Uber Technologies IPO | Calamatta Cuschieri

Market summary and overview

US markets recovered from session lows but still ended down as trade tensions weighed on investors’ minds for four straight days. The Dow Jones Industrial Average retreated 138.97 points, or 0.5%, to end at 25,828.36 after falling by as much as 450 points earlier whilst the S&P 500 index slipped 8.70 points, or 0.3%, to 2,870.72. The Nasdaq Composite Index dropped 32.73 points, or 0.4%, to end the session at 7,910.59.

European markets also felt the pressures from global trade uncertainty with the region’s bourses closing lower. The pan-European Stoxx 600 index dipped 0.9% to 378.76 with Germany’s DAX also losing 0.9% to end at 12,068.28. The U.K.’s FTSE 100 moved 0.4% lower to 7,243.36 and France’s CAC 40 fell 1.2% to end at 5,354.3.

Maltese markets meanwhile closed higher with the MSE Equity Total Return Index recovering from previous losses and closing up 0.226% at 9,630.769 points. Trident Estates Plc led the gains with shares jumping 4.26% to €1.47, followed by Maltapost Plc which gained 3.13% to end at €1.32.

Uber’s debut trading day

Uber Technologies Inc. awaits its trading debut on Friday after the No. 1 ride-hailing company raised $8.1 billion in the biggest U.S. IPO since 2014, pricing shares at $45 each. It had marketed them for $44 to $50 apiece, picking a share price toward the bottom of the marketed range and at a valuation below its last private funding round.

Based on the amount of stock outstanding after the offering, Uber’s IPO price gives the San Francisco-based company a market value of $75.5 billion. Its last private market value was $76 billion. The fully diluted value in the IPO, including restricted stock units and other shares, could be about $82 billion.

US Escalates trade tensions

The United States escalated a tariff war with China on Friday by hiking levies to 25% for $200 billion worth of Chinese goods in the midst of last-ditch talks to rescue a trade deal. Trump also said he would start the “paperwork” on Friday for 25% duties on another $325 billion in Chinese imports.

Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin talked for 90 minutes on Thursday and were expected to resume efforts on Friday to rescue a deal that could end a 10-month trade war between the world’s two largest economies.

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.