Markets post strong start to the week | Calamatta Cuschieri

Markets stage a strong start on Monday and UK financial watchdog lifts Wirecard restrictions

US markets started the week on a strong note Monday and searched on the back of upbeat economic data and a rally in Boeing shares. The Dow Jones Industrial Average jumped 580.25 points, or 2.3 percent, to 25,595.80, with the S&P 500 index climbing 44.19 points, or 1.5 percent, to 3,053.24. The Nasdaq Composite Index advanced 116.93 points, or 1.2 percent, to close the session at 9,874.15.

European markets ended a choppy trading session higher as the strong gains on Wallstreet and a rally in cyclical stocks helped lift the region’s bourses. The pan-European Stoxx 600 index gained 0.4 percent with German scandal-hit payments company Wirecard soaring 154.5% following a near 170% plunge over the last three weeks.

Maltese markets meanwhile remained closed on Monday during the Feasts of Saint Peter and Saint Paul.

UK lifts Wirecard suspension

The UK's financial watchdog has lifted restrictions on German payments company Wirecard, allowing it to resume payment activities. The Financial Conduct Authority (FCA) imposed restrictions on the company's UK arm after its collapse last week leaving thousands of people unable to access their money or make payments through apps as a result.

"Our primary objective all along has been to protect the interests and money of consumers," the FCA said. “Customers should now, or very shortly, be able to use their cards as usual.” The FCA said any customers who were still experiencing difficulties in using their card should contact their card provider directly.

The swift action came after Wirecard last week disclosed a €1.9bn missing balance in its books and subsequently filed for insolvency. Former CEO Markus Braun has been arrested and accused of inflating Wirecard's finances to make them appear healthier to investors and customers.


 

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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