Market Commentary

The main US stock market ended the day little changed. The NASDAQ gained modestly while the Dow Jones industrial average and S&P 500 remained at the previous day’s level. Little economic or corporate news this week meant that stocks drifted lower and in the absence of clear catalysts, investors are being more cautious.

China continues to be a major concern for market participants, resulting in a sharp drop in commodity prices, copper in particular. Since February, investors have been on edge as data that showed Chinese exports tumbling by 18%. The first ever Chinese corporate debt default and the Chinese central bank loosening its grip on its currency have further shaken confidence in what was considered a solid investment region.

In Europe this morning Assicurazioni Generali S.P.A. reported results that fell short of projections. Hugo Boss AG forecast accelerated sales growth and rising earnings for this year on sales in Asia. Deutsche Lufthansa AS reinstalled dividends and reiterated its target to triple operating profits within 2 years.

Meanwhile Russia has held rates constant after increasing them aggressively due to the Ukraine crisis. Merkel, in an attempt to tone down the exchange of arguments, stated that Russia is still an important factor in maintaining stable energy supplies. Consumer prices in France and Ireland have increased. Draghi is to speak after the European markets close.

This article was issued by Calamatta Cuschieri, visit www.cc.com.mt for more information.

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