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Market news, Canada rejoins NAFTA talks and Aston Martin to launch London IPO

Aston Martin to launch London IPO
Aston Martin to launch London IPO

The S&P 500 and the Nasdaq on Tuesday finished at records for a third consecutive session after a measure of consumer confidence hit a nearly 8-year high, highlighting an increasing expansion of the US economy. The Dow Jones Industrial Average rose to 26,064.02, coming within 2.1% of its record. The S&P 500 index edged up to 2,897.52 and the Nasdaq Composite Index added 0.2 percent to reach 8,030.04.

European shares hit a two-week high as the NAFTA deal between the US and Mexico boosted investor confidence on Tuesday, with British stocks rising further than European shares as the market reopened after a public holiday. The FTSE 100 climbed 0.5 percent, boosted by heavyweight mining stocks and stocks exposed to emerging markets. The pan-European STOXX 600 index hit a two-233k high before ending the day flat; Germany’s exporter-heavy DAX fell 0.1 percent.

Aston Martin to float on London Stock Exchange

Luxury carmaker Aston Martin plans to float on the London Stock Exchange, completing a turnaround after new models and a surge in volumes helped the brand return to profitability after years of losses. If successful, it becomes the first British-based carmaker to be listed in London for years, following the sale of names such as Jaguar, Bentley, and Rolls-Royce to foreign owners.

The initial public offering, similar to Ferrari, could see the firm valued at up to 5 billion pounds. Aston Martin stated it filed a Registration Document with Britain’s Financial Conduct Authority. CEO Andy Palmer hopes the flotation would be completed by end of year, which would coincide with an anticipated Brexit deal. Aston Martin sells around 25 percent of its cars to the EU and operates in Britain. Palmer believes that Brexit will not have a major impact on the firm.

Canada rejoins NAFTA talks

Canada is set to restart talks with the US on Tuesday to work on an updated version of the NAFTA deal, which will be signed off in the coming days. Canadian Foreign Minister is in Washington to continue negotiations, following the news that Mexico and the US have already reached an agreement that rewrites the trilateral trade pact.

President Trump hailed this agreement as a big day for trade, sending US stocks to fresh all-time highs Monday, with Asian equities also higher Tuesday. Trump has threatened tariffs on Canadian-made cars if Canada does not join the updated deal. Investors are cautiously optimistic Ottawa may be able to preserve the three-nation pact.

Disclaimer: This article was issued by Lauriann Azzopardi, junior investment advisor 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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