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Markets closed lower on Thursday, Google faces 5 billion-dollar fine and Boeing leads over Airbus on plane orders

Both U.S. and European markets closed lower on Thursday
Both U.S. and European markets closed lower on Thursday

U.S. stocks closed lower on Thursday, as major indexes saw some profit-taking after a five-day rally that was driven largely by optimism over the strength of corporate earnings. The Dow Jones Industrial Average lost 134.70 points, or 0.5%, to 25,064.50, ending its longest winning streak in two months. The S&P 500 fell 11.13 points, or 0.4%, to 2,804.49 with financials leading the decline.

European markets also finished lower, pulling back from a one-month high as mining stocks tracked a selloff in the metal prices, and the latest round of earnings reports rolled out. Germany’s DAX 30 index lost 0.6% to 12,686.29, while France’s CAC 40 fell 0.6% to 5,417.07. The FTSE 100 index on the other hand rose 0.1% to close at 7,683.97, marking a third straight session in positive territory as a weaker pound made UK stocks more attractive to investors.

Google faces 5 billion-dollar fine

Alphabet Inc.’s Google received a record 4.3 billion-euro ($5 billion) antitrust fine from the EU Wednesday and was ordered to change the way it puts search and web-browser apps onto Android mobile devices. Google was given until mid-October to stop what the EU called "illegal practices" on contracts with handset manufacturers that push its services in front of users. The company faces daily fines of 5 percent of revenue if it doesn’t obey.

U.S. President Donald Trump meanwhile criticized the European Union and said the bloc was taking advantage of the United States as the fine is nearly double the previous penalty that the company was ordered to pay last year, but it represents a little more than two weeks of revenue for its parent company, Alphabet Inc. Google said it would appeal the EU decision.

Boeing leads over Airbus on plane orders

Boeing claimed victory on Thursday after outselling rival Airbus at this week’s Farnborough Airshow, where the world’s largest planemakers repeated last year’s comparable tally of around 900 firm and draft orders with the help of leasing industry demand. Airbus blamed the reluctance of many of their recent customers on trade tensions which had made some companies nervous about appearing to side with the United States or other economic powers in a growing global trade battle.

The world’s largest planemaker, Chicago-based Boeing, said it had won 528 orders and commitments at the showcase event, while Airbus reported 431 new deals, or 371 on a like-for-like basis after stripping out the newly acquired Bombardier CSeries. Boeing also saw a flurry of demand for freighters as cargo shippers expand despite trade tensions.

Disclaimer: This article was issued by Peter Petrov, junior 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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