Markets bounce back in late trading | Calamatta Cuschieri

US markets posted sudden turnaround in afternoon trade as banks regain lost ground

US markets staged the biggest turnaround in about two months on Thursday, as investors overlooked data that showed 2.9 million Americans lost jobs last week. The Dow Jones Industrial Average jumped 377.37 points, or 1.6 percent, to 23,625.34 with the S&P 500 index gaining 32.50 points, or 1.2 percent, to 2,852.50. The Nasdaq Composite Index rose 80.55 points, or 0.9 percent, to close the session at 8,943.72.

European markets meanwhile did not catch the change in sentiment and closed lower on worries the global economy won’t rapidly bounce back after the lockdowns from the coronavirus pandemic. The pan-European Stoxx 600 index lost 2.2 percent with the banks and financials sector taking a hit.

 Maltese markets also closed lower with the MSE Equity Total Return Index falling 0.472 percent to 8,234.379. Medserv Plc led the losses with shares down 12.5 percent at $0.70, followed by Go Plc which fell 6.22 percent to €3.62. RS2 Software Plc topped the gainers, rising 2.13 percent to €1.92.

Lufthansa looks to restart flights

Lufthansa announced plans to resume flights to destinations including Los Angeles, Toronto and Mumbai next month as it begins to restore some of the capacity grounded by the coronavirus crisis, the German airline group said on Thursday. The news comes as carriers make tentative plans to return aircraft to service amid uncertainty over passenger demand, new health rules being drawn up and quarantine measures in some markets.

Lufthansa will restore services from Frankfurt and a smaller number from Munich as it returns to European destinations including Majorca as well as 13 intercontinental routes. The SWISS, Eurowings and Brussels Airlines subsidiaries are also restoring some flights. Lufthansa had said last week it planned to fly more planes in June.

US unemployment rate rises

The novel coronavirus crisis continues to pummel the U.S. labor market, with the number of Americans filing for unemployment benefits falling less than expected last week, suggesting a second wave of layoffs in industries and jobs not initially impacted by business closures caused by the pandemic. Federal Reserve Chair Jerome Powell on Wednesday warned of an “extended period” of weak growth and stagnant incomes. The economy lost a staggering 20.5 million jobs in April, the steepest plunge in payrolls since the Great Depression of the 1930s.

The latest numbers lifted to 36.5 million the number of people who have filed claims for unemployment benefits since mid-March, or more than one in five workers losing their job. Claims will be closely watched in the coming weeks for signs whether companies rehire workers as businesses reopen.
 

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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