt in three years to combine the companies. The new company will cover a wider range of sectors, combining Aveva's experience in oil and gas and power and Schneider's reach in the chemicals, food and beverage industries. It will also have a greater global reach, with Schneider's exposure to North America added to Aveva's existing markets.

Disclaimer:

This article was issued by Peter Petrov, Junior 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.