Markets edge higher | Calamatta Cuschieri

Global markets turn higher as investors turn optimistic on post-covid growth

US stocks reversed earlier losses and traded higher on Monday as investors looked beyond the civil unrest and protests currently grappling the nation. The Dow Jones Industrial Average gained 91.91 points, or 0.4%, to 25,475.02, with the S&P 500 climbing 11.42 points, or 0.4, to 3,055.73. The Nasdaq Composite rose 62.18 points, or 0.7 percent, to end the session at 9,552.05.

European markets also rose even on lower trading activity caused by market holidays for Germany, Switzerland, Denmark and Norway. The pan-European STOXX 600 index gained 1.1%, driven by gains in the travel & leisure, financial and mining sectors. The UK’s FTSE 100 rose 1% and the French CAC 40 surged 1.2%.

Maltese markets meanwhile traded lower with the MSE Equity Total Return Index closing down 0.454 percent at 8,175.899 points. International Hotel Investments Plc led the losses with shares down 5.98 percent at €0.55, followed by Plaza Centres Plc which lost 3.06 percent to €0.95. Santumas Shareholdings Plc meanwhile posted the largest gain as shares jumped 9.56 percent to €1.49.

Record issues of new stock

New stock issues surged at the fastest rate ever, as U.S. public companies sold more than $60 billion in shares in May, capitalising on a stock market rally fueled by hopes that the COVID-19 pandemic is subsiding. The market has rocketed back with $22.3 billion sold in April and $65.3 billion in May, the highest on record.

The benchmark S&P 500 Index .SPX has risen around 40% off of recent lows, hit in late-March at the height of market panic during the coronavirus outbreak, and is now roughly 10% shy of all-time highs hit in February. The share sales echo a similar trend in U.S. debt markets, where companies have raised more than $1 trillion so far in 2020.

Renewable energy sees sharp drop in cost

Plunging costs of renewables mark a turning point in a global transition to low-carbon energy, with new solar or wind farms increasingly cheaper to build than running existing coal plants, according to a new report. More than half of the renewable capacity added in 2019 achieved lower power costs than the cheapest new coal plants, the report found.

Auction results also suggest that the average cost of building new solar photovoltaic (PV) and onshore wind power now costs less than keeping many existing coal plants running, reinforcing the case for phasing out coal, the report said. Such a switch would also reduce global carbon dioxide emissions by about the equivalent of 5% of the total CO2 emissions in 2019.

 

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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