Markets cool off after wild session | Calamatta Cuschieri

US markets closed with small gains after a volatile session on Thursday. Investors took a break from an earlier sell-off triggered by continued US-China trade tensions and worries about global economic growth. The Dow Jones Industrial Average advanced 43.47 points, or 0.2%, to 25,169.88 whilst the S&P 500 index edged up 5.84 points, or 0.2%, to 2,788.86. The Nasdaq Composite Index gained 20.41 points, or 0.3%, to end the session at 7,567.72.

European markets also rose as a round of positive corporate earnings boosted the media sector and lifted the region’s bourses. The pan-European STOXX 600 index gained 0.4 percent although on reduced volume as markets closed for holidays in Switzerland, Denmark and Sweden. Germany’s DAX rose 0.5 percent as digital publishing house, Axel Springer, jumped 22.2% on its best day since listing.

Maltese markets also edged higher with the MSE Equity Total Return Index closing up 0.095% at 9,813.081 points. MaltaPost Plc led the gains with shares jumping 7.69% to €1.40, followed by Trident estates Plc which ended up 4.14 percent at €1.76. FIMBank Plc also posted a gain of 1.67% at $0.68.

Uber reports $1 billion loss

Uber Technologies Inc reported a $1 billion loss on Thursday as the ride-hailing service spends heavily to build up its food delivery and freight businesses, sending revenues up 20% in its first quarterly report as a public company. The results however indicate that the newly public company was able to hit its own financial targets, likely to offer some assurance to investors.

Shares rose 2.6% following a conference call in which Chief Executive Dara Khosrowshahi cited business improvements, such as fewer consumer promotions in the second quarter, but called 2019 an “investment year.” “Our story is simple. We’re the global player,” Khosrowshahi told analysts on his first earnings call after the company’s IPO earlier this month. “Our job is to grow fast at scale and more efficiently for a long, long time.”

Trump vows tariffs on Mexican goods

US President Donald Trump vowed to impose a 5% tariff on Mexican goods until that country stops immigrants from entering the U.S. illegally, brandishing a weapon used against a widening group of countries and jeopardizing a new North American trade agreement.

The tariff would take effect on June 10, “until such time as illegal migrants coming through Mexico, and into our country, STOP,” Trump said in a Twitter post on Thursday night. Economists warned the move could hurt both countries. Mexico’s exports to the U.S. account for about four-fifths of total overseas shipments, or about 28% of its gross domestic product, according to Bloomberg chief economist Tom Orlik.
 

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 are 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.