Markets hit records | Calamatta Cuschieri

Markets hit records, US halting Chinese investment & Spotify’s private IPO

Spotify has filed confidentially with U.S. regulators for an initial public offering
Spotify has filed confidentially with U.S. regulators for an initial public offering

U.S. markets climbed to record highs, gold fell and the dollar extended gains as the minutes from the Federal Reserve’s December policy meeting showed officials continued to back gradual interest-rate increases. The S&P 500 rose 17.26 points, or 0.6%, to 2,713.07 to close at a new record for the second session in a row this year. The Dow Jones Industrial Average advanced DJIA, +0.40% 98.67 points, or 0.4%, to 24,922.68, also marking a closing record and leaving it less than 100 points away from trading above 25,000.

U.K. stocks closed a volatile day in positive territory on Wednesday, as energy majors rallied on the back of rising oil prices and retailer Next jumped after an upbeat trading report. The FTSE 100 index ended 0.3% higher at 7,671.11, partly reversing a 0.5% loss from Tuesday, the first trading session of the year after being boosted by a weaker Pound.

US blocks Alibaba acquisition

The US has blocked the $1.2bn (£880m) sale of money transfer firm Moneygram to China's Ant Financial, the digital payments arm of Alibaba. Regulators overseeing foreign investments in the US had refused to support the takeover, the firms said. It is the highest profile Chinese deal to be rejected by Washington since Donald Trump came to power.

The collapse is a blow to the ambitions of Alibaba's billionaire executive chairman Jack Ma, who had promised President Trump that he would create a million US jobs. Alibaba, which owns Ant Financial together with Alibaba executives, saw the US market as a way to expand overseas in the face of fierce domestic competition from the likes of Tencent's WeChat.

Secret Spotify IPO

Music streaming service Spotify has filed confidentially with U.S. regulators for an initial public offering and is targeting a direct listing in the first half of 2018 that would allow some longtime investors to cash out, a source familiar with the matter said on Wednesday.

If Spotify, which was valued at as much as $19 billion last year, goes ahead with its plans, it would be the first major company to carry out a direct listing, an unconventional way to pursue an IPO without raising new capital. A direct listing mainly eliminates the need for a Wall Street bank or broker to underwrite an IPO along with many associated fees and could change the way companies approach selling shares to the public.


This article was issued by Peter Petrov, Junior Trader at Calamatta Cuschieri. For more information visit, The information, view and opinions provided in this article is 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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