Markets surge as virus fear subside | Calamatta Cuschieri

Global markets rally as investors set aside coronavirus fears and Airbus takes over Bombardier’s stake in its A220 planes

US markets moved higher on Wednesday with all three benchmarks registering fresh record closes as a slowdown in the number of new reported cases of the coronavirus lifted stocks. The Dow Jones Industrial Average surged 275.08 points, or 0.9 percent, to end at 29,551.42, with the S&P 500 gaining 21.70 points or 0.7 percent, to finish at 3,379.45. The Nasdaq Composite Index climbed 87.02 points, or 0.9 percent, to close the session at 9,725.96.

European markets also advanced towards record territory, boosted by better-than-expected corporate earnings from companies like Heineken and Kering. The pan-European Stoxx 600 index gained 0.4 percent to 430.17 with Germany’s DAX rising 0.7 percent to 13,715.39. The UK’s FTSE 100 index added 0.3 percent and France’s CAC 40 closed up 0.4 percent.

Maltese markets meanwhile edged lower  retreat with the MSE Equity Total Return Index closing down 0.148 percent at 9,462.01. GlobalCapital Plc led the losses with shares down 3.33 percent at €0.29 following by RS2 Software Plc, down 1.65 percent at €2.38. Loqus Holdings Plc meanwhile gained 2.67 percent to €0.77 with Malta Properties Company Plc following closely behind, adding 2.29 percent to €0.67.

Airbus to buy Bombardier stake in its A220

European planemaker Airbus has reached a deal to buy the remaining stake of Canadian plane and train maker Bombardier in the A220 passenger jet program, the company said on Thursday. Airbus is negotiating a preliminary order for up to 100 A220 jets as it prepares to secure the funding for acquiring the stake. Bombardier added that the transaction would also help the company - which faced a cash crunch in 2015 - improve its overall financial position.

Airbus plunged to a 1.362 billion euro net loss in 2019, weighed down by a multinational bribery settlement, but the European aerospace group pledged to increase operating profit and deliver 880 commercial jets this year. The group will focus on operational and cost improvements in 2020 as well as “reinforcing our company culture”, Chief Executive Guillaume Faury said in a company statement.

Raising its proposed dividend by 9% to 1.80 euros per share, Airbus predicted full-year free cash flow of around 4 billion euros, improved from 3.509 billion in 2019. Its long-delayed A400M programme delivered 14 planes in 2019, on schedule, but is now hampered by “increasingly challenging” obstacles including repeated extensions to a German export ban on Saudi Arabia, the company said.

 

This article was issued by Peter Petrov, 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.

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