New U.S. sanctions to slam Huawei | Calamatta Cuschieri

Markets summary

The Maltese market closed in the green on Monday, with the MSE total index ending the session 0.022% higher to 7,574.444 points. Only four stocks were active during the trading session. Bank of Valletta plc was down 0.42% to 0.94, HSBC Bank Malta plc however added 2.42% closing at 0.845. Malta Properties Company plc slid 7.41% to 0.50 and Malta International Airport plc closed unchanged.

European shares closed higher on Monday as China-exposed miners jumped on fresh stimulus for the world’s second-largest economy, but concerns about a resurgence of coronavirus cases in the region kept gains in check. Travel and leisure stocks SXTP fell 1.5%, continuing to slide after Britain added France and other countries to its quarantine list last week. British Airways-owner IAG fell 5.3% and InterContinental Hotels, which runs the Crowne Plaza brand, slipped 2.4% as Britain saw a fresh surge in COVID-19 cases.

U.S. stocks finished mostly higher Monday, with the S&P 500 index ending near record territory, despite a congressional stalemate over fresh stimulus to help Americans and businesses hurt by the coronavirus pandemic. The Dow Jones Industrial Average fell 0.3%, to end at 27,844.91. The S&P 500 index rose 0.3%, closing at 3,381.99. The Nasdaq Composite Index added 1%, finishing at 11,129.73.

New U.S. sanctions to slam Huawei

Ramped-up U.S. restrictions on Huawei are likely to cut off the Chinese smartphone maker’s access to even off-the-shelf chips and disrupt the global tech supply chain once again

The Trump administration on Monday expanded its curbs on Huawei and banned suppliers from selling chips made using U.S. technology to the firm without a special license - closing potential loopholes in its May sanctions that could have let Huawei access the tech via third parties.

The restrictions underscore the rift in Sino-U.S. relations, at their worst in decades, as Washington presses governments around to world to squeeze Huawei out, alleging the company would hand over data to the Chinese government for spying.

Huawei denies it spies for China.

Huawei has said it will stop making its flagship Kirin chipsets from September because U.S. pressure on its suppliers had made it impossible for its HiSilicon division to keep making the chipsets that are key components in mobile phones.


 

This article was issued by Nadiia Grech, 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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